Oct 1, 2017 | Oct 2, 2016 | ||||||
Equity method investments | $ | 432.8 | $ | 305.7 | |||
Cost method investments | 48.8 | 48.8 | |||||
Total | $ | 481.6 | $ | 354.5 |
Oct 1, 2017 | Oct 2, 2016 | ||||||
Equity method investments | $ | 432.8 | $ | 305.7 | |||
Cost method investments | 48.8 | 48.8 | |||||
Total | $ | 481.6 | $ | 354.5 |
Oct 1, 2017 | Oct 2, 2016 | Stated Interest Rate | Effective Interest Rate (1) | |||||||||||||||
Issuance | Face Value | Estimated Fair Value | Face Value | Estimated Fair Value | ||||||||||||||
2016 notes | $ | — | $ | — | $ | 400.0 | $ | 400 | 0.875 | % | 0.941 | % | ||||||
2018 notes | 350.0 | 352 | 350.0 | 357 | 2.000 | % | 2.012 | % | ||||||||||
2021 notes | 500.0 | 501 | 500.0 | 511 | 2.100 | % | 2.293 | % | ||||||||||
2021 notes | 250.0 | 250 | 250.0 | 255 | 2.100 | % | 1.600 | % | ||||||||||
2022 notes | 500.0 | 508 | 500.0 | 526 | 2.700 | % | 2.819 | % | ||||||||||
2023 notes | 750.0 | 806 | 750.0 | 839 | 3.850 | % | 2.859 | % | ||||||||||
2024 notes(2) | 755.3 | 760 | — | — | 0.372 | % | 0.462 | % | ||||||||||
2026 notes | 500.0 | 481 | 500.0 | 509 | 2.450 | % | 2.511 | % | ||||||||||
2045 notes | 350.0 | 381 | 350.0 | 417 | 4.300 | % | 4.348 | % | ||||||||||
Total | 3,955.3 | 4,039 | 3,600.0 | 3,814 | ||||||||||||||
Aggregate debt issuance costs and unamortized premium/(discount), net | (17.5 | ) | (14.8 | ) | ||||||||||||||
Hedge accounting fair value adjustment(3) | (5.2 | ) | — | |||||||||||||||
Total | $ | 3,932.6 | $ | 3,585.2 |
(1) | Includes the effects of the amortization of any premium or discount and any gain or loss upon settlement of related treasury locks or forward-starting interest rate swaps utilized to hedge the interest rate risk prior to the debt issuance. |
Fiscal Year | Total | ||
2018 | $ | — | |
2019 | 350.0 | ||
2020 | — | ||
2021 | 750.0 | ||
2022 | 500.0 | ||
Thereafter | 2,355.3 | ||
Total | $ | 3,955.3 |
Net Gains/(Losses) Included in AOCI | Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | Contract Remaining Maturity (Months) | |||||||||||||||
Oct 1, 2017 | Oct 2, 2016 | Sep 27, 2015 | |||||||||||||||
Cash Flow Hedges: | |||||||||||||||||
Interest rates | $ | 17.6 | $ | 20.5 | $ | 30.1 | $ | 3.0 | 0 | ||||||||
Cross-currency swaps | (6.0 | ) | (7.7 | ) | (27.8 | ) | — | 86 | |||||||||
Foreign currency - other | (9.1 | ) | (0.4 | ) | 29.0 | (5.8 | ) | 36 | |||||||||
Coffee | (6.6 | ) | (1.6 | ) | (5.7 | ) | (6.6 | ) | 4 | ||||||||
Net Investment Hedges: | |||||||||||||||||
Foreign currency | 16.2 | 1.3 | 1.3 | 0.1 | 0 | ||||||||||||
Foreign currency debt | (2.2 | ) | — | — | — | 79 |
Year Ended | |||||||||||||||||||||||
Gains/(Losses) Recognized in OCI Before Reclassifications | Gains/(Losses) Reclassified from AOCI to Earnings | ||||||||||||||||||||||
Oct 1, 2017 | Oct 2, 2016 | Sep 27, 2015 | Oct 1, 2017 | Oct 2, 2016 | Sep 27, 2015 | ||||||||||||||||||
Cash Flow Hedges: | |||||||||||||||||||||||
Interest rates | $ | — | $ | (10.3 | ) | $ | (6.8 | ) | $ | 4.8 | $ | 5.0 | $ | 3.2 | |||||||||
Cross-currency swaps | 59.5 | (75.7 | ) | 11.4 | 57.2 | (101.1 | ) | 46.2 | |||||||||||||||
Foreign currency - other | 1.8 | (25.4 | ) | 52.0 | 11.4 | 19.1 | 26.1 | ||||||||||||||||
Coffee | (8.1 | ) | 1.7 | (9.0 | ) | (2.7 | ) | (2.8 | ) | (3.5 | ) | ||||||||||||
Net Investment Hedges: | |||||||||||||||||||||||
Foreign currency | 23.6 | — | 4.3 | — | — | 7.2 | |||||||||||||||||
Foreign currency debt | (3.5 | ) | — | — | — | — | — |
Gains/(Losses) Recognized in Earnings | |||||||||||
Oct 1, 2017 | Oct 2, 2016 | Sep 27, 2015 | |||||||||
Non-Designated Derivatives: | |||||||||||
Foreign currency - other | $ | 4.6 | $ | (5.7 | ) | $ | 27.1 | ||||
Dairy | — | (5.5 | ) | (3.8 | ) | ||||||
Diesel fuel and other commodities | 1.3 | (0.2 | ) | (9.0 | ) | ||||||
Designated Fair Value Hedging Instruments: | |||||||||||
Interest rate swap | (5.2 | ) | — | — |
Oct 1, 2017 | Oct 2, 2016 | ||||||
Interest rate swap | $ | 750 | $ | — | |||
Cross-currency swaps | 514 | 660 | |||||
Foreign currency - other | 901 | 688 | |||||
Coffee | — | 7 | |||||
Dairy | 14 | 76 | |||||
Diesel fuel and other commodities | 41 | 46 |
Derivative Assets | Derivative Liabilities | ||||||||||||||
Oct 1, 2017 | Oct 2, 2016 | Oct 1, 2017 | Oct 2, 2016 | ||||||||||||
Designated Derivative Instruments: | |||||||||||||||
Cross-currency swaps | $ | 12.4 | $ | — | $ | 9.8 | $ | 57.0 | |||||||
Foreign currency - other | 7.7 | 20.8 | 20.8 | 24.0 | |||||||||||
Coffee | — | 1.8 | — | — | |||||||||||
Net investment hedges | 0.3 | — | — | — | |||||||||||
Interest rate swap | — | — | 3.8 | — | |||||||||||
Non-designated Derivative Instruments: | |||||||||||||||
Foreign currency | 15.8 | 6.2 | 1.4 | 6.5 | |||||||||||
Dairy | — | 1.5 | 2.4 | 1.6 | |||||||||||
Diesel fuel and other commodities | 1.6 | 3.8 | 0.3 | 0.5 |
Fiscal Year Ended | Oct 1, 2017 | Oct 2, 2016 | Sep 27, 2015 | ||||||||
Options | $ | 44.3 | $ | 42.7 | $ | 37.8 | |||||
RSUs | 131.7 | 175.4 | 172.0 | ||||||||
Total stock-based compensation expense recognized in the consolidated statements of earnings | $ | 176.0 | $ | 218.1 | $ | 209.8 | |||||
Total related tax benefit | $ | 57.6 | $ | 73.0 | $ | 72.3 | |||||
Total capitalized stock-based compensation included in net property, plant and equipment and inventories on the consolidated balance sheets | $ | 1.9 | $ | 1.5 | $ | 1.9 |
Employee Stock Options Granted During the Period | |||||||||||
Fiscal Year Ended | 2017 | 2016 | 2015 | ||||||||
Expected term (in years) | 3.9 | 3.9 | 4.2 | ||||||||
Expected stock price volatility | 21.6 | % | 23.9 | % | 22.3 | % | |||||
Risk-free interest rate | 1.5 | % | 1.2 | % | 1.1 | % | |||||
Expected dividend yield | 1.8 | % | 1.3 | % | 1.6 | % | |||||
Weighted average grant price | $ | 56.12 | $ | 60.20 | $ | 39.89 | |||||
Estimated fair value per option granted | $ | 8.56 | $ | 10.54 | $ | 6.58 |
Shares Subject to Options | Weighted Average Exercise Price per Share | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||
Outstanding, October 2, 2016 | 31.3 | $ | 30.59 | 5.8 | $ | 771 | ||||||
Granted | 7.1 | 56.12 | ||||||||||
Exercised | (5.3 | ) | 23.16 | |||||||||
Expired/forfeited | (1.7 | ) | 51.13 | |||||||||
Outstanding, October 1, 2017 | 31.4 | 36.51 | 5.8 | 589 | ||||||||
Exercisable, October 1, 2017 | 19.7 | 26.42 | 4.2 | 552 | ||||||||
Vested and expected to vest, October 1, 2017 | 30.0 | 35.60 | 5.6 | 587 |
Number of Shares | Weighted Average Grant Date Fair Value per Share | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||
