Starbucks 2014 Annual Report Download

Download and view the complete annual report

Please find the complete 2014 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

Fiscal 2014 Annual Report

Table of contents

  • Page 1
    Fiscal 2014 Annual Report

  • Page 2

  • Page 3
    ...Seattle, Washington 98134 (206) 447-1575 (Address of principal executive offices, zip code, telephone number) Securities Registered Pursuant to Section 12(b) of the Act: Title of Each Class Common Stock, $0.001 par value per share Name of Each Exchange on Which Registered Nasdaq Global Select Market...

  • Page 4
    ... Public Accounting Firm Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure Item 9A Controls and Procedures Item 9B Other Information PART III Item 10 Directors, Executive Officers and Corporate Governance Item 11 Executive Compensation Item 12 Security...

  • Page 5
    ..., but not limited to, the risks and uncertainties discussed under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations". Given these risks and uncertainties, you should not rely on forward-looking statements as a prediction of actual results...

  • Page 6
    ...tea products and license our trademarks through other channels such as licensed stores, grocery and national foodservice accounts. In addition to our flagship Starbucks Coffee brand, we also sell goods and services under the following brands: Teavana, Tazo, Seattle's Best Coffee, Evolution Fresh, La...

  • Page 7
    .... Our strategy for expanding our global retail business is to increase our market share in a disciplined manner, by selectively opening additional stores in new and existing markets, as well as increasing sales in existing stores, to support our long-term strategic objective to maintain Starbucks...

  • Page 8
    ... coffee, tea and related products, including distinctively packaged roasted whole bean and ground coffees, a variety of premium single-serve and ready-to-drink coffee and tea products, juices and bottled water. Starbucks® stores also offer an assortment of fresh food offerings, including selections...

  • Page 9
    Retail sales mix by product type for company-operated stores: Sep 28, 2014 Sep 29, 2013 Sep 30, 2012 Fiscal Year Ended Beverages Food Packaged and single-serve coffees and teas Other(1) Total (1) 73% 18% 4% 5% 100% 74% 18% 4% 4% 100% 75% 17% 4% 4% 100% "Other" primarily includes sales of ready...

  • Page 10
    ... tea products to grocery, warehouse clubs and specialty retail stores. It also includes revenues from product sales to and licensing revenues from manufacturers that produce and market Starbucks- and Seattle's Best Coffee-branded products through licensing agreements. 6 Starbucks Corporation 2014...

  • Page 11
    ... 3% of total net revenues in fiscal 2014. We sell Starbucks® and Seattle's Best Coffee® roasted whole bean and ground coffees, a selection of premium Tazo® teas, Starbucks VIA® Ready Brew, and other coffee and tea related products to institutional foodservice companies that service business and...

  • Page 12
    ... 47,000 in company-operated stores and the remainder in regional support operations. The number of Starbucks employees represented by unions is not significant. We believe our current relations with our employees are good. Executive Officers of the Registrant Name Age Position Howard Schultz Troy...

  • Page 13
    ...general manager, Foodservice from August 2002 to January 2007. Scott Maw joined Starbucks in August 2011 and has served as executive vice president, chief financial officer since February 2014. From October 2012 to February 2014, he served as senior vice president, Corporate Finance and as corporate...

  • Page 14
    ... of 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 such...

  • Page 15
    ...-of-sale, web and mobile platforms, including online and mobile payment systems and rewards programs, and for administrative functions, as well as the information technology systems of our third party business partners and service providers, can contain personal, financial or other information that...

  • Page 16
    ... new products and platforms while maintaining demand for our current offerings; • continuing 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; • executing...

  • Page 17
    ... in the US due to higher rents for prime store locations or costs of compliance with country-specific regulatory requirements. Because many of our international operations are in an early phase of development, operating expenses as a percentage of related revenues are often higher compared to more...

  • Page 18
    ... in our supply chain, such as material interruption of roasted coffee supply due to the casualty loss of any of our roasting plants, interruptions in service by our third party logistic service providers or common carriers that ship goods within our distribution channels, trade restrictions, such as...

  • Page 19
    ...affect our financial results. 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, mobile payments, reloads and...

  • Page 20
    ... 28, 2014, Starbucks had 10,713 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. In addition to the locations listed above, we hold inventory at...

  • Page 21
    ... that the Board of Directors considers relevant. ISSUER PURCHASES OF EQUITY SECURITIES The following table provides information regarding repurchases of our common stock during the quarter ended September 28, 2014: Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs...

