Starbucks 2014 Annual Report Download - page 71

Download and view the complete annual report

Please find page 71 of the 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

Starbucks Corporation 2014 Form 10-K 67
Cost Method Investments
As of September 28, 2014, we had $19 million invested in equity interests of entities that develop and operate 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 policies, additional investments may require a retroactive application of the equity
method of accounting. We also have a $25 million investment in the preferred stock of Square, Inc.
During the fourth quarter of fiscal 2013, we sold our 18% 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 the second quarter of fiscal 2013, we sold our 18% interest in Cafe Sirena S. de R.L. de CV (a Mexican limited liability
company), to our controlling joint venture partner, SC de Mexico, S.A. de CV, owned by Alsea, S.A.B. de C.V., for a total
purchase price of $50.3 million, which included final working capital adjustments. This transaction resulted in a gain of $35.2
million, which was included in net interest income and other in the consolidated statements of earnings.
Note 7: Supplemental Balance Sheet Information (in millions)
Property, Plant and Equipment, net
Sep 28, 2014 Sep 29, 2013
Land $ 46.7 $ 47.0
Buildings 278.1 259.6
Leasehold improvements 4,858.4 4,431.6
Store equipment 1,493.3 1,353.9
Roasting equipment 410.9 397.9
Furniture, fixtures and other 1,078.1 949.7
Work in progress 415.6 342.4
Property, plant and equipment, gross 8,581.1 7,782.1
Accumulated depreciation (5,062.1)(4,581.6)
Property, plant and equipment, net $ 3,519.0 $ 3,200.5
Accrued Liabilities
Sep 28, 2014 Sep 29, 2013
Accrued compensation and related costs $ 437.9 $ 420.2
Accrued occupancy costs 119.8 120.7
Accrued taxes 272.0 125.0
Accrued dividend payable 239.8 195.8
Other 444.9 407.6
Total accrued liabilities $ 1,514.4 $ 1,269.3
Note 8: Other Intangible Assets and Goodwill
Indefinite-Lived Intangible Assets
(in millions) Sep 28, 2014 Sep 29, 2013
Trade names, trademarks and patents $ 197.5 $ 190.5
Other indefinite-lived intangible assets 15.1 15.1
Total indefinite-lived intangible assets $ 212.6 $ 205.6
Additional disclosure regarding changes in our intangible assets due to acquisitions is included at Note 2, Acquisitions and
Divestitures.