Starbucks 2015 Annual Report Download - page 43

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2015 and is recorded in accrued liabilities on our consolidated balance sheets. There are no legal restrictions on the remaining
unclaimed balance.
We consider the majority of undistributed earnings of our foreign subsidiaries and equity investees as of September 27, 2015 to
be indefinitely reinvested and, accordingly, no U.S. income and foreign withholding taxes have been provided on such
earnings. We have not, nor do we anticipate the need to, repatriate funds to the U.S. to satisfy domestic liquidity needs;
however, in the event that we need to repatriate all or a portion of our foreign cash to the U.S., we would be subject to
additional U.S. income taxes, which could be material. We do not believe it is practicable to calculate the potential tax impact
of repatriation, as there is a significant amount of uncertainty around the calculation, including the availability and amount of
foreign tax credits at the time of repatriation, tax rates in effect, and other indirect tax consequences associated with
repatriation.
During each of the first three quarters of fiscal 2014, we declared and paid a cash dividend to shareholders of $0.13 per share.
In the fourth quarter of fiscal 2014 and each of the first three quarters of fiscal 2015 we declared a cash dividend of $0.16 per
share. Cash returned to shareholders through dividends in fiscal 2015 and 2014 totaled $958.7 million and $783.1 million,
respectively. In the fourth quarter of fiscal 2015, we declared a cash dividend of $0.20 per share to be paid on November 27,
2015 with an expected payout of approximately $297.0 million.
During fiscal years 2015 and 2014, we repurchased 29.0 million and 21.0 million shares of common stock, respectively, or $1.4
billion and $769.8 million, respectively, under share repurchase authorizations. On July 23, 2015, we announced that our Board
of Directors approved an increase of 50 million shares to our ongoing share repurchase program. The number of remaining
shares authorized for repurchase at September 27, 2015 totaled 52.7 million.
Other than normal operating 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 infrastructure; and additional
investments in manufacturing capacity. Total capital expenditures for fiscal 2016 are expected to be approximately $1.4 billion.
Cash Flows
Cash provided by operating activities was $3.7 billion for fiscal 2015, compared to $607.8 million for fiscal 2014. The increase
was driven by lapping the prior year payment of $2.8 billion for the Kraft arbitration matter. The remaining change of $377
million was primarily due to increased earnings, partially offset by changes in working capital accounts mainly due to timing.
Cash used by investing activities totaled $1.5 billion for fiscal 2015, compared to $817.7 million for fiscal 2014. The change
was primarily due to the use of cash to acquire Sazaby's 39.5% ownership interest in Japan in the first quarter of fiscal 2015, as
well as lapping the liquidation of a significant portion of our offshore investment portfolio in the fourth quarter of fiscal 2014 in
order to fund the acquisition of Starbucks Japan. Additions to property, plant and equipment also contributed, driven by
increased store renovations and additions for new store openings.
Cash used by financing activities for fiscal 2015 totaled $2.3 billion, compared to $623.3 million for fiscal 2014. The change
was primarily due to increased cash returned to shareholders through higher share repurchases and dividend payments
compared to fiscal 2014 and cash used to redeem our 2017 notes, as discussed above, as well as cash used to fund the second
tender offer step and the cash-out procedure of the Starbucks Japan acquisition in fiscal 2015. These changes were partially
offset by incremental proceeds from the long-term debt we issued in June of fiscal 2015 over the prior year's issuance.
Starbucks Corporation 2015 Form 10-K 39