Starbucks 2015 Annual Report Download

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Fiscal 2015 Annual Report

Table of contents

  • Page 1
    Fiscal 2015 Annual Report

  • Page 2

  • Page 3
    ...market value of the voting stock held by non-affiliates of the registrant as of the last business day of the registrant's most recently completed second fiscal quarter, based upon the closing sale price of the registrant's common stock on March 29, 2015 as reported on the NASDAQ Global Select Market...

  • Page 4
    ...Consolidated Financial Statements Report of Independent Registered 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...

  • Page 5
    ... undue reliance on forward-looking statements, which speak only as of the date of this Annual Report on Form 10-K. These forward-looking statements are all based on currently available operating, financial and competitive information and are subject to various risks and uncertainties. Our actual...

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

  • Page 7
    ... 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 standing as one...

  • Page 8
    ... 28, 2014 Opened Closed Transfers Net Stores Open as of Sep 27, 2015 Americas: U.S. Canada Brazil Puerto Rico Total Americas China/Asia Pacific : Japan China Thailand Singapore Total China/Asia Pacific EMEA: U.K. Germany France Switzerland Austria Netherlands Total EMEA All Other Segments: Teavana...

  • Page 9
    .... Employees working in licensed retail locations are required to follow our detailed store operating procedures and attend training classes similar to those given to employees in company-operated stores. For Teavana® and Seattle's Best Coffee®, as well as Starbucks® stores within certain markets...

  • Page 10
    ... single-serve coffee and 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-, Seattle's Best Coffee- and Tazo-branded products through licensing agreements...

  • Page 11
    Foodservice Revenues from foodservice accounts comprised 3% of total net revenues in fiscal 2015. 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 ...

  • Page 12
    ... personnel to operate both new and existing stores. Our coffee and tea products sold through our Channel Development segment compete directly against specialty coffees and teas sold through grocery stores, warehouse clubs, specialty retailers, convenience stores, and U.S. foodservice accounts and...

  • Page 13
    ...officer since February 2014. From October 2012 to February 2014, he served as senior vice president, Corporate Finance and as corporate controller from August 2011 to October 2012. Prior to joining Starbucks, Mr. Maw served as chief financial officer of SeaBright Insurance Company from February 2010...

  • Page 14
    ... trade down to Starbucks or competitors' lower priced products as a result of job losses, foreclosures, bankruptcies, increased fuel and energy costs, higher interest rates, higher taxes and reduced access to credit. Decreases in customer traffic and/or average value per transaction will negatively...

  • Page 15
    ... our customers and employees. Our information technology systems also contain Starbucks proprietary and other confidential information related to our business, such as business plans, product development initiatives and designs. Similar to many other retail companies and because of the prominence of...

  • Page 16
    ... 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 technology, including mobile payments and ordering apps...

  • Page 17
    ...sufficient numbers of key employees, to maintain an effective system of internal controls for a globally dispersed enterprise and to train employees worldwide to deliver a consistently high quality product and customer experience. Furthermore, if we are not successful in implementing these strategic...

  • Page 18
    ...negatively impact net revenues, operating income and earnings per share; and • disruption in energy supplies affecting our markets. Moreover, many of the foregoing risks are particularly acute in developing countries, which are important to our long-term growth prospects. • Increases in the cost...

  • Page 19
    ... for our financial performance will likely adversely affect the market price and volatility of our stock. Failure to meet market expectations going forward, particularly with respect to operating margins, earnings per share, comparable store sales, operating cash flows, and net revenues, will likely...

  • Page 20
    ... 27, 2015, Starbucks had 12,235 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
    ... condition, capital expenditure requirements, and other factors 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 27, 2015: Total Number of Shares...

  • Page 22
    ... investment of $100 on 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. Oct 3, 2010 Oct 2, 2011 Sep 30, 2012 Sep 29, 2013 Sep 28, 2014 Sep 27, 2015 Starbucks Corporation...