  • Page 22
    ... that date and the reinvestment of dividends paid since that date. The stock price performance shown in the graph is not necessarily indicative of future price performance. $500 $400 $300 $200 $100 $0 9/27/2009 10/3/2010 10/2/2011 9/30/2012 9/29/2013 9/28/2014 Starbucks Corporation NASDAQ...

  • Page 23
    ... "Management'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 28, 2014 (52 Wks) Sep 29, 2013 (52 Wks) Sep 30, 2012 (52 Wks) Oct 2, 2011 (52...

  • Page 24
    ...Includes only Starbucks® company-operated stores open 13 months or longer. For fiscal 2010, comparable store sales percentages were calculated excluding the 53rd week. Comparable store sales exclude the effect of fluctuations in foreign currency exchange rates. 20 Starbucks Corporation 2014 Form...

  • Page 25
    ... 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 are reported within All Other Segments. EMEA store data has been adjusted for the acquisition of store locations in Austria...

  • Page 26
    ... in number of transactions. Enhanced food offerings, including the full rollout of our La Boulangeâ„¢ food platform in the US, the impact of price increases in our retail stores and successful promotional beverages contributed to the growth in comparable store sales. Americas operating margin grew...

  • Page 27
    ... 2014 results, primarily due to the mildly dilutive margin impact of the acquisition of Starbucks Japan, largely driven by the change in business model from a joint venture to a company-operated market. We expect strong EPS growth in fiscal 2015, due in part to an anticipated acquisition-related...

  • Page 28
    ... 28, 2014 Sep 29, 2013 Sep 28, 2014 % of Total Net Revenues Sep 29, 2013 Fiscal Year Ended Cost of sales including occupancy costs Store operating expenses Other operating expenses Depreciation and amortization expenses General and administrative expenses Litigation charge Total operating expenses...

  • Page 29
    ... expense adjustments for returns filed in prior years. Also contributing to the increase in fiscal 2014 was additional tax resulting from the sale of our Australian company-operated retail store assets and operations and our 50% equity interest in our Malaysia joint venture. Starbucks Corporation...

  • Page 30
    ...2013 Fiscal Year Ended As a % of Americas Total Net Revenues Net revenues: Company-operated stores Licensed stores CPG, foodservice and other Total net revenues Cost of sales including occupancy costs Store operating expenses Other operating expenses Depreciation and amortization expenses General...

  • Page 31
    ... 160 basis points, primarily due to sales leverage and reduced support costs, largely driven by the shift to more licensed stores. The combination of these changes resulted in an overall increase in operating margin of 370 basis points over fiscal 2013. Starbucks Corporation 2014 Form 10-K 27

  • Page 32
    ..., 2014 Sep 29, 2013 Fiscal Year Ended As a % of China/Asia Pacific Total Net Revenues Net revenues: Company-operated stores $ Licensed stores Total net revenues Cost of sales including occupancy costs Store operating expenses Other operating expenses Depreciation and amortization expenses General...

  • Page 33
    ...Channel Development total net revenues for fiscal 2014 increased $147 million, or 11%, over the prior year, primarily driven by increased sales of premium single-serve products (approximately $111 million) and increased foodservice sales (approximately $24 million). Operating Expenses Cost of sales...

  • Page 34
    ...Sep 28, 2014 Sep 29, 2013 Fiscal Year Ended % Change Net revenues: Company-operated stores Licensed stores CPG, foodservice and other Total net revenues Cost of sales Store operating expenses Other operating expenses Depreciation and amortization expenses General and administrative expenses Total...

  • Page 35
    ... 29, 2013 Sep 30, 2012 Sep 29, 2013 % of Total Net Revenues Sep 30, 2012 Fiscal Year Ended Cost of sales including occupancy costs Store operating expenses Other operating expenses Depreciation and amortization expenses General and administrative expenses Litigation charge Total operating expenses...

  • Page 36
    ... ruling related to state unclaimed property laws (approximately $29 million). Also offsetting the gains were unfavorable mark-to-market adjustments in fiscal 2013 compared to favorable mark-to-market adjustments in fiscal 2012 from derivatives used to manage our risk of commodity price fluctuations...

  • Page 37
    ... of company-operated store revenues) decreased 80 basis points, primarily driven by sales leverage (approximately 60 basis points). General and administrative expenses as a percentage of total net revenues increased 40 basis points primarily due to the costs related to our October Global Leadership...

  • Page 38
    ...30, 2012 Fiscal Year Ended As a % of EMEA Total Net Revenues Net revenues: Company-operated stores Licensed stores CPG, foodservice and other Total net revenues Cost of sales including occupancy costs Store operating expenses Other operating expenses Depreciation and amortization expenses General...

