Starbucks 2015 Annual Report Download - page 12

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Competition
Our primary competitors for coffee beverage sales are specialty coffee shops and quick-service restaurants. In almost all
markets in which we do business, there are numerous competitors in the specialty coffee beverage business. We believe that our
customers choose among specialty coffee retailers primarily on the basis of product quality, service and convenience, as well as
price. We continue to experience direct competition from large competitors in the U.S. quick-service restaurant sector and the
U.S. ready-to-drink coffee beverage market, in addition to well-established companies in many international markets. We also
compete with restaurants and other specialty retailers for prime retail locations and qualified 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
compete indirectly against all other coffees and teas on the market.
Trademarks, Copyrights, Patents and Domain Names
Starbucks owns and has applied to register numerous trademarks and service marks in the U.S. and in other countries
throughout the world. Some of our trademarks, including Starbucks, the Starbucks logo, Tazo, Seattle’s Best Coffee, Teavana,
Frappuccino, Starbucks VIA, Evolution Fresh and La Boulange are of material importance. The duration of trademark
registrations varies from country to country. However, trademarks are generally valid and may be renewed indefinitely as long
as they are in use and/or their registrations are properly maintained.
We own numerous copyrights for items such as product packaging, promotional materials, in-store graphics and training
materials. We also hold patents on certain products, systems and designs. In addition, Starbucks has registered and maintains
numerous Internet domain names, including "Starbucks.com," "Starbucks.net," "Tazo.com," "Seattlesbest.com" and
"Teavana.com."
Seasonality and Quarterly Results
Our business is subject to seasonal fluctuations, including fluctuations resulting from the holiday season in December.
Excluding the impact of a $2.8 billion cash payment in the first quarter of fiscal 2014 related to the Kraft arbitration matter, our
cash flows from operations are considerably higher in the first fiscal quarter than the remainder of the year. This is largely
driven by cash received as Starbucks Cards are issued to and loaded by customers during the holiday season. Since revenues
from Starbucks Cards are recognized upon redemption and not when cash is loaded onto them, the impact of seasonal
fluctuations on the consolidated statements of earnings is much less pronounced. Quarterly results are also affected by the
timing of the opening of new stores and the closing of existing stores. For these reasons, results for any quarter are not
necessarily indicative of the results that may be achieved for the full fiscal year.
Employees
Starbucks employed approximately 238,000 people worldwide as of September 27, 2015. In the U.S., Starbucks employed
approximately 157,000 people, with approximately 150,000 in company-operated stores and the remainder in support facilities,
store development, and roasting, manufacturing, warehousing and distribution operations. Approximately 81,000 employees
were employed outside of the U.S., with approximately 78,000 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 62 chairman and chief executive officer
Kevin R. Johnson 55 president and chief operating officer
Cliff Burrows 56 group president, U.S. and Americas
John Culver 55 group president, China, Asia Pacific, Channel Development and
Emerging Brands
Scott Maw 48 executive vice president, chief financial officer
Lucy Lee Helm 58 executive vice president, general counsel and secretary
8 Starbucks Corporation 2015 Form 10-K