  • Page 23
    ... (2) Net earnings attributable to Starbucks 2,757.4 EPS - diluted(2) 1.82 Cash dividends declared per share 0.680 Net cash provided by operating activities 3,749.1 Capital expenditures (additions to property, plant and equipment) 1,303.7 Balance Sheet Total assets Long-term debt (including current...

  • Page 24
    Comparable Store Sales: Sep 27, 2015 (52 Wks) Sep 28, 2014 (52 Wks) Sep 29, 2013 (52 Wks) Sep 30, 2012 (52 Wks) Oct 2, 2011 (52 Wks) Fiscal Year Ended Percentage change in comparable store sales(3) Americas Sales growth Change in transactions Change in ticket China/Asia Pacific Sales growth Change...

  • Page 25
    ... of fiscal 2012 and in the second and fourth quarters of fiscal 2014. Includes 337 Teavana® stores acquired in the second quarter of fiscal 2013. Includes the closure of 475 licensed Seattle's Best Coffee® locations in Borders Bookstores during fiscal 2011. Starbucks Corporation 2015 Form 10...

  • Page 26
    ... revenue growth and moderate margin expansion through new stores and leveraging investments in both our store partners (employees) and our digital platforms, such as Mobile Order and Pay. Our fiscal 2015 China/Asia Pacific segment results reflect the impact of fully consolidating Starbucks Japan...

  • Page 27
    ... fiscal 2016. The Channel Development segment revenues grew 12% to $1.7 billion in fiscal 2015, primarily due to increased sales of premium single-serve products, driven by sales of Starbucks- and Tazo-branded K-Cup® portion packs, and improved packaged coffee sales. Operating margin increased 180...

  • Page 28
    ... sales of premium single-serve products (approximately $116 million), U.S. packaged coffee (approximately $55 million) and foodservice sales (approximately $40 million). Operating Expenses Sep 27, 2015 Sep 28, 2014 Sep 27, 2015 % of Total Net Revenues Sep 28, 2014 Fiscal Year Ended Cost of sales...

  • Page 29
    ...of fiscal 2015 on the long-term debt we issued in December of fiscal 2014 as well as the reclassification of $2 million from accumulated other comprehensive income to interest expense related to remaining unrecognized losses from interest rate contracts associated with the 2017 notes redeemed in the...

  • Page 30
    ... 10 basis points), offset by incremental costs from investments in our existing store portfolio (approximately 10 basis points). The combination of these changes resulted in an overall increase in operating margin of 80 basis points over fiscal 2014. 26 Starbucks Corporation 2015 Form 10-K

  • Page 31
    ... fully consolidating Starbucks Japan due to the ownership change from an equity method joint venture to a company-operated market since the acquisition date of October 31, 2014. Under the joint venture model, we recognized royalties and product sales within revenue and related product cost of sales...

  • Page 32
    ...points of margin expansion driven by the other items discussed above. EMEA Sep 27, 2015 Sep 28, 2014 Sep 27, 2015 Sep 28, 2014 Fiscal Year Ended As a % of EMEA Total Net Revenues Net revenues: Company-operated stores Licensed stores Foodservice Total net revenues Cost of sales including occupancy...

  • Page 33
    ...in operating margin of 460 basis points over fiscal 2014. Channel Development Sep 27, 2015 Sep 28, 2014 Sep 27, 2015 Sep 28, 2014 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...

  • Page 34
    ... expenses increased $27 million, primarily due to an increase in cost of sales. RESULTS OF OPERATIONS - FISCAL 2014 COMPARED TO FISCAL 2013 Consolidated results of operations (in millions): Revenues Sep 28, 2014 Sep 29, 2013 % Change Fiscal Year Ended Net revenues: Company-operated stores Licensed...

  • Page 35
    ..., 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/(credit) Total operating expenses Income...

  • Page 36
    ... 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. 32 Starbucks Corporation 2015 Form...