  • Page 39
    ..., 2012 Sep 29, 2013 Sep 30, 2012 Fiscal Year Ended As a % of CAP Total Net Revenues Net revenues: Company-operated stores Licensed stores Total net revenues Cost of sales including occupancy costs Store operating expenses Other operating expenses Depreciation and amortization expenses General and...

  • Page 40
    ... 30, 2012 Sep 29, 2013 Sep 30, 2012 Fiscal Year Ended As a % of Channel Development Total Net Revenues Net revenues: CPG Foodservice Total net revenues Cost of sales Other operating expenses Depreciation and amortization expenses General and administrative expenses Total operating expenses Income...

  • Page 41
    ... Sep 29, 2013 Sep 30, 2012 % Change Fiscal Year Ended Net revenues: Company-operated stores Licensed stores CPG, foodservice and other Total net revenues Cost of sales Store operating expenses Other operating expenses Depreciation and amortization expenses General and administrative expenses Total...

  • Page 42
    ... for working capital needs, capital expenditures and other corporate purposes, including acquisitions and share repurchases. In the first quarter of fiscal 2014, we issued and subsequently repaid commercial paper borrowings of $225 million to fund a portion of the $2.8 billion payment for the Kraft...

  • Page 43
    ... 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 included in Item 8 of Part II of this 10-K. Starbucks Corporation 2014 Form 10-K 39

  • Page 44
    ... of operations. For additional details see Product Supply in Item 1, as well as Risk Factors in Item 1A of this 10-K. FINANCIAL RISK MANAGEMENT Market risk is defined as the risk of losses due to changes in commodity prices, foreign currency exchange rates, equity security prices, and interest rates...

  • Page 45
    ... consolidated statements of earnings. Our trading securities portfolio approximates a portion of our liability under our Management Deferred Compensation Plan ("MDCP"), which is included in accrued compensation and related costs, within accrued liabilities on the consolidated balance sheets. Changes...

  • Page 46
    ... discount rate. For company-operated stores, estimates of revenue growth and operating expenses are based on internal projections and consider the store's historical performance, the local market economics and the business environment impacting the store's performance. The discount rate is selected...

  • Page 47
    ... values typically include projected revenue growth and operating expenses related to existing businesses, product innovation and new store concepts, as well as selecting an appropriate discount rate. For indefinite-lived intangible assets, management also makes assumptions around the royalty rate...

  • Page 48
    ... 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. 44 Starbucks Corporation 2014...

  • Page 49
    ... STARBUCKS CORPORATION CONSOLIDATED STATEMENTS OF EARNINGS (in millions, except per share data) Sep 28, 2014 Sep 29, 2013 Sep 30, 2012 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 50
    STARBUCKS CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) Sep 28, 2014 Sep 29, 2013 Sep 30, 2012 Net earnings including noncontrolling interests Other comprehensive income/(loss), net of tax: Unrealized holding gains/(losses) on available-for-sale securities Tax (expense)/...

  • Page 51
    STARBUCKS CORPORATION CONSOLIDATED BALANCE SHEETS (in millions, except per share data) Sep 28, 2014 Sep 29, 2013 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 52
    ...on share-based awards Other Cash (used)/provided by changes in operating assets and liabilities: Accounts receivable Inventories Accounts payable Accrued litigation charge Income taxes payable, net Accrued liabilities and insurance reserves Deferred revenue Prepaid expenses, other current assets and...

  • Page 53
    STARBUCKS CORPORATION CONSOLIDATED STATEMENTS OF EQUITY (in millions) Common Stock Shares Amount Additional Paidin Capital Retained Earnings Shareholders' Equity Noncontrolling Interest Accumulated Other Comprehensive Income/(Loss) Total Balance, October 2, 2011 744.8 - (23.6) - 16.5 0.3 (12.3) - ...

  • Page 54
    ... of Significant Accounting Policies Acquisitions and Divestitures Derivative Financial Instruments Fair Value Measurements Inventories Equity and Cost Investments Supplemental Balance Sheet Information Other Intangible Assets and Goodwill Debt Leases Equity Employee Stock and Benefit Plans Income...

  • Page 55
    ... 2014, September 29, 2013 and September 30, 2012 Note 1: Summary of Significant Accounting Policies Description of Business We purchase and roast high-quality coffees that we sell, along with handcrafted coffee and tea beverages and a variety of fresh food items, through our company-operated stores...

  • Page 56
    ... 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 revenue streams, inventory purchases, assets...

  • Page 57
    ... for product and equipment sales to and royalties from our licensees, as well as receivables from our CPG and foodservice business customers. Our allowance for doubtful accounts is calculated based on historical experience, customer credit risk and application of the specific identification method...