Nonvested, October 2, 2016 | 8.3 | $ | 46.15 | 0.9 | $ | 448 | ||||||
Granted | 5.1 | 54.30 | ||||||||||
Vested | (4.3 | ) | 42.09 | |||||||||
Forfeited/canceled | (1.5 | ) | 51.05 | |||||||||
Nonvested, October 1, 2017 | 7.6 | 52.06 | 0.9 | 410 |
Fiscal Year Ended | Oct 1, 2017 | Oct 2, 2016 | Sep 27, 2015 | ||||||||
Net earnings attributable to Starbucks | $ | 2,884.7 | $ | 2,817.7 | $ | 2,757.4 | |||||
Weighted average common shares outstanding (for basic calculation) | 1,449.5 | 1,471.6 | 1,495.9 | ||||||||
Dilutive effect of outstanding common stock options and RSUs | 12.0 | 15.1 | 17.5 | ||||||||
Weighted average common and common equivalent shares outstanding (for diluted calculation) | 1,461.5 | 1,486.7 | 1,513.4 | ||||||||
EPS — basic | $ | 1.99 | $ | 1.91 | $ | 1.84 | |||||
EPS — diluted | $ | 1.97 | $ | 1.90 | $ | 1.82 |
Fair Value Measurements at Reporting Date Using | |||||||||||||||
Balance at Oct 1, 2017 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | |||||||||||||||
Cash and cash equivalents | $ | 2,462.3 | $ | 2,462.3 | $ | — | $ | — | |||||||
Short-term investments: | |||||||||||||||
Available-for-sale securities | |||||||||||||||
Agency obligations | 7.5 | — | 7.5 | — | |||||||||||
Commercial paper | 2.0 | — | 2.0 | — | |||||||||||
Corporate debt securities | 49.4 | — | 49.4 | — | |||||||||||
Foreign government obligations | 7.1 | — | 7.1 | — | |||||||||||
U.S. government treasury securities | 81.4 | 81.4 | — | — | |||||||||||
Mortgage and other asset-backed securities | 2.0 | — | 2.0 | — | |||||||||||
Certificates of deposit | 2.3 | — | 2.3 | — | |||||||||||
Total available-for-sale securities | 151.7 | 81.4 | 70.3 | — | |||||||||||
Trading securities | 76.9 | 76.9 | — | — | |||||||||||
Total short-term investments | 228.6 | 158.3 | 70.3 | — | |||||||||||
Prepaid expenses and other current assets: | |||||||||||||||
Derivative assets | 13.4 | 0.1 | 13.3 | — | |||||||||||
Long-term investments: | |||||||||||||||
Available-for-sale securities | |||||||||||||||
Agency obligations | 21.8 | — | 21.8 | — | |||||||||||
Corporate debt securities | 207.4 | — | 207.4 | — | |||||||||||
Auction rate securities | 5.9 | — | — | 5.9 | |||||||||||
Foreign government obligations | 17.1 | — | 17.1 | — | |||||||||||
U.S. government treasury securities | 127.4 | 127.4 | — | — | |||||||||||
State and local government obligations | 7.0 | — | 7.0 | — | |||||||||||
Mortgage and other asset-backed securities | 155.7 | — | 155.7 | — | |||||||||||
Total long-term investments | 542.3 | 127.4 | 409.0 | 5.9 | |||||||||||
Other long-term assets: | |||||||||||||||
Derivative assets | 24.4 | — | 24.4 | — | |||||||||||
Total assets | $ | 3,271.0 | $ | 2,748.1 | $ | 517.0 | $ | 5.9 | |||||||
Liabilities: | |||||||||||||||
Accrued liabilities: | |||||||||||||||
Derivative liabilities | $ | 16.4 | $ | 2.5 | $ | 13.9 | $ | — | |||||||
Other long-term liabilities: | |||||||||||||||
Derivative liabilities | 22.1 | — | 22.1 | — | |||||||||||
Total liabilities | $ | 38.5 | $ | 2.5 | $ | 36.0 | $ | — |
Fair Value Measurements at Reporting Date Using | |||||||||||||||
Balance at Oct 2, 2016 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | |||||||||||||||
Cash and cash equivalents | $ | 2,128.8 | $ | 2,128.8 | $ | — | $ | — | |||||||
Short-term investments: | |||||||||||||||
Available-for-sale securities | |||||||||||||||
Agency obligations | 1.3 | — | 1.3 | — | |||||||||||
Commercial paper | 2.6 | — | 2.6 | — | |||||||||||
Corporate debt securities | 34.2 | — | 34.2 | — | |||||||||||
Foreign government obligations | 5.5 | — | 5.5 | — | |||||||||||
U.S. government treasury securities | 15.8 | 15.8 | — | — | |||||||||||
State and local government obligations | 0.5 | — | 0.5 | — | |||||||||||
Certificates of deposit | 5.8 | — | 5.8 | — | |||||||||||
Total available-for-sale securities | 65.7 | 15.8 | 49.9 | — | |||||||||||
Trading securities | 68.7 | 68.7 | — | — | |||||||||||
Total short-term investments | 134.4 | 84.5 | 49.9 | — | |||||||||||
Prepaid expenses and other current assets: | |||||||||||||||
Derivative assets | 27.7 | 3.1 | 24.6 | — | |||||||||||
Long-term investments: | |||||||||||||||
Available-for-sale securities | |||||||||||||||
Agency obligations | 44.4 | — | 44.4 | — | |||||||||||
Corporate debt securities | 459.3 | — | 459.3 | — | |||||||||||
Auction rate securities | 5.7 | — | — | 5.7 | |||||||||||
Foreign government obligations | 46.7 | — | 46.7 | — | |||||||||||
U.S. government treasury securities | 358.2 | 358.2 | — | — | |||||||||||
State and local government obligations | 57.5 | — | 57.5 | — | |||||||||||
Mortgage and other asset-backed securities | 169.9 | — | 169.9 | — | |||||||||||
Total long-term investments | 1,141.7 | 358.2 | 777.8 | 5.7 | |||||||||||
Other long-term assets: | |||||||||||||||
Derivative assets | 6.4 | — | 6.4 | — | |||||||||||
Total assets | $ | 3,439.0 | $ | 2,574.6 | $ | 858.7 | $ | 5.7 | |||||||
Liabilities: | |||||||||||||||
Accrued liabilities: | |||||||||||||||
Derivative liabilities | $ | 18.0 | $ | 1.7 | $ | 16.3 | $ | — | |||||||
Other long-term liabilities: | |||||||||||||||
Derivative liabilities | 71.6 | — | 71.6 | — | |||||||||||
Total | $ | 89.6 | $ | 1.7 | $ | 87.9 | $ | — |
(in millions) | Oct 1, 2017 | Oct 2, 2016 | |||||
Trade names, trademarks and patents | $ | 212.1 | $ | 207.8 | |||
Other indefinite-lived intangible assets | 15.1 | 15.1 | |||||
Total indefinite-lived intangible assets | $ | 227.2 | $ | 222.9 |
Americas | China/Asia Pacific | EMEA | Channel Development | All Other Segments | Total | ||||||||||||||||||
Goodwill balance at September 27, 2015 | $ | 211.2 | $ | 804.1 | $ | 57.4 | $ | 23.8 | $ | 478.9 | $ | 1,575.4 | |||||||||||
Acquisition/(divestiture) | — | — | (2.6 | ) | — | 5.3 | 2.7 | ||||||||||||||||
Other | 0.4 | 140.8 | 0.3 | — | — | 141.5 | |||||||||||||||||
Goodwill balance at October 2, 2016 | $ | 211.6 | $ | 944.9 | $ | 55.1 | $ | 23.8 | $ | 484.2 | $ | 1,719.6 | |||||||||||
Acquisition/(divestiture) | — | (7.6 | ) | — | — | — | (7.6 | ) | |||||||||||||||
Impairment | — | — | (17.9 | ) | — | (69.3 | ) | (87.2 | ) | ||||||||||||||
Other | 1.5 | (87.1 | ) | — | — | — | (85.6 | ) | |||||||||||||||
Goodwill balance at October 1, 2017 | $ | 213.1 | $ | 850.2 | $ | 37.2 | $ | 23.8 | $ | 414.9 | $ | 1,539.2 |
Oct 1, 2017 | Oct 2, 2016 | ||||||||||||||||||||||
(in millions) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||
Acquired and reacquired rights | $ | 328.8 | $ | (154.2 | ) | $ | 174.6 | $ | 361.3 | $ | (114.5 | ) | $ | 246.8 | |||||||||