  • Page 37
    ... Sep 29, 2013 Sep 28, 2014 Sep 29, 2013 Fiscal Year Ended As a % of Americas Total Net Revenues Net revenues: Company-operated stores Licensed stores Foodservice and other Total net revenues Cost of sales including occupancy costs Store operating expenses Other operating expenses Depreciation and...

  • Page 38
    ... 2014 Sep 29, 2013 Sep 28, 2014 Sep 29, 2013 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...

  • Page 39
    ...revenues decreased 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 2015...

  • Page 40
    ... 29, 2013 Sep 28, 2014 Sep 29, 2013 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
    ... 28, 2014, respectively. We actively manage our cash and investments in order to internally fund operating needs, make scheduled interest and principal payments on our borrowings, make acquisitions, and return cash to shareholders through common stock cash dividend payments and share repurchases...

  • Page 42
    ... under the credit facility and commercial paper program, to invest in our core businesses, including capital expenditures, new product innovations, related marketing support and partner investments, return cash to shareholders through common stock cash dividend payments and share repurchases, as...

  • Page 43
    ... expenses, cash requirements for fiscal 2016 are expected to consist primarily of capital expenditures for new company-operated stores; remodeling and refurbishment of, and equipment upgrades for, existing company-operated stores; systems and technology investments in our stores and in the support...

  • Page 44
    ... lease obligations, excluding any taxes, insurance and other related expenses. Amounts consist of build-to-suit lease arrangements primarily related to the Starbucks Japan acquisition, which are described further in Note 2, Acquisitions and Divestitures, to the consolidated financial statements...

  • Page 45
    ... to manage our commodity price risk exposure. The following table summarizes the potential impact as of September 27, 2015 to Starbucks future net earnings and other comprehensive income ("OCI") from changes in commodity prices. The information provided below relates only to the hedging instruments...

  • Page 46
    ... objective of these investments is to preserve capital and liquidity. Available-for-sale securities are recorded on 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...

  • Page 47
    ... cash flows and asset fair 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...

  • Page 48
    ...success of strategic initiatives, changes in economic conditions, changes in our operating performance, and changes in our business strategies, including retail initiatives and international expansion. For fiscal 2015, we determined the fair value of our material reporting units and intangible asset...

  • Page 49
    ... and 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. Starbucks Corporation 2015...

  • Page 50
    ... STARBUCKS CORPORATION CONSOLIDATED STATEMENTS OF EARNINGS (in millions, except per share data) Sep 27, 2015 Sep 28, 2014 Sep 29, 2013 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 51
    STARBUCKS CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) Sep 27, 2015 Sep 28, 2014 Sep 29, 2013 Net earnings including noncontrolling interests Other comprehensive income/(loss), net of tax: Unrealized holding gains/(losses) on available-for-sale securities Tax (expense)/...

  • Page 52
    STARBUCKS CORPORATION CONSOLIDATED BALANCE SHEETS (in millions, except per share data) Sep 27, 2015 Sep 28, 2014 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 53
    ... Stock-based compensation Excess tax benefit on share-based awards Other Cash provided/(used) by changes in operating assets and liabilities: Accounts receivable Inventories Accounts payable Accrued litigation charge Income taxes payable, net Accrued liabilities and insurance reserves Stored value...

  • Page 54
    50 Common Stock Shares Amount Additional Paidin Capital Retained Earnings Shareholders' Equity Noncontrolling Interest Accumulated Other Comprehensive Income/(Loss) Total STARBUCKS CORPORATION CONSOLIDATED STATEMENTS OF EQUITY (in millions, except per share data) Balance, September 30, 2012 749.3 ...

  • Page 55
    ...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 Taxes Earnings per Share Commitments and Contingencies Segment Reporting Selected Quarterly Financial...

  • Page 56
    STARBUCKS CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Fiscal Years ended September 27, 2015, September 28, 2014 and September 29, 2013 Note 1: Summary of Significant Accounting Policies Description of Business We purchase and roast high-quality coffees that we sell, along with ...