  • Page 58
    ... in the consolidated statements of earnings. For assets within our retail operations, net impairment and disposition charges are recorded in store operating expenses. For all other assets, these charges are recorded in cost of sales including occupancy costs, other operating expenses, or general and...

  • Page 59
    ...Revenues Licensed store revenues consist of product and equipment sales to licensees, as well as royalties and other fees paid by licensees to use the Starbucks brand. Sales of coffee, tea and related products are generally recognized upon shipment to licensees, depending on contract terms. Shipping...

  • Page 60
    ...®, Teavana®, Evolution Fresh™ and La Boulange® stores, as well as on certain packaged coffee products purchased in select Starbucks® stores, at StarbucksStore.com, and through CPG channels. Reward program members receive various benefits depending on factors such as the number of Stars earned...

  • Page 61
    ..., non-employee directors and consultants. We also 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...

  • Page 62
    ... Share Repurchases We may repurchase shares of Starbucks common stock under a program authorized by our Board of Directors, including pursuant to a contract, instruction or written plan meeting the requirements of Rule 10b5-1(c)(1) of the Securities Exchange Act of 1934. Under applicable Washington...

  • Page 63
    ...): Fiscal 2013 Q1 Q2 Q3 Q4 Full Year Fiscal 2012 Full Year Net revenues: Company-operated stores Licensed stores CPG, foodservice and other Total net revenues Cost of sales including occupancy costs Store operating expenses Other operating expenses Depreciation and amortization expenses General and...

  • Page 64
    ... fiscal 2013, we acquired 100% ownership of a coffee farm in Costa Rica for $8.1 million in cash. The fair value of the net assets acquired on the acquisition date primarily comprised property, plant and equipment. On December 31, 2012, we acquired 100% of the outstanding shares of Teavana Holdings...

  • Page 65
    ... 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 purchase price of $30 million in cash. The fair value of the net assets...

  • Page 66
    ... on our dairy purchases, which are included in cost of sales. Gains and losses from diesel fuel swaps largely offset the financial impact of diesel fuel fluctuations on our shipping costs, which are included in operating expenses. Gains and losses on derivative contracts designated as hedging...

  • Page 67
    ... of deposit Total available-for-sale securities Trading securities Total short-term investments Prepaid expenses and other current assets: Derivative assets Long-term investments: Available-for-sale securities Agency obligations Corporate debt securities Auction rate securities Foreign government...

  • Page 68
    ... Commercial paper Corporate debt securities US government treasury securities Certificates of deposit Total available-for-sale securities Trading securities Total short-term investments Prepaid expenses and other current assets: Derivative assets Long-term investments: Available-for-sale securities...

  • Page 69
    ...Other Financial Instruments The estimated fair value of our long-term debt based on the quoted market price (Level 2) is included at Note 9, Debt. Note 5: Inventories (in millions) Sep 28, 2014 Sep 29, 2013 Coffee: Unroasted Roasted Other merchandise held for sale Packaging and other supplies Total...

  • Page 70
    ... from coffee and other product sales to, and royalty and license fee revenues generated from, equity investees. Revenues generated from these related parties were $219.2 million, $205.1 million, and $190.3 million in fiscal years 2014, 2013, and 2012, respectively. Related costs of sales were...

  • Page 71
    ... Starbucks® licensed stores in several global markets. We have the ability to acquire additional interests in some of these cost method investees at certain intervals. Depending on our total percentage ownership interest and our ability to exercise significant influence over financial and operating...

  • Page 72
    ...2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Sep 29, 2013 Accumulated Amortization Net Carrying Amount (in millions) Acquired rights Acquired trade secrets and processes Trade names, trademarks and patents Other definite-lived intangible assets Total...

  • Page 73
    ... for working capital needs, capital expenditures and other corporate purposes, including acquisitions and share repurchases. In the first quarter of fiscal 2014, we issued and subsequently repaid commercial paper borrowings of $225 million to fund a portion of the $2.8 billion payment for the Kraft...

  • Page 74
    ...statements of equity as of September 28, 2014 and September 29, 2013 is $39.4 million related to the increase in value of our share of the net assets of Starbucks Japan at the time of its initial public stock offering in fiscal 2002. We repurchased 10.5 million shares of common stock at a total cost...

  • Page 75
    During fiscal years 2014 and 2013, our Board of Directors declared the following dividends (in millions, except per share amounts): Dividend Per Share Record date Total Amount Payment Date Fiscal Year 2014: First quarter Second quarter Third quarter Fourth quarter Fiscal Year 2013: First quarter ...