Acquired trade secrets and processes | 27.6 | (13.7 | ) | 13.9 | 27.6 | (11.0 | ) | 16.6 | |||||||||||||||
Trade names, trademarks and patents | 31.5 | (17.6 | ) | 13.9 | 29.4 | (15.2 | ) | 14.2 | |||||||||||||||
Licensing agreements | 14.4 | (3.8 | ) | 10.6 | 16.0 | (2.8 | ) | 13.2 | |||||||||||||||
Other finite-lived intangible assets | 6.7 | (5.5 | ) | 1.2 | 7.2 | (4.6 | ) | 2.6 | |||||||||||||||
Total finite-lived intangible assets | $ | 409.0 | $ | (194.8 | ) | $ | 214.2 | $ | 441.5 | $ | (148.1 | ) | $ | 293.4 |
Fiscal Year Ending | |||
2018 | $ | 55.7 | |
2019 | 54.5 | ||
2020 | 54.3 | ||
2021 | 31.4 | ||
2022 | 8.0 | ||
Thereafter | 10.3 | ||
Total estimated future amortization expense | $ | 214.2 |
Fiscal Year Ended | Oct 1, 2017 | Oct 2, 2016 | Sep 27, 2015 | ||||||||
United States | $ | 3,393.0 | $ | 3,415.7 | $ | 2,837.2 | |||||
Foreign | 924.5 | 782.9 | 1,065.8 | ||||||||
Total earnings before income taxes | $ | 4,317.5 | $ | 4,198.6 | $ | 3,903.0 |
Fiscal Year Ended | Oct 1, 2017 | Oct 2, 2016 | Sep 27, 2015 | ||||||||
Current taxes: | |||||||||||
U.S. federal | $ | 931.0 | $ | 704.1 | $ | 801.0 | |||||
U.S. state and local | 170.8 | 166.5 | 150.1 | ||||||||
Foreign | 216.6 | 218.5 | 172.2 | ||||||||
Total current taxes | 1,318.4 | 1,089.1 | 1,123.3 | ||||||||
Deferred taxes: | |||||||||||
U.S. federal | 121.2 | 351.3 | 56.5 | ||||||||
U.S. state and local | 14.2 | 25.8 | 4.0 | ||||||||
Foreign | (21.2 | ) | (86.5 | ) | (40.1 | ) | |||||
Total deferred taxes | 114.2 | 290.6 | 20.4 | ||||||||
Total income tax expense | $ | 1,432.6 | $ | 1,379.7 | $ | 1,143.7 |
Fiscal Year Ended | Oct 1, 2017 | Oct 2, 2016 | Sep 27, 2015 | |||||
Statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
State income taxes, net of federal tax benefit | 2.8 | 3.0 | 2.8 | |||||
Benefits and taxes related to foreign operations | (2.8 | ) | (2.2 | ) | (2.1 | ) | ||
Domestic production activity deduction | (1.8 | ) | (1.9 | ) | (2.2 | ) | ||
Gain resulting from acquisition of joint venture | — | — | (3.7 | ) | ||||
Other, net | — | (1.0 | ) | (0.5 | ) | |||
Effective tax rate | 33.2 | % | 32.9 | % | 29.3 | % |
Oct 1, 2017 | Oct 2, 2016 | ||||||
Deferred tax assets: | |||||||
Property, plant and equipment | $ | 71.3 | $ | 56.8 | |||
Accrued occupancy costs | 118.0 | 104.5 | |||||
Accrued compensation and related costs | 95.0 | 88.6 | |||||
Stored value card liability | 130.7 | 124.2 | |||||
Stock-based compensation | 125.9 | 138.3 | |||||
Net operating losses | 80.8 | 79.0 | |||||
Litigation charge | 792.0 | 862.3 | |||||
Other | 180.8 | 197.4 | |||||
Total | $ | 1,594.5 | $ | 1,651.1 | |||
Valuation allowance | (80.1 | ) | (70.3 | ) | |||
Total deferred tax asset, net of valuation allowance | $ | 1,514.4 | $ | 1,580.8 | |||
Deferred tax liabilities: | |||||||
Property, plant and equipment | (477.2 | ) | (445.7 | ) | |||
Intangible assets and goodwill | (159.0 | ) | (175.9 | ) | |||
Other | (89.1 | ) | (88.5 | ) | |||
Total | (725.3 | ) | (710.1 | ) | |||
Net deferred tax asset | $ | 789.1 | $ | 870.7 | |||
Reported as: | |||||||
Deferred income tax assets | 795.4 | 885.4 | |||||
Deferred income tax liabilities (included in Other long-term liabilities) | (6.3 | ) | (14.7 | ) | |||
Net deferred tax asset | $ | 789.1 | $ | 870.7 |
Oct 1, 2017 | Oct 2, 2016 | Sep 27, 2015 | |||||||||
Beginning balance | $ | 146.5 | $ | 150.4 | $ | 112.7 | |||||
Increase related to prior year tax positions | 10.4 | — | 7.9 | ||||||||
Decrease related to prior year tax positions | — | (23.6 | ) | (0.9 | ) | ||||||
Increase related to current year tax positions | 41.3 | 33.7 | 32.0 | ||||||||
Decrease related to current year tax positions | — | — | (0.6 | ) | |||||||
Decreases related to settlements with taxing authorities | — | (3.1 | ) | (0.7 | ) | ||||||
Decrease related to lapsing of statute of limitations | (1.3 | ) | (10.9 | ) | — | ||||||
Ending balance | $ | 196.9 | $ | 146.5 | $ | 150.4 |
Oct 1, 2017 | Oct 2, 2016 | ||||||
Coffee: | |||||||
Unroasted | $ | 541.0 | $ | 561.6 | |||
Roasted | 301.1 | 300.4 | |||||
Other merchandise held for sale | 301.1 | 308.6 | |||||
Packaging and other supplies | 220.8 | 207.9 | |||||
Total | $ | 1,364.0 | $ | 1,378.5 |
Fiscal Year Ended | Oct 1, 2017 | Oct 2, 2016 | Sep 27, 2015 | ||||||||
Minimum rent | $ | 1,185.7 | $ | 1,092.5 | $ | 1,026.3 | |||||
Contingent rent | 143.5 | 130.7 | 111.5 | ||||||||
Total | $ | 1,329.2 | $ | 1,223.2 | $ | 1,137.8 |
Fiscal Year Ending | Operating Leases | Lease Financing Arrangements | |||||
2018 | $ | 1,213.1 | $ | 4.1 | |||
2019 | 1,141.6 | 4.1 | |||||
2020 | 1,068.6 | 4.1 | |||||
2021 | 986.9 | 4.0 | |||||
2022 | 888.1 | 3.9 | |||||
Thereafter | 3,315.2 | 38.9 | |||||
Total minimum lease payments | $ | 8,613.5 | $ | 59.1 |
Consideration: | ||||
Cash paid for Sazaby's 39.5% equity interest | $ | 508.7 | ||
Fair value of our preexisting 39.5% equity interest | 577.0 | |||
Total consideration | $ | 1,085.7 | ||
Fair value of assets acquired and liabilities assumed: | ||||
Cash and cash equivalents | $ | 224.4 | ||
Accounts receivable, net | 37.4 | |||
Inventories | 26.4 | |||
Prepaid expenses and other current assets | 35.7 | |||
Property, plant and equipment | 282.9 | |||
Other long-term assets | 141.4 | |||
Other intangible assets | 323.0 | |||
Goodwill | 815.6 | |||
Total assets acquired | 1,886.8 | |||
Accounts payable | (54.5 | ) | ||
Accrued liabilities | (115.9 | ) | ||
Stored value card liability | (36.5 | ) | ||
Deferred income taxes | (67.3 | ) | ||
Other long-term liabilities | (115.8 | ) | ||
Total liabilities assumed | (390.0 | ) | ||
Noncontrolling interest | (411.1 | ) | ||
Total consideration | $ | 1,085.7 |
Pro Forma (unaudited) | ||||
Year Ended | ||||
Sep 27, 2015 | ||||
Revenue | $ | 19,254.5 | ||
Net earnings attributable to Starbucks | 2,380.9 |
Fiscal Year Ending | Operating Leases | Lease Financing Arrangements | |||||
2018 | $ | 1,213.1 | $ | 4.1 | |||
2019 | 1,141.6 | 4.1 | |||||
2020 | 1,068.6 | 4.1 | |||||
2021 | 986.9 | 4.0 | |||||
2022 | 888.1 | 3.9 | |||||
Thereafter | 3,315.2 | 38.9 | |||||
Total minimum lease payments | $ | 8,613.5 | $ | 59.1 |
Oct 1, 2017 | Oct 2, 2016 | ||||||
Land | $ | 46.9 | $ | 46.6 | |||
Buildings | 481.7 | 458.4 | |||||
Leasehold improvements | 6,401.0 | 5,892.9 | |||||
Store equipment | 2,110.7 | 1,931.7 | |||||
Roasting equipment | 619.8 | 605.4 | |||||
Furniture, fixtures and other | 1,514.1 | 1,366.9 | |||||
Work in progress | 409.8 | 271.4 | |||||