  • Page 57
    ... and cost method investments, and other assets. We determine the fair value of these items using Level 3 inputs, as described in the related sections below. Derivative Instruments We manage our exposure to various risks within our consolidated financial statements according to a market price risk...

  • Page 58
    ... designated as hedging instruments for accounting purposes. The change in the fair value of these contracts is immediately recognized in net interest income and other on our consolidated statements of earnings. Normal Purchase Normal Sale We enter into fixed-price and price-to-be-fixed green coffee...

  • Page 59
    ... and equipment, which includes assets under capital leases, are carried at cost less accumulated depreciation. Cost includes all direct costs necessary to acquire and prepare assets for use, including internal labor and overhead in some cases. Depreciation is computed using the straight-line method...

  • Page 60
    ...and single-serve coffee and tea products to grocery, warehouse clubs and specialty retail stores, sales to our national foodservice accounts, and revenues from sales of products to and license fee revenues from manufacturers that produce and market Starbucks-, Seattle's Best Coffee- and Tazo-branded...

  • Page 61
    ... in select Starbucks® stores, online, and through CPG channels. After accumulating a certain number of Stars, the customer earns a reward that can be redeemed for free product that, regardless of where the related Stars were earned within that country, will be honored at company-operated stores and...

  • Page 62
    ... a number of assumptions, including store closing costs, cost inflation rates and discount rates, and accrete to its projected future value over time. The capitalized asset is depreciated using the same depreciation convention as leasehold improvement assets. Upon satisfaction of the ARO conditions...

  • Page 63
    ... new information becomes available. Starbucks recognizes interest and penalties related to income tax matters in income tax expense on our consolidated statements of earnings. Accrued interest and penalties are included within the related tax liability on our consolidated balance sheets. Stock Split...

  • Page 64
    ... have a material impact on our consolidated financial statements. In July 2015, the FASB issued guidance on the subsequent measurement of inventory, which changes the measurement from lower of cost or market to lower of cost and net realizable value. The guidance will require prospective application...

  • Page 65
    ...equivalents Accounts receivable, net Inventories Prepaid expenses and other current assets Deferred income taxes, net (current) Property, plant and equipment Other long-term assets Other intangible assets Goodwill Total assets acquired Accounts payable Accrued liabilities Stored value card liability...

  • Page 66
    ... 31, 2014 acquisition date. We recorded a net reduction of rent expense of $0.8 million for the year ended September 27, 2015, in connection with the leases acquired. Additionally, we acquired a number of build-to-suit lease arrangements that are accounted for as financing leases. Starbucks Japan is...

  • Page 67
    ... performance of stores, local market economics and the business environment impacting the stores' performance. The discount rate applied was based on Starbucks Japan's weighted-average cost of capital and included a company-specific risk premium. The market approach fair value measurement was...

  • Page 68
    ...fourth quarter of fiscal 2013, we sold our 82% interest in Starbucks Coffee Chile S.A. to our joint venture partner Alsea, S.A.B. de C.V., converting this market to a 100% licensed market, for a total purchase price of $68.6 million, which includes final working capital adjustments. This transaction...

  • Page 69
    ... primarily consisting of accounts payable, accrued payroll-related liabilities and other accrued operating expenses. The intangible assets acquired as part of the transaction include the Teavana trade name, tea blends and non-compete agreements. The Teavana trade name was valued at $105.5 million...

  • Page 70
    ... interest expense on our consolidated statements of earnings. This difference varies over time and is driven by a number of market factors, including relevant interest rate differentials and foreign exchange rates. These swaps have been designated as cash flow hedges and mature in September 2016 and...

