Starbucks 2015 Annual Report Download - page 20

Download and view the complete annual report

Please find page 20 of the 2015 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 108

  • 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
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

Failure to comply with applicable laws and changing legal and regulatory requirements could harm our business and
financial results.
Our policies and procedures are designed to comply with all applicable laws, accounting and reporting requirements, tax rules
and other regulations and requirements, including those imposed by the SEC, NASDAQ, and foreign countries, as well as
applicable trade, labor, healthcare, privacy, food, anti-bribery and corruption and merchandise laws. The complexity of the
regulatory environment in which we operate and the related cost of compliance are both increasing due to additional or
changing legal and regulatory requirements, our ongoing expansion into new markets and new channels, and the fact that
foreign laws occasionally conflict with domestic laws. In addition to potential damage to our reputation and brand, failure by us
or our business partners to comply with the various laws and regulations, as well as changes in laws and regulations or the
manner in which they are interpreted or applied, may result in litigation, civil and criminal liability, damages, fines and
penalties, increased cost of regulatory compliance and restatements of our financial statements.
Item 1B. Unresolved Staff Comments
None.
Item 2. Properties
The significant properties used by Starbucks in connection with its roasting, manufacturing, warehousing, distribution and
corporate administrative operations, serving all segments, are as follows:
Location Approximate Size
in Square Feet Purpose
Rancho Cucamonga, CA 265,000 Manufacturing
San Francisco, CA 79,000 Warehouse and distribution
Stratford, CT 81,000 Warehouse and distribution
Augusta, GA 131,000 Manufacturing
Minden, NV (Carson Valley) 360,000 Roasting and distribution
York, PA 888,000 Roasting, distribution and warehouse
Gaston, SC (Sandy Run) 117,000 Roasting and distribution
Lebanon, TN 680,000 Distribution center
Auburn, WA 491,000 Warehouse and distribution
Kent, WA 510,000 Roasting and distribution
Seattle, WA 1,004,000 Corporate administrative
Amsterdam, Netherlands 97,000 Roasting and distribution
Samutprakarn, Thailand 81,000 Warehouse and distribution
We own our roasting facilities and lease the majority of our warehousing and distribution locations. As of September 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 various locations managed by third-party warehouses.
Item 3. Legal Proceedings
See Note 15, Commitments and Contingencies, to the consolidated financial statements included in Item 8 of Part II of this 10-
K for information regarding certain legal proceedings in which we are involved.
Item 4. Mine Safety Disclosures
Not applicable.
16 Starbucks Corporation 2015 Form 10-K