Property, plant and equipment, gross | 11,584.0 | 10,573.3 | |||||
Accumulated depreciation | (6,664.5 | ) | (6,039.5 | ) | |||
Property, plant and equipment, net | $ | 4,919.5 | $ | 4,533.8 |
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | |||||||||||||||
Fiscal 2017: | |||||||||||||||||||
Net revenues | $ | 5,732.9 | $ | 5,294.0 | $ | 5,661.5 | $ | 5,698.3 | $ | 22,386.8 | |||||||||
Operating income | 1,132.6 | 935.4 | 1,044.2 | 1,022.5 | 4,134.7 | ||||||||||||||
Net earnings attributable to Starbucks | 751.8 | 652.8 | 691.6 | 788.5 | 2,884.7 | ||||||||||||||
EPS — diluted | 0.51 | 0.45 | 0.47 | 0.54 | 1.97 | ||||||||||||||
Fiscal 2016(1): | |||||||||||||||||||
Net revenues | $ | 5,373.5 | $ | 4,993.2 | $ | 5,238.0 | $ | 5,711.2 | $ | 21,315.9 | |||||||||
Operating income | 1,058.0 | 864.2 | 1,022.3 | 1,227.5 | 4,171.9 | ||||||||||||||
Net earnings attributable to Starbucks | 687.6 | 575.1 | 754.1 | 801.0 | 2,817.7 | ||||||||||||||
EPS — diluted | 0.46 | 0.39 | 0.51 | 0.54 | 1.90 |
AOCI Components | Amounts Reclassified from AOCI | Affected Line Item in the Statements of Earnings | ||||||||||||
Fiscal Year Ended | ||||||||||||||
Oct 1, 2017 | Oct 2, 2016 | Sep 27, 2015 | ||||||||||||
Gains/(losses) on available-for-sale securities | $ | (4.1 | ) | $ | 1.6 | $ | 1.0 | Interest income and other, net | ||||||
Gains/(losses) on cash flow hedges | ||||||||||||||
Interest rate hedges | 4.8 | 5.0 | 3.2 | Interest expense | ||||||||||
Cross-currency swaps | 57.2 | (101.1 | ) | 46.2 | Interest income and other, net | |||||||||
Foreign currency hedges | 3.0 | 4.9 | 14.0 | Revenue | ||||||||||
Foreign currency/coffee hedges | 5.7 | 11.4 | 8.6 | Cost of sales including occupancy costs | ||||||||||
Gains/(losses) on net investment hedges(1) | — | — | 7.2 | Gain resulting from acquisition of joint venture | ||||||||||
Translation adjustment(2) | ||||||||||||||
Starbucks Japan | — | — | (7.2 | ) | Gain resulting from acquisition of joint venture | |||||||||
Other | 0.6 | — | (7.1 | ) | Interest income and other, net | |||||||||
67.2 | (78.2 | ) | 65.9 | Total before tax | ||||||||||
(14.0 | ) | 11.8 | (23.5 | ) | Tax (expense)/benefit | |||||||||
$ | 53.2 | $ | (66.4 | ) | $ | 42.4 | Net of tax |
Fiscal Year Ended | Oct 1, 2017 | Oct 2, 2016 | Sep 27, 2015 | ||||||||
Total segment operating income | $ | 5,263.4 | $ | 5,294.1 | $ | 4,521.1 | |||||
Unallocated corporate operating expenses | (1,128.7 | ) | (1,122.2 | ) | (920.1 | ) | |||||
Consolidated operating income | 4,134.7 | 4,171.9 | 3,601.0 | ||||||||
Gain resulting from acquisition of joint venture | — | — | 390.6 | ||||||||
Loss on extinguishment of debt | — | — | (61.1 | ) | |||||||
Interest income and other, net | 275.3 | 108.0 | 43.0 | ||||||||
Interest expense | (92.5 | ) | (81.3 | ) | (70.5 | ) | |||||
Earnings before income taxes | $ | 4,317.5 | $ | 4,198.6 | $ | 3,903.0 |
Oct 1, 2017 | Oct 2, 2016 | ||||||
Accrued compensation and related costs | $ | 524.5 | $ | 510.8 | |||
Accrued occupancy costs | 151.3 | 137.5 | |||||
Accrued taxes | 226.6 | 368.4 | |||||
Accrued dividends payable | 429.5 | 365.1 | |||||
Accrued capital and other operating expenditures | 602.6 | 617.3 | |||||
Total accrued liabilities | $ | 1,934.5 | $ | 1,999.1 |
(in millions) | Available-for-Sale Securities | Cash Flow Hedges | Net Investment Hedges | Translation Adjustment and Other | Total | ||||||||||||||
October 1, 2017 | |||||||||||||||||||
Net gains/(losses) in AOCI, beginning of period | $ | 1.1 | $ | 10.9 | $ | 1.3 | $ | (121.7 | ) | $ | (108.4 | ) | |||||||
Net gains/(losses) recognized in OCI before reclassifications | (6.6 | ) | 40.6 | 12.7 | (40.7 | ) | 6.0 | ||||||||||||
Net (gains)/losses reclassified from AOCI to earnings | 3.0 | (55.6 | ) | — | (0.6 | ) | (53.2 | ) | |||||||||||
Other comprehensive income/(loss) attributable to Starbucks | (3.6 | ) | (15.0 | ) | 12.7 | (41.3 | ) | (47.2 | ) | ||||||||||
Net gains/(losses) in AOCI, end of period | $ | (2.5 | ) | $ | (4.1 | ) | $ | 14.0 | $ | (163.0 | ) | $ | (155.6 | ) |
(in millions) | Available-for-Sale Securities | Cash Flow Hedges | Net Investment Hedges | Translation Adjustment and Other | Total | ||||||||||||||
October 2, 2016 | |||||||||||||||||||
Net gains/(losses) in AOCI, beginning of period | $ | (0.1 | ) | $ | 25.6 | $ | 1.3 | $ | (226.2 | ) | $ | (199.4 | ) | ||||||
Net gains/(losses) recognized in OCI before reclassifications | 2.2 | (82.1 | ) | — | 104.5 | 24.6 | |||||||||||||
Net (gains)/losses reclassified from AOCI to earnings | (1.0 | ) | 67.4 | — | — | 66.4 | |||||||||||||
Other comprehensive income/(loss) attributable to Starbucks | 1.2 | (14.7 | ) | — | 104.5 | 91.0 | |||||||||||||
Net gains/(losses) in AOCI, end of period | $ | 1.1 | $ | 10.9 | $ | 1.3 | $ | (121.7 | ) | $ | (108.4 | ) |
Net Gains/(Losses) Included in AOCI | Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | Contract Remaining Maturity (Months) | |||||||||||||||
Oct 1, 2017 | Oct 2, 2016 | Sep 27, 2015 | |||||||||||||||
Cash Flow Hedges: | |||||||||||||||||
Interest rates | $ | 17.6 | $ | 20.5 | $ | 30.1 | $ | 3.0 | 0 | ||||||||
Cross-currency swaps | (6.0 | ) | (7.7 | ) | (27.8 | ) | — | 86 | |||||||||
Foreign currency - other | (9.1 | ) | (0.4 | ) | 29.0 | (5.8 | ) | 36 | |||||||||
Coffee | (6.6 | ) | (1.6 | ) | (5.7 | ) | (6.6 | ) | 4 | ||||||||
Net Investment Hedges: | |||||||||||||||||
Foreign currency | 16.2 | 1.3 | 1.3 | 0.1 | 0 | ||||||||||||
Foreign currency debt | (2.2 | ) | — | — | — | 79 |
Fiscal Year Ended | Oct 1, 2017 | Oct 2, 2016 | Sep 27, 2015 | ||||||||
Current taxes: | |||||||||||
U.S. federal | $ | 931.0 | $ | 704.1 | $ | 801.0 | |||||
U.S. state and local | 170.8 | 166.5 | 150.1 | ||||||||
Foreign | 216.6 | 218.5 | 172.2 | ||||||||
Total current taxes | 1,318.4 | 1,089.1 | 1,123.3 | ||||||||
Deferred taxes: | |||||||||||
U.S. federal | 121.2 | 351.3 | 56.5 | ||||||||
U.S. state and local | 14.2 | 25.8 | 4.0 | ||||||||
Foreign | (21.2 | ) | (86.5 | ) | (40.1 | ) | |||||
Total deferred taxes | 114.2 | 290.6 | 20.4 | ||||||||
Total income tax expense | $ | 1,432.6 | $ | 1,379.7 | $ | 1,143.7 |
Oct 1, 2017 | Oct 2, 2016 | Stated Interest Rate | Effective Interest Rate (1) | |||||||||||||||
Issuance | Face Value | Estimated Fair Value | Face Value | Estimated Fair Value | ||||||||||||||
2016 notes | $ | — | $ | — | $ | 400.0 | $ | 400 | 0.875 | % | 0.941 | % | ||||||
2018 notes | 350.0 | 352 | 350.0 | 357 | 2.000 | % | 2.012 | % | ||||||||||
