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70 Starbucks Corporation 2014 Form 10-K
The indentures under which the above notes were issued also require us to maintain compliance with certain covenants,
including limits on future liens and sale and leaseback transactions on certain material properties. As of September 28, 2014,
we were in compliance with each of these covenants.
Interest Expense
Interest expense, net of interest capitalized, was $64.1 million, $28.1 million, and $32.7 million in fiscal 2014, 2013 and 2012,
respectively. In fiscal 2014, 2013, and 2012, $6.2 million, $10.4 million, and $3.2 million, respectively, of interest was
capitalized for asset construction projects.
Note 10: Leases
Rent expense under operating lease agreements (in millions):
Fiscal Year Ended Sep 28, 2014 Sep 29, 2013 Sep 30, 2012
Minimum rent $ 907.4 $ 838.3 $ 759.0
Contingent rent 66.8 56.4 44.7
Total $ 974.2 $ 894.7 $ 803.7
Minimum future rental payments under non-cancelable operating leases as of September 28, 2014 (in millions):
Fiscal Year Ending
2015 $ 925.6
2016 826.6
2017 696.3
2018 556.3
2019 450.8
Thereafter 1,502.3
Total minimum lease payments $ 4,957.9
We have subleases related to certain of our operating leases. During fiscal 2014, 2013, and 2012, we recognized sublease
income of $13.3 million, $9.3 million, and $10.0 million, respectively.
Note 11: Equity
In addition to 1.2 billion shares of authorized common stock with $0.001 par value per share, we have authorized 7.5 million
shares of preferred stock, none of which was outstanding at September 28, 2014.
Included in additional paid-in capital in our consolidated 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 of $769.8 million, and 10.8 million shares at a total cost of
$544.1 million for the the years ended September 28, 2014 and September 29, 2013, respectively. As of September 28, 2014,
15.9 million shares remained available for repurchase under current authorizations.