  • Page 71
    ... losses on derivative contracts not designated as hedging instruments recognized in earnings (in millions): Gains/(Losses) Recognized in Earnings Sep 27, 2015 Sep 28, 2014 Foreign currency Coffee Dairy Diesel fuel $ 27.1 $ (0.2) (3.8) (9.0) 1.7 - 12.6 (1.0) Starbucks Corporation 2015 Form 10...

  • Page 72
    Notional amounts of outstanding derivative contracts (in millions): Sep 27, 2015 Sep 28, 2014 Interest rates Cross-currency swaps Foreign currency - other Coffee Dairy Diesel fuel $ 125 717 577 38 43 14 $ - - 542 45 24 17 The fair values of our derivative assets and liabilities are included in...

  • Page 73
    ... at Reporting Date Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at Sep 27, 2015 Assets: Cash and cash equivalents Short-term investments: Available-for-sale securities Corporate...

  • Page 74
    ... at Reporting Date Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at Sep 28, 2014 Assets: Cash and cash equivalents Short-term investments: Available-for-sale securities Corporate...

  • Page 75
    ...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 27, 2015 Sep 28, 2014 Coffee: Unroasted Roasted Other merchandise held for sale Packaging and other supplies Total...

  • Page 76
    ... from our equity method investments is included in income from equity investees on our consolidated statements of earnings. Also included in this line item is our proportionate share of gross profit resulting from coffee and other product sales to, and royalty and license fee revenues generated from...

  • Page 77
    ... income and other on our consolidated statements of earnings. Note 7: Supplemental Balance Sheet Information (in millions) Property, Plant and Equipment, net Sep 27, 2015 Sep 28, 2014 Land Buildings Leasehold improvements Store equipment Roasting equipment Furniture, fixtures and other Work...

  • Page 78
    ...Amount Gross Carrying Amount Sep 28, 2014 Accumulated Amortization Net Carrying Amount (in millions) Acquired and reacquired rights Acquired trade secrets and processes Licensing agreements Trade names, trademarks and patents Other finite-lived intangible assets Total finite-lived intangible assets...

  • Page 79
    ...commercial paper program may be used for working capital needs, capital expenditures and other corporate purposes, including share repurchases, business expansion, payment of cash dividends on our common stock or the financing of possible acquisitions. In the fourth quarter of fiscal 2015, we issued...

  • Page 80
    ...asset construction projects. Note 10: Leases Rent expense under operating lease agreements (in millions): Fiscal Year Ended Sep 27, 2015 Sep 28, 2014 Sep 29, 2013 Minimum rent Contingent rent Total $ $ 1,026.3 111.5 1,137.8 $ $ 907.4 66.8 974.2 $ $ 838.3 56.4 894.7 76 Starbucks Corporation...

  • Page 81
    ...was outstanding at September 27, 2015. Included in additional paid-in capital in our consolidated statements of equity as of September 27, 2015 and September 28, 2014 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...

  • Page 82
    ... currency/coffee hedges Gains/(losses) on net investment hedges Translation adjustment(2) Starbucks Japan Other (1) $ 3.2 46.2 14.0 8.6 7.2 (7.2) (7.1) 64.9 $ Interest expense Interest income and other, net Revenue (10.0) Cost of sales including occupancy costs - Gain resulting from acquisition...

  • Page 83
    ...27, 2015 Sep 28, 2014 Sep 29, 2013 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...

  • Page 84
    ...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 0.5 million in fiscal 2015. 80 Starbucks Corporation 2015 Form 10...

  • Page 85
    ... 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 deferrals made under this plan is not material. Defined Contribution Plans We maintain voluntary defined contribution...

  • Page 86
    ...27, 2015 Sep 28, 2014 Total Sep 29, 2013 Litigation charge 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 Gain resulting from acquisition of...

  • Page 87
    ...27, 2015 Sep 28, 2014 Deferred tax assets: Property, plant and equipment Accrued occupancy costs Accrued compensation and related costs Other accrued liabilities Asset retirement obligation asset Stored value card liability Asset impairments Tax credits Stock-based compensation Net operating losses...