2021 notes | 500.0 | 501 | 500.0 | 511 | 2.100 | % | 2.293 | % | ||||||||||
2021 notes | 250.0 | 250 | 250.0 | 255 | 2.100 | % | 1.600 | % | ||||||||||
2022 notes | 500.0 | 508 | 500.0 | 526 | 2.700 | % | 2.819 | % | ||||||||||
2023 notes | 750.0 | 806 | 750.0 | 839 | 3.850 | % | 2.859 | % | ||||||||||
2024 notes(2) | 755.3 | 760 | — | — | 0.372 | % | 0.462 | % | ||||||||||
2026 notes | 500.0 | 481 | 500.0 | 509 | 2.450 | % | 2.511 | % | ||||||||||
2045 notes | 350.0 | 381 | 350.0 | 417 | 4.300 | % | 4.348 | % | ||||||||||
Total | 3,955.3 | 4,039 | 3,600.0 | 3,814 | ||||||||||||||
Aggregate debt issuance costs and unamortized premium/(discount), net | (17.5 | ) | (14.8 | ) | ||||||||||||||
Hedge accounting fair value adjustment(3) | (5.2 | ) | — | |||||||||||||||
Total | $ | 3,932.6 | $ | 3,585.2 |
(1) | Includes the effects of the amortization of any premium or discount and any gain or loss upon settlement of related treasury locks or forward-starting interest rate swaps utilized to hedge the interest rate risk prior to the debt issuance. |
Oct 1, 2017 | Oct 2, 2016 | ||||||
Deferred tax assets: | |||||||
Property, plant and equipment | $ | 71.3 | $ | 56.8 | |||
Accrued occupancy costs | 118.0 | 104.5 | |||||
Accrued compensation and related costs | 95.0 | 88.6 | |||||
Stored value card liability | 130.7 | 124.2 | |||||
Stock-based compensation | 125.9 | 138.3 | |||||
Net operating losses | 80.8 | 79.0 | |||||
Litigation charge | 792.0 | 862.3 | |||||
Other | 180.8 | 197.4 | |||||
Total | $ | 1,594.5 | $ | 1,651.1 | |||
Valuation allowance | (80.1 | ) | (70.3 | ) | |||
Total deferred tax asset, net of valuation allowance | $ | 1,514.4 | $ | 1,580.8 | |||
Deferred tax liabilities: | |||||||
Property, plant and equipment | (477.2 | ) | (445.7 | ) | |||
Intangible assets and goodwill | (159.0 | ) | (175.9 | ) | |||
Other | (89.1 | ) | (88.5 | ) | |||
Total | (725.3 | ) | (710.1 | ) | |||
Net deferred tax asset | $ | 789.1 | $ | 870.7 | |||
Reported as: | |||||||
Deferred income tax assets | 795.4 | 885.4 | |||||
Deferred income tax liabilities (included in Other long-term liabilities) | (6.3 | ) | (14.7 | ) | |||
Net deferred tax asset | $ | 789.1 | $ | 870.7 |
Year Ended | |||||||||||||||||||||||
Gains/(Losses) Recognized in OCI Before Reclassifications | Gains/(Losses) Reclassified from AOCI to Earnings | ||||||||||||||||||||||
Oct 1, 2017 | Oct 2, 2016 | Sep 27, 2015 | Oct 1, 2017 | Oct 2, 2016 | Sep 27, 2015 | ||||||||||||||||||
Cash Flow Hedges: | |||||||||||||||||||||||
Interest rates | $ | — | $ | (10.3 | ) | $ | (6.8 | ) | $ | 4.8 | $ | 5.0 | $ | 3.2 | |||||||||
Cross-currency swaps | 59.5 | (75.7 | ) | 11.4 | 57.2 | (101.1 | ) | 46.2 | |||||||||||||||
Foreign currency - other | 1.8 | (25.4 | ) | 52.0 | 11.4 | 19.1 | 26.1 | ||||||||||||||||
Coffee | (8.1 | ) | 1.7 | (9.0 | ) | (2.7 | ) | (2.8 | ) | (3.5 | ) | ||||||||||||
Net Investment Hedges: | |||||||||||||||||||||||
Foreign currency | 23.6 | — | 4.3 | — | — | 7.2 | |||||||||||||||||
Foreign currency debt | (3.5 | ) | — | — | — | — | — |
Derivative Assets | Derivative Liabilities | ||||||||||||||
Oct 1, 2017 | Oct 2, 2016 | Oct 1, 2017 | Oct 2, 2016 | ||||||||||||
Designated Derivative Instruments: | |||||||||||||||
Cross-currency swaps | $ | 12.4 | $ | — | $ | 9.8 | $ | 57.0 | |||||||
Foreign currency - other | 7.7 | 20.8 | 20.8 | 24.0 | |||||||||||
Coffee | — | 1.8 | — | — | |||||||||||
Net investment hedges | 0.3 | — | — | — | |||||||||||
Interest rate swap | — | — | 3.8 | — | |||||||||||
Non-designated Derivative Instruments: | |||||||||||||||
Foreign currency | 15.8 | 6.2 | 1.4 | 6.5 | |||||||||||
Dairy | — | 1.5 | 2.4 | 1.6 | |||||||||||
Diesel fuel and other commodities | 1.6 | 3.8 | 0.3 | 0.5 |
Fiscal Year Ended | Oct 1, 2017 | Oct 2, 2016 | Sep 27, 2015 | ||||||||
Net earnings attributable to Starbucks | $ | 2,884.7 | $ | 2,817.7 | $ | 2,757.4 | |||||
Weighted average common shares outstanding (for basic calculation) | 1,449.5 | 1,471.6 | 1,495.9 | ||||||||
Dilutive effect of outstanding common stock options and RSUs | 12.0 | 15.1 | 17.5 | ||||||||
Weighted average common and common equivalent shares outstanding (for diluted calculation) | 1,461.5 | 1,486.7 | 1,513.4 | ||||||||
EPS — basic | $ | 1.99 | $ | 1.91 | $ | 1.84 | |||||
EPS — diluted | $ | 1.97 | $ | 1.90 | $ | 1.82 |
Fiscal Year Ended | Oct 1, 2017 | Oct 2, 2016 | Sep 27, 2015 | |||||
Statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
State income taxes, net of federal tax benefit | 2.8 | 3.0 | 2.8 | |||||
Benefits and taxes related to foreign operations | (2.8 | ) | (2.2 | ) | (2.1 | ) | ||
Domestic production activity deduction | (1.8 | ) | (1.9 | ) | (2.2 | ) | ||
Gain resulting from acquisition of joint venture | — | — | (3.7 | ) | ||||
Other, net | — | (1.0 | ) | (0.5 | ) | |||
Effective tax rate | 33.2 | % | 32.9 | % | 29.3 | % |
Fiscal Year Ended | Oct 1, 2017 | Oct 2, 2016 | Sep 27, 2015 | ||||||||
Options | $ | 44.3 | $ | 42.7 | $ | 37.8 | |||||
RSUs | 131.7 | 175.4 | 172.0 | ||||||||
Total stock-based compensation expense recognized in the consolidated statements of earnings | $ | 176.0 | $ | 218.1 | $ | 209.8 | |||||
Total related tax benefit | $ | 57.6 | $ | 73.0 | $ | 72.3 | |||||
Total capitalized stock-based compensation included in net property, plant and equipment and inventories on the consolidated balance sheets | $ | 1.9 | $ | 1.5 | $ | 1.9 |
Fiscal Year Ended | Oct 1, 2017 | Oct 2, 2016 | Sep 27, 2015 | |||||||||||||||||
Beverage | $ | 12,915.0 | 58 | % | $ | 12,383.4 | 58 | % | $ | 11,115.4 | 58 | % | ||||||||
Food | 3,832.1 | 17 | % | 3,495.0 | 16 | % | 3,085.3 | 16 | % | |||||||||||
Packaged and single-serve coffees and teas | 2,883.6 | 13 | % | 2,866.0 | 14 | % | 2,619.9 | 14 | % | |||||||||||
Other(1) | 2,756.1 | 12 | % | 2,571.5 | 12 | % | 2,342.1 | 12 | % | |||||||||||
Total | $ | 22,386.8 | 100 | % | $ | 21,315.9 | 100 | % | $ | 19,162.7 | 100 | % |
Fair Value Measurements at Reporting Date Using | |||||||||||||||
Balance at Oct 1, 2017 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | |||||||||||||||
Cash and cash equivalents | $ | 2,462.3 | $ | 2,462.3 | $ | — | $ | — | |||||||
Short-term investments: | |||||||||||||||
Available-for-sale securities | |||||||||||||||
Agency obligations | 7.5 | — | 7.5 | — | |||||||||||
Commercial paper | 2.0 | — | 2.0 | — | |||||||||||
Corporate debt securities | 49.4 | — | 49.4 | — | |||||||||||
Foreign government obligations | 7.1 | — | 7.1 | — | |||||||||||
U.S. government treasury securities | 81.4 | 81.4 | — | — | |||||||||||
