Starbucks 2015 Annual Report Download - page 68

million with Japanese yen converted into U.S. dollars at a reference conversion rate of 120.39 JPY to USD. However, we did
not complete the second tender offer nor obtain control of these shares until the settlement date of December 29, 2014, which
was the first day of our second quarter of fiscal 2015.
Subsequent to the completion of the second tender offer step, we commenced a cash-out procedure under Japanese law (the
"Cash-out") to acquire all remaining shares of Starbucks Japan (an approximate 6.3% interest). On March 26, 2015, we
obtained control of these shares resulting in 100% ownership of Starbucks Japan. The purchase price for the Cash-out was
¥13.5 billion, or $109 million. During the third quarter of fiscal 2015, we settled ¥9.6 billion, or $78 million, of the purchase
price in cash, with Japanese yen converted into U.S. dollars at a reference conversion rate of 123.87 JPY to USD. During the
fourth quarter of fiscal 2015, we settled ¥3.2 billion, or $26 million, of the purchase price in cash, with Japanese yen converted
into U.S. dollars at a reference conversion rate of 120.72 JPY to USD. The remaining ¥674 million ($6 million) was recorded in
accrued liabilities on our consolidated balance sheets and represents cash that was unclaimed by minority shareholders as of
September 27, 2015. There are no legal restrictions on the remaining unclaimed balance.
For the first quarter of fiscal 2015, net earnings attributable to noncontrolling interests in our consolidated statement of earnings
related to Starbucks Japan reflects the 21% of minority shareholders’ interests that we did not own as of the end of the first
quarter of fiscal 2015. For the second quarter of fiscal 2015, net earnings attributable to noncontrolling interests in our
consolidated statement of earnings related to Starbucks Japan reflects the approximate 6.3% of minority shareholders’ interests
that we did not obtain control of until March 26, 2015.
The following table shows the effects of the change in Starbucks ownership interest in Starbucks Japan on Starbucks equity:
Year Ended
Sep 27, 2015 Sep 28, 2014
Net earnings attributable to Starbucks $ 2,757.4 $ 2,068.1
Transfers (to)/from the noncontrolling interest:
Increase/(decrease) in additional paid-in capital for purchase of interest in subsidiary 1.7 —
Change from net earnings attributable to Starbucks and transfers (to)/from noncontrolling interest $ 2,759.1 $ 2,068.1
During the year ended September 27, 2015, we incurred approximately $11.9 million of acquisition-related costs, such as
regulatory, legal, and advisory fees, which we have recorded within unallocated corporate general and administrative expenses.
Fiscal 2014
During the fourth quarter of fiscal 2014, we sold our Australian company-operated retail store assets and operations to the
Withers Group, converting these operations to a fully licensed market, for a total of $15.9 million. This transaction resulted in a
pre-tax gain of $2.4 million, which was included in net interest income and other on our consolidated statements of earnings.
On an after-tax basis, this transaction resulted in a loss that was not material to our financial statements.
Fiscal 2013
During the 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 resulted in a gain of $45.9 million, which was included in net
interest income and other on our consolidated statements of earnings.
In the third quarter of fiscal 2013, we acquired 100% ownership of a coffee farm in Costa Rica for $8.1 million in cash. The fair
value of the net assets acquired on the acquisition date primarily comprised property, plant and equipment.
64 Starbucks Corporation 2015 Form 10-K