  • Page 88
    ...adjusted to reflect this stock split. Calculation of net earnings per common share ("EPS") - basic and diluted (in millions, except EPS): Fiscal Year Ended Sep 27, 2015 Sep 28, 2014 Sep 29, 2013 Net earnings attributable to Starbucks Weighted average common shares outstanding (for basic calculation...

  • Page 89
    ... income, than our Americas operations. The Americas and EMEA segments also include certain foodservice accounts, primarily in Canada and the U.K. Channel Development operations sell a selection of packaged coffees and single-serve products, as well as a selection of premium Tazo® teas globally...

  • Page 90
    ...Operating income/(loss) Total assets Fiscal 2013 Total net revenues Depreciation and amortization expenses Income from equity investees Operating income/(loss) Total assets 86 Starbucks Corporation 2015 Form 10-K Americas China / Asia Pacific EMEA Channel Development All Other Segments Segment Total...

  • Page 91
    ... with Kraft. Note 17: Selected Quarterly Financial Information (unaudited; in millions, except EPS) First Quarter Second Quarter Third Quarter Fourth Quarter Full Year Fiscal 2015: Net revenues Operating income Net earnings attributable to Starbucks EPS - diluted(1) Fiscal 2014: Net revenues...

  • Page 92
    ... 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 27, 2015 and September 28, 2014, and the related consolidated statements of...

  • Page 93
    ...in our evaluation of internal controls over financial reporting beginning in the first quarter of fiscal 2016. Starbucks Japan contributed $1.6 billion to our consolidated total assets as of September 27, 2015, and $1.1 billion and $159.1 million to our consolidated net revenues and operating income...

  • Page 94
    ... Coffee Japan, Ltd. ("Starbucks Japan") from its assessment of internal control over financial reporting. Starbucks Japan was acquired on October 31, 2014, and its financial statements contributed $1.6 billion, $1.1 billion, and $159.1 million to the consolidated entity's total assets, net revenues...

  • Page 95
    Item 9B. Other Information None. Starbucks Corporation 2015 Form 10-K 91

  • Page 96
    ... 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 97
    ... 2014, and September 29, 2013; • 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 98
    ... of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. STARBUCKS CORPORATION By: /s/ Howard Schultz Howard Schultz chairman and chief executive officer November 12, 2015 POWER OF ATTORNEY Know all persons by these presents...

  • Page 99
    ... 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 2015 Form 10-K 95

  • Page 100
    ... Exhibit Number Exhibit Description Form File No. Date of Filing Exhibit Number Filed Herewith 2.1 3.1 3.2 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 10.1* 10.2* 10.3* Agreement and Plan of Merger, dated as of November 14, 2012, among Starbucks Corporation, Taj Acquisition Corp. and Teavana...

  • Page 101
    ... by Reference Exhibit Number Exhibit Description Form File No. Date of Filing Exhibit Number Filed Herewith 10.3.1* 10.4* 10.5 10.6* 10.7* 10.8* 10.9* 10.10* 10.11* 10.12* 10.13* 10.14* 10.15* 10.16* Starbucks Corporation 1991 Company-Wide Stock Option Plan - Rules of the UK Sub-Plan, as...

  • Page 102
    ... to the Starbucks Corporation 2005 Long-Term Equity Incentive Plan Form of Restricted Stock Unit Grant Agreement under the 2005 NonEmployee Director Sub-Plan to the Starbucks Corporation 2005 LongTerm Equity Incentive Plan Credit Agreement dated November 6, 2015 among Starbucks Corporation, Bank of...

  • Page 103
    ...Equity, and (vi) Notes to Consolidated Financial Statements - - - __ - - - - __ - - - - __ - - - - __ - X X X X X - - - - X - - - - 101 - - - - X * Denotes a management contract or compensatory plan or arrangement. **Furnished herewith. Starbucks Corporation 2015 Form 10-K 99

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