Mortgage and other asset-backed securities | 2.0 | — | 2.0 | — | |||||||||||
Certificates of deposit | 2.3 | — | 2.3 | — | |||||||||||
Total available-for-sale securities | 151.7 | 81.4 | 70.3 | — | |||||||||||
Trading securities | 76.9 | 76.9 | — | — | |||||||||||
Total short-term investments | 228.6 | 158.3 | 70.3 | — | |||||||||||
Prepaid expenses and other current assets: | |||||||||||||||
Derivative assets | 13.4 | 0.1 | 13.3 | — | |||||||||||
Long-term investments: | |||||||||||||||
Available-for-sale securities | |||||||||||||||
Agency obligations | 21.8 | — | 21.8 | — | |||||||||||
Corporate debt securities | 207.4 | — | 207.4 | — | |||||||||||
Auction rate securities | 5.9 | — | — | 5.9 | |||||||||||
Foreign government obligations | 17.1 | — | 17.1 | — | |||||||||||
U.S. government treasury securities | 127.4 | 127.4 | — | — | |||||||||||
State and local government obligations | 7.0 | — | 7.0 | — | |||||||||||
Mortgage and other asset-backed securities | 155.7 | — | 155.7 | — | |||||||||||
Total long-term investments | 542.3 | 127.4 | 409.0 | 5.9 | |||||||||||
Other long-term assets: | |||||||||||||||
Derivative assets | 24.4 | — | 24.4 | — | |||||||||||
Total assets | $ | 3,271.0 | $ | 2,748.1 | $ | 517.0 | $ | 5.9 | |||||||
Liabilities: | |||||||||||||||
Accrued liabilities: | |||||||||||||||
Derivative liabilities | $ | 16.4 | $ | 2.5 | $ | 13.9 | $ | — | |||||||
Other long-term liabilities: | |||||||||||||||
Derivative liabilities | 22.1 | — | 22.1 | — | |||||||||||
Total liabilities | $ | 38.5 | $ | 2.5 | $ | 36.0 | $ | — |
Fair Value Measurements at Reporting Date Using | |||||||||||||||
Balance at Oct 2, 2016 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | |||||||||||||||
Cash and cash equivalents | $ | 2,128.8 | $ | 2,128.8 | $ | — | $ | — | |||||||
Short-term investments: | |||||||||||||||
Available-for-sale securities | |||||||||||||||
Agency obligations | 1.3 | — | 1.3 | — | |||||||||||
Commercial paper | 2.6 | — | 2.6 | — | |||||||||||
Corporate debt securities | 34.2 | — | 34.2 | — | |||||||||||
Foreign government obligations | 5.5 | — | 5.5 | — | |||||||||||
U.S. government treasury securities | 15.8 | 15.8 | — | — | |||||||||||
State and local government obligations | 0.5 | — | 0.5 | — | |||||||||||
Certificates of deposit | 5.8 | — | 5.8 | — | |||||||||||
Total available-for-sale securities | 65.7 | 15.8 | 49.9 | — | |||||||||||
Trading securities | 68.7 | 68.7 | — | — | |||||||||||
Total short-term investments | 134.4 | 84.5 | 49.9 | — | |||||||||||
Prepaid expenses and other current assets: | |||||||||||||||
Derivative assets | 27.7 | 3.1 | 24.6 | — | |||||||||||
Long-term investments: | |||||||||||||||
Available-for-sale securities | |||||||||||||||
Agency obligations | 44.4 | — | 44.4 | — | |||||||||||
Corporate debt securities | 459.3 | — | 459.3 | — | |||||||||||
Auction rate securities | 5.7 | — | — | 5.7 | |||||||||||
Foreign government obligations | 46.7 | — | 46.7 | — | |||||||||||
U.S. government treasury securities | 358.2 | 358.2 | — | — | |||||||||||
State and local government obligations | 57.5 | — | 57.5 | — | |||||||||||
Mortgage and other asset-backed securities | 169.9 | — | 169.9 | — | |||||||||||
Total long-term investments | 1,141.7 | 358.2 | 777.8 | 5.7 | |||||||||||
Other long-term assets: | |||||||||||||||
Derivative assets | 6.4 | — | 6.4 | — | |||||||||||
Total assets | $ | 3,439.0 | $ | 2,574.6 | $ | 858.7 | $ | 5.7 | |||||||
Liabilities: | |||||||||||||||
Accrued liabilities: | |||||||||||||||
Derivative liabilities | $ | 18.0 | $ | 1.7 | $ | 16.3 | $ | — | |||||||
Other long-term liabilities: | |||||||||||||||
Derivative liabilities | 71.6 | — | 71.6 | — | |||||||||||
Total | $ | 89.6 | $ | 1.7 | $ | 87.9 | $ | — |
Oct 1, 2017 | Oct 2, 2016 | ||||||||||||||||||||||
(in millions) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||
Acquired and reacquired rights | $ | 328.8 | $ | (154.2 | ) | $ | 174.6 | $ | 361.3 | $ | (114.5 | ) | $ | 246.8 | |||||||||
Acquired trade secrets and processes | 27.6 | (13.7 | ) | 13.9 | 27.6 | (11.0 | ) | 16.6 | |||||||||||||||
Trade names, trademarks and patents | 31.5 | (17.6 | ) | 13.9 | 29.4 | (15.2 | ) | 14.2 | |||||||||||||||
Licensing agreements | 14.4 | (3.8 | ) | 10.6 | 16.0 | (2.8 | ) | 13.2 | |||||||||||||||
Other finite-lived intangible assets | 6.7 | (5.5 | ) | 1.2 | 7.2 | (4.6 | ) | 2.6 | |||||||||||||||
Total finite-lived intangible assets | $ | 409.0 | $ | (194.8 | ) | $ | 214.2 | $ | 441.5 | $ | (148.1 | ) | $ | 293.4 |
Americas | China/Asia Pacific | EMEA | Channel Development | All Other Segments | Total | ||||||||||||||||||
Goodwill balance at September 27, 2015 | $ | 211.2 | $ | 804.1 | $ | 57.4 | $ | 23.8 | $ | 478.9 | $ | 1,575.4 | |||||||||||
Acquisition/(divestiture) | — | — | (2.6 | ) | — | 5.3 | 2.7 | ||||||||||||||||
Other | 0.4 | 140.8 | 0.3 | — | — | 141.5 | |||||||||||||||||
Goodwill balance at October 2, 2016 | $ | 211.6 | $ | 944.9 | $ | 55.1 | $ | 23.8 | $ | 484.2 | $ | 1,719.6 | |||||||||||
Acquisition/(divestiture) | — | (7.6 | ) | — | — | — | (7.6 | ) | |||||||||||||||
Impairment | — | — | (17.9 | ) | — | (69.3 | ) | (87.2 | ) | ||||||||||||||
Other | 1.5 | (87.1 | ) | — | — | — | (85.6 | ) | |||||||||||||||
Goodwill balance at October 1, 2017 | $ | 213.1 | $ | 850.2 | $ | 37.2 | $ | 23.8 | $ | 414.9 | $ | 1,539.2 |
Fiscal Year Ended | Oct 1, 2017 | Oct 2, 2016 | Sep 27, 2015 | ||||||||
United States | $ | 3,393.0 | $ | 3,415.7 | $ | 2,837.2 | |||||
Foreign | 924.5 | 782.9 | 1,065.8 | ||||||||
Total earnings before income taxes | $ | 4,317.5 | $ | 4,198.6 | $ | 3,903.0 |
(in millions) | Oct 1, 2017 | Oct 2, 2016 | |||||
Trade names, trademarks and patents | $ | 212.1 | $ | 207.8 | |||
Other indefinite-lived intangible assets | 15.1 | 15.1 | |||||
Total indefinite-lived intangible assets | $ | 227.2 | $ | 222.9 |
Oct 1, 2017 | Oct 2, 2016 | ||||||
Coffee: | |||||||
Unroasted | $ | 541.0 | $ | 561.6 | |||
Roasted | 301.1 | 300.4 | |||||
Other merchandise held for sale | 301.1 | 308.6 | |||||
Packaging and other supplies | 220.8 | 207.9 | |||||
Total | $ | 1,364.0 | $ | 1,378.5 |
Fiscal Year | Total | ||
2018 | $ | — | |
2019 | 350.0 | ||
2020 | — | ||
2021 | 750.0 | ||
2022 | 500.0 | ||
Thereafter | 2,355.3 | ||
Total | $ | 3,955.3 |
Net Gains/(Losses) Included in AOCI | Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | Contract Remaining Maturity (Months) | |||||||||||||||
Oct 1, 2017 | Oct 2, 2016 | Sep 27, 2015 | |||||||||||||||
