Starbucks 2015 Annual Report Download - page 93

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Not applicable.
Item 9A. Controls and Procedures
Disclosure Controls and Procedures
We maintain disclosure controls and procedures that are designed to ensure that material information required to be disclosed in
our periodic reports filed or submitted under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is
recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Our disclosure
controls and procedures are also designed to ensure that information required to be disclosed in the reports we file or submit
under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and
principal financial officer, as appropriate to allow timely decisions regarding required disclosure.
During the fourth quarter of fiscal 2015, we carried out an evaluation, under the supervision and with the participation of our
management, including our chief executive officer and our chief financial officer, of the effectiveness of the design and
operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act.
Based upon that evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and
procedures were effective, as of the end of the period covered by this report (September 27, 2015).
There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the
Exchange Act) during our most recently completed fiscal quarter that materially affected or are reasonably likely to materially
affect internal control over financial reporting.
We acquired Starbucks Japan during the first quarter of fiscal 2015 (see Note 2, Acquisitions and Divestitures, to the
consolidated financial statements included in Item 8 of Part II of this 10-K). As permitted by the Securities and Exchange
Commission Staff interpretive guidance for newly acquired businesses, management excluded Starbucks Japan from its
evaluation of internal control over financial reporting as of September 27, 2015. We are in the process of documenting and
testing Starbucks Japan's internal controls over financial reporting and plan to incorporate Starbucks Japan 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, respectively, for the year ended September 27, 2015.
The certifications required by Section 302 of the Sarbanes-Oxley Act of 2002 are filed as exhibits 31.1 and 31.2, respectively,
to this 10-K.
Report of Management on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal
control over financial reporting is a process to provide reasonable assurance regarding the reliability of our financial reporting
for external purposes in accordance with accounting principles generally accepted in the United States of America. Internal
control over financial reporting includes maintaining records that in reasonable detail accurately and fairly reflect our
transactions; providing reasonable assurance that transactions are recorded as necessary for preparation of our financial
statements; providing reasonable assurance that receipts and expenditures are made in accordance with management
authorization; and providing reasonable assurance that unauthorized acquisition, use or disposition of company assets that
could have a material effect on our financial statements would be prevented or detected on a timely basis. Because of its
inherent limitations, internal control over financial reporting is not intended to provide absolute assurance that a misstatement
of our financial statements would be prevented or detected.
Management conducted an evaluation of the effectiveness of our internal control over financial reporting based on the
framework and criteria established in Internal Control — Integrated Framework (the "2013 Framework"), issued by the
Committee of Sponsoring Organizations of the Treadway Commission, excluding Starbucks Japan as mentioned above. This
evaluation included review of the documentation of controls, evaluation of the design effectiveness of controls, testing of the
operating effectiveness of controls and a conclusion on this evaluation. Based on this evaluation, management concluded that
our internal control over financial reporting was effective as of September 27, 2015.
Our internal control over financial reporting as of September 27, 2015, has been audited by Deloitte & Touche LLP, an
independent registered public accounting firm, as stated in their report which is included herein.
Starbucks Corporation 2015 Form 10-K 89