  • Page 76
    ...30, 2012 Options RSUs Total stock-based compensation expense recognized in the consolidated statements of earnings Total related tax benefit Total capitalized stock-based compensation included in net property, plant and equipment and inventories on the consolidated balance sheets Stock Option Plans...

  • Page 77
    ... 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 0.4 million in fiscal 2014. Starbucks Corporation 2014 Form 10...

  • Page 78
    ... Compensation Plan for Non-Employee Directors under which non-employee directors may, for any fiscal year, irrevocably elect to defer receipt of shares of common stock the director would have received upon vesting of restricted stock units. The number of deferred shares outstanding related to...

  • Page 79
    ...: Fiscal Year Ended Sep 28, 2014 Total Sep 29, 2013 Litigation charge Sep 30, 2012 All Other 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 contributions Other, net...

  • Page 80
    ...28, 2014 Sep 29, 2013 Deferred tax assets: Property, plant and equipment Accrued occupancy costs Accrued compensation and related costs Other accrued liabilities Asset retirement obligation asset Deferred revenue Asset impairments Tax credits Stock-based compensation Net operating losses Litigation...

  • Page 81
    ... of net earnings per common share ("EPS") - basic and diluted (in millions, except EPS): Fiscal Year Ended Sep 28, 2014 Sep 29, 2013 Sep 30, 2012 Net earnings attributable to Starbucks Weighted average common shares and common stock units outstanding (for basic calculation) Dilutive effect...

  • Page 82
    ... certain foodservice accounts, primarily in Canada and the UK. Our Americas segment also includes our La Boulange® retail stores. Channel Development operations sell a selection of packaged coffees as well as a selection of premium Tazo® teas globally. Channel Development operations also produce...

  • Page 83
    Consolidated revenue mix by product type (in millions): Fiscal Year Ended Sep 28, 2014 Sep 29, 2013 Sep 30, 2012 Beverage Food Packaged and single-serve coffees and teas Other(1) Total (1) 9,458.4 2,505.2 2,370.0 2,114.2 $ 16,447.8 $ 58% $ 8,674.7 15% 2,189.8 14% 2,206.5 13% 1,795.8 100% $ 14,...

  • Page 84
    ... from equity investees Operating income/(loss) Total assets Fiscal 2012 Total net revenues Depreciation and amortization expenses Income from equity investees Operating income/(loss) Total assets Americas EMEA China / Asia Pacific Channel Development All Other Segments Segment Total $ 11,980.5 469...

  • Page 85
    ...total ownership in Starbucks Japan to a controlling 79% interest. Due to the limited time since the closing of the first tender offer step, the initial accounting for this acquisition is still in process but will be reflected in our first quarter of fiscal 2015 results. We will record the fair value...

  • Page 86
    ... PUBLIC ACCOUNTING FIRM To the 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 28, 2014 and September 29, 2013, and the related...

  • Page 87
    ... 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 88
    ...OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholders of Starbucks Corporation Seattle, Washington We have audited the internal control over financial reporting of Starbucks Corporation and subsidiaries (the "Company") as of September 28, 2014, based on criteria...

  • Page 89
    Item 9B. Other Information None. Starbucks Corporation 2014 Form 10-K 85

  • Page 90
    ... executive officer, chief operating officer, chief financial officer or controller, we will disclose the nature of the amendment or waiver, its effective date and to whom it applies on our website at www.starbucks.com/about-us/company-information/corporate-governance or in a report on Form 8-K filed...

  • Page 91
    ... 2013, and September 30, 2012; • 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 92
    ... as of November 14, 2014. Signature Title By: /s/ Howard Schultz chairman, president and chief executive officer Howard Schultz By: /s/ Scott Maw executive vice president, chief financial officer (principal financial officer and principal accounting officer) director Scott Maw By: /s/ William...

  • Page 93
    ... 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 Starbucks Corporation 2014 Form 10-K 89

  • Page 94
    ... Incorporated by Reference Exhibit Number Exhibit Description Form File No. Date of Filing Exhibit Number Filed Herewith 2.1 3.1 3.2 4.1 Agreement and Plan of Merger, dated as of November 14, 2012, among Starbucks Corporation, Taj Acquisition Corp. and Teavana Holdings, Inc. Restated Articles...

  • Page 95
    ... effective November 8, 2011 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 amended...

  • Page 96
    ... restated on September 14, 2010 Form of Stock Option Grant Agreement for Purchase of Stock under the 2005 Company-Wide SubPlan to the Starbucks Corporation 2005 Long-Term Equity Incentive Plan Credit Agreement dated February 5, 2013 among Starbucks Corporation, Bank of America, N.A., in its capacity...

  • Page 97
    ...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 98
    This page intentionally left blank.

  • Page 99

  • Page 100