Cash Flow Hedges: | |||||||||||||||||
Interest rates | $ | 17.6 | $ | 20.5 | $ | 30.1 | $ | 3.0 | 0 | ||||||||
Cross-currency swaps | (6.0 | ) | (7.7 | ) | (27.8 | ) | — | 86 | |||||||||
Foreign currency - other | (9.1 | ) | (0.4 | ) | 29.0 | (5.8 | ) | 36 | |||||||||
Coffee | (6.6 | ) | (1.6 | ) | (5.7 | ) | (6.6 | ) | 4 | ||||||||
Net Investment Hedges: | |||||||||||||||||
Foreign currency | 16.2 | 1.3 | 1.3 | 0.1 | 0 | ||||||||||||
Foreign currency debt | (2.2 | ) | — | — | — | 79 |
Oct 1, 2017 | Oct 2, 2016 | ||||||
Interest rate swap | $ | 750 | $ | — | |||
Cross-currency swaps | 514 | 660 | |||||
Foreign currency - other | 901 | 688 | |||||
Coffee | — | 7 | |||||
Dairy | 14 | 76 | |||||
Diesel fuel and other commodities | 41 | 46 |
Gains/(Losses) Recognized in Earnings | |||||||||||
Oct 1, 2017 | Oct 2, 2016 | Sep 27, 2015 | |||||||||
Non-Designated Derivatives: | |||||||||||
Foreign currency - other | $ | 4.6 | $ | (5.7 | ) | $ | 27.1 | ||||
Dairy | — | (5.5 | ) | (3.8 | ) | ||||||
Diesel fuel and other commodities | 1.3 | (0.2 | ) | (9.0 | ) | ||||||
Designated Fair Value Hedging Instruments: | |||||||||||
Interest rate swap | (5.2 | ) | — | — |
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | |||||||||||||||
Fiscal 2017: | |||||||||||||||||||
Net revenues | $ | 5,732.9 | $ | 5,294.0 | $ | 5,661.5 | $ | 5,698.3 | $ | 22,386.8 | |||||||||
Operating income | 1,132.6 | 935.4 | 1,044.2 | 1,022.5 | 4,134.7 | ||||||||||||||
Net earnings attributable to Starbucks | 751.8 | 652.8 | 691.6 | 788.5 | 2,884.7 | ||||||||||||||
EPS — diluted | 0.51 | 0.45 | 0.47 | 0.54 | 1.97 | ||||||||||||||
Fiscal 2016(1): | |||||||||||||||||||
Net revenues | $ | 5,373.5 | $ | 4,993.2 | $ | 5,238.0 | $ | 5,711.2 | $ | 21,315.9 | |||||||||
Operating income | 1,058.0 | 864.2 | 1,022.3 | 1,227.5 | 4,171.9 | ||||||||||||||
Net earnings attributable to Starbucks | 687.6 | 575.1 | 754.1 | 801.0 | 2,817.7 | ||||||||||||||
EPS — diluted | 0.46 | 0.39 | 0.51 | 0.54 | 1.90 |
Fiscal Year Ended | Oct 1, 2017 | Oct 2, 2016 | Sep 27, 2015 | ||||||||
Minimum rent | $ | 1,185.7 | $ | 1,092.5 | $ | 1,026.3 | |||||
Contingent rent | 143.5 | 130.7 | 111.5 | ||||||||
Total | $ | 1,329.2 | $ | 1,223.2 | $ | 1,137.8 |
Fiscal Year Ended | Oct 1, 2017 | Oct 2, 2016 | Sep 27, 2015 | ||||||||
Net revenues: | |||||||||||
United States | $ | 16,527.1 | $ | 15,774.8 | $ | 14,123.7 | |||||
Other countries | 5,859.7 | 5,541.1 | 5,039.0 | ||||||||
Total | $ | 22,386.8 | $ | 21,315.9 | $ | 19,162.7 | |||||
Long-lived assets(1): | |||||||||||
United States | $ | 5,848.3 | $ | 6,012.8 | $ | 5,795.2 | |||||
Other countries | 3,234.0 | 3,541.8 | 2,639.9 | ||||||||
Total | $ | 9,082.3 | $ | 9,554.6 | $ | 8,435.1 |
(in millions) | Americas | China / Asia Pacific | EMEA | Channel Development | All Other Segments | Segment Total | |||||||||||||||||
Fiscal 2017 | |||||||||||||||||||||||
Total net revenues | $ | 15,652.7 | $ | 3,240.2 | $ | 1,013.7 | $ | 2,008.6 | $ | 471.6 | $ | 22,386.8 | |||||||||||
Depreciation and amortization expenses | 615.0 | 202.2 | 31.3 | 2.2 | 10.1 | 860.8 | |||||||||||||||||
Income from equity investees | — | 197.0 | — | 194.4 | — | 391.4 | |||||||||||||||||
Operating income/(loss) | 3,663.2 | 765.0 | 116.1 | 893.4 | (174.3 | ) | 5,263.4 | ||||||||||||||||
Total assets | 3,327.2 | 2,770.9 | 273.8 | 114.0 | 771.9 | 7,257.8 | |||||||||||||||||
Fiscal 2016 | |||||||||||||||||||||||
Total net revenues | $ | 14,795.4 | $ | 2,938.8 | $ | 1,124.9 | $ | 1,932.5 | $ | 524.3 | $ | 21,315.9 | |||||||||||
Depreciation and amortization expenses | 590.1 | 180.6 | 40.8 | 2.8 | 13.3 | 827.6 | |||||||||||||||||
Income from equity investees | — | 150.1 | 1.5 | 166.6 | — | 318.2 | |||||||||||||||||
Operating income/(loss) | 3,742.0 | 631.6 | 151.6 | 807.3 | (38.4 | ) | 5,294.1 | ||||||||||||||||
Total assets | 3,424.6 | 2,740.2 | 552.1 | 67.1 | 861.1 | 7,645.1 | |||||||||||||||||
Fiscal 2015 | |||||||||||||||||||||||
Total net revenues | $ | 13,293.4 | $ | 2,395.9 | $ | 1,216.7 | $ | 1,730.9 | $ | 525.8 | $ | 19,162.7 | |||||||||||
Depreciation and amortization expenses | 522.3 | 150.7 | 52.0 | 2.7 | 16.3 | 744.0 | |||||||||||||||||
Income from equity investees | — | 119.6 | 3.1 | 127.2 | — | 249.9 | |||||||||||||||||
Operating income/(loss) | 3,223.3 | 500.5 | 168.2 | 653.9 | (24.8 | ) | 4,521.1 | ||||||||||||||||
Total assets | 2,726.7 | 2,230.5 | 749.1 | 87.3 | 1,785.3 | 7,578.9 |
Number of Shares | Weighted Average Grant Date Fair Value per Share | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||
Nonvested, October 2, 2016 | 8.3 | $ | 46.15 | 0.9 | $ | 448 | ||||||
Granted | 5.1 | 54.30 | ||||||||||
Vested | (4.3 | ) | 42.09 | |||||||||
Forfeited/canceled | (1.5 | ) | 51.05 | |||||||||
Nonvested, October 1, 2017 | 7.6 | 52.06 | 0.9 | 410 |
Shares Subject to Options | Weighted Average Exercise Price per Share | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||
Outstanding, October 2, 2016 | 31.3 | $ | 30.59 | 5.8 | $ | 771 | ||||||
Granted | 7.1 | 56.12 | ||||||||||
Exercised | (5.3 | ) | 23.16 | |||||||||
Expired/forfeited | (1.7 | ) | 51.13 | |||||||||
Outstanding, October 1, 2017 | 31.4 | 36.51 | 5.8 | 589 | ||||||||
Exercisable, October 1, 2017 | 19.7 | 26.42 | 4.2 | 552 | ||||||||
Vested and expected to vest, October 1, 2017 | 30.0 | 35.60 | 5.6 | 587 |
Employee Stock Options Granted During the Period | |||||||||||
Fiscal Year Ended | 2017 | 2016 | 2015 | ||||||||
Expected term (in years) | 3.9 | 3.9 | 4.2 | ||||||||
Expected stock price volatility | 21.6 | % | 23.9 | % | 22.3 | % | |||||
Risk-free interest rate | 1.5 | % | 1.2 | % | 1.1 | % | |||||
Expected dividend yield | 1.8 | % | 1.3 | % | 1.6 | % | |||||
Weighted average grant price | $ | 56.12 | $ | 60.20 | $ | 39.89 | |||||
Estimated fair value per option granted | $ | 8.56 | $ | 10.54 | $ | 6.58 |
Fiscal Year Ending | |||
2018 | $ | 55.7 | |
2019 | 54.5 | ||
2020 | 54.3 | ||
2021 | 31.4 | ||
2022 | 8.0 | ||
Thereafter | 10.3 | ||
Total estimated future amortization expense | $ | 214.2 |
Fiscal Year Ended | Oct 1, 2017 | Oct 2, 2016 | Sep 27, 2015 | |||||||||||||||||
Beverage | $ | 12,915.0 | 58 | % | $ | 12,383.4 | 58 | % | $ | 11,115.4 | 58 | % | ||||||||
Food | 3,832.1 | 17 | % | 3,495.0 | 16 | % | 3,085.3 | 16 | % | |||||||||||
Packaged and single-serve coffees and teas | 2,883.6 | 13 | % | 2,866.0 | 14 | % | 2,619.9 | 14 | % | |||||||||||
Other(1) | 2,756.1 | 12 | % | 2,571.5 | 12 | % | 2,342.1 | 12 | % | |||||||||||
Total | $ | 22,386.8 | 100 | % | $ | 21,315.9 | 100 | % | $ | 19,162.7 | 100 | % |
Fiscal Year Ended | Oct 1, 2017 | Oct 2, 2016 | Sep 27, 2015 | ||||||||
Net revenues: | |||||||||||
United States | $ | 16,527.1 | $ | 15,774.8 | $ | 14,123.7 | |||||
Other countries | 5,859.7 | 5,541.1 | 5,039.0 | ||||||||
Total | $ | 22,386.8 | $ | 21,315.9 | $ | 19,162.7 | |||||
Long-lived assets(1): | |||||||||||
United States | $ | 5,848.3 | $ | 6,012.8 | $ | 5,795.2 | |||||
Other countries | 3,234.0 | 3,541.8 | 2,639.9 | ||||||||
Total | $ | 9,082.3 | $ | 9,554.6 | $ | 8,435.1 |
(in millions) | Americas | China / Asia Pacific | EMEA | Channel Development | All Other Segments | Segment Total | |||||||||||||||||
Fiscal 2017 | |||||||||||||||||||||||
Total net revenues | $ | 15,652.7 | $ | 3,240.2 | $ | 1,013.7 | $ | 2,008.6 | $ | 471.6 | $ | 22,386.8 | |||||||||||
Depreciation and amortization expenses | 615.0 | 202.2 | 31.3 | 2.2 | 10.1 | 860.8 | |||||||||||||||||
Income from equity investees | — | 197.0 | — | 194.4 | — | 391.4 | |||||||||||||||||
Operating income/(loss) | 3,663.2 | 765.0 | 116.1 | 893.4 | (174.3 | ) | 5,263.4 | ||||||||||||||||
Total assets | 3,327.2 | 2,770.9 | 273.8 | 114.0 | 771.9 | 7,257.8 | |||||||||||||||||
Fiscal 2016 | |||||||||||||||||||||||
Total net revenues | $ | 14,795.4 | $ | 2,938.8 | $ | 1,124.9 | $ | 1,932.5 | $ | 524.3 | $ | 21,315.9 | |||||||||||
Depreciation and amortization expenses | 590.1 | 180.6 | 40.8 | 2.8 | 13.3 | 827.6 | |||||||||||||||||
Income from equity investees | — | 150.1 | 1.5 | 166.6 | — | 318.2 | |||||||||||||||||
Operating income/(loss) | 3,742.0 | 631.6 | 151.6 | 807.3 | (38.4 | ) | 5,294.1 | ||||||||||||||||
Total assets | 3,424.6 | 2,740.2 | 552.1 | 67.1 | 861.1 | 7,645.1 | |||||||||||||||||
Fiscal 2015 | |||||||||||||||||||||||
Total net revenues | $ | 13,293.4 | $ | 2,395.9 | $ | 1,216.7 | $ | 1,730.9 | $ | 525.8 | $ | 19,162.7 | |||||||||||
Depreciation and amortization expenses | 522.3 | 150.7 | 52.0 | 2.7 | 16.3 | 744.0 | |||||||||||||||||
Income from equity investees | — | 119.6 | 3.1 | 127.2 | — | 249.9 | |||||||||||||||||
Operating income/(loss) | 3,223.3 | 500.5 | 168.2 | 653.9 | (24.8 | ) | 4,521.1 | ||||||||||||||||
Total assets | 2,726.7 | 2,230.5 | 749.1 | 87.3 | 1,785.3 | 7,578.9 |
Fiscal Year Ended | Oct 1, 2017 | Oct 2, 2016 | Sep 27, 2015 | ||||||||
Total segment operating income | $ | 5,263.4 | $ | 5,294.1 | $ | 4,521.1 | |||||
Unallocated corporate operating expenses | (1,128.7 | ) | (1,122.2 | ) | (920.1 | ) | |||||
Consolidated operating income | 4,134.7 | 4,171.9 | 3,601.0 | ||||||||
Gain resulting from acquisition of joint venture | — | — | 390.6 | ||||||||
Loss on extinguishment of debt | — | — | (61.1 | ) | |||||||
Interest income and other, net | 275.3 | 108.0 | 43.0 | ||||||||
Interest expense | (92.5 | ) | (81.3 | ) | (70.5 | ) | |||||
Earnings before income taxes | $ | 4,317.5 | $ | 4,198.6 | $ | 3,903.0 |
(in millions) | Available-for-Sale Securities | Cash Flow Hedges | Net Investment Hedges | Translation Adjustment and Other | Total | ||||||||||||||
October 1, 2017 | |||||||||||||||||||
Net gains/(losses) in AOCI, beginning of period | $ | 1.1 | $ | 10.9 | $ | 1.3 | $ | (121.7 | ) | $ | (108.4 | ) | |||||||
Net gains/(losses) recognized in OCI before reclassifications | (6.6 | ) | 40.6 | 12.7 | (40.7 | ) | 6.0 | ||||||||||||
Net (gains)/losses reclassified from AOCI to earnings | 3.0 | (55.6 | ) | — | (0.6 | ) | (53.2 | ) | |||||||||||
Other comprehensive income/(loss) attributable to Starbucks | (3.6 | ) | (15.0 | ) | 12.7 | (41.3 | ) | (47.2 | ) | ||||||||||
Net gains/(losses) in AOCI, end of period | $ | (2.5 | ) | $ | (4.1 | ) | $ | 14.0 | $ | (163.0 | ) | $ | (155.6 | ) |
(in millions) | Available-for-Sale Securities | Cash Flow Hedges | Net Investment Hedges | Translation Adjustment and Other | Total | ||||||||||||||
October 2, 2016 | |||||||||||||||||||
Net gains/(losses) in AOCI, beginning of period | $ | (0.1 | ) | $ | 25.6 | $ | 1.3 | $ | (226.2 | ) | $ | (199.4 | ) | ||||||
Net gains/(losses) recognized in OCI before reclassifications | 2.2 | (82.1 | ) | — | 104.5 | 24.6 | |||||||||||||
Net (gains)/losses reclassified from AOCI to earnings | (1.0 | ) | 67.4 | — | — | 66.4 | |||||||||||||
Other comprehensive income/(loss) attributable to Starbucks | 1.2 | (14.7 | ) | — | 104.5 | 91.0 | |||||||||||||
Net gains/(losses) in AOCI, end of period | $ | 1.1 | $ | 10.9 | $ | 1.3 | $ | (121.7 | ) | $ | (108.4 | ) |
(in millions) | Available-for-Sale Securities | Cash Flow Hedges | Net Investment Hedges | Translation Adjustment and Other | Total | ||||||||||||||
September 27, 2015 | |||||||||||||||||||
Net gains/(losses) in AOCI, beginning of period | $ | (0.4 | ) | $ | 46.3 | $ | 3.2 | $ | (23.8 | ) | $ | 25.3 | |||||||
Net gains/(losses) recognized in OCI before reclassifications | 0.9 | 30.8 | 2.7 | (185.6 | ) | (151.2 | ) | ||||||||||||
Net (gains)/losses reclassified from AOCI to earnings | (0.6 | ) | (51.5 | ) | (4.6 | ) | 14.3 | (42.4 | ) | ||||||||||
Other comprehensive income/(loss) attributable to Starbucks | 0.3 | (20.7 | ) | (1.9 | ) | (171.3 | ) | (193.6 | ) | ||||||||||
Purchase of noncontrolling interest | — | — | — | (31.1 | ) | (31.1 | ) | ||||||||||||
Net gains/(losses) in AOCI, end of period | $ | (0.1 | ) | $ | 25.6 | $ | 1.3 | $ | (226.2 | ) | $ | (199.4 | ) |
AOCI Components | Amounts Reclassified from AOCI | Affected Line Item in the Statements of Earnings | ||||||||||||
Fiscal Year Ended | ||||||||||||||
Oct 1, 2017 | Oct 2, 2016 | Sep 27, 2015 | ||||||||||||
Gains/(losses) on available-for-sale securities | $ | (4.1 | ) | $ | 1.6 | $ | 1.0 | Interest income and other, net | ||||||
Gains/(losses) on cash flow hedges | ||||||||||||||
Interest rate hedges | 4.8 | 5.0 | 3.2 | Interest expense | ||||||||||
Cross-currency swaps | 57.2 | (101.1 | ) | 46.2 | Interest income and other, net | |||||||||
Foreign currency hedges | 3.0 | 4.9 | 14.0 | Revenue | ||||||||||
Foreign currency/coffee hedges | 5.7 | 11.4 | 8.6 | Cost of sales including occupancy costs | ||||||||||
Gains/(losses) on net investment hedges(1) | — | — | 7.2 | Gain resulting from acquisition of joint venture | ||||||||||
Translation adjustment(2) | ||||||||||||||
Starbucks Japan | — | — | (7.2 | ) | Gain resulting from acquisition of joint venture | |||||||||
Other | 0.6 | — | (7.1 | ) | Interest income and other, net | |||||||||
67.2 | (78.2 | ) | 65.9 | Total before tax | ||||||||||
(14.0 | ) | 11.8 | (23.5 | ) | Tax (expense)/benefit | |||||||||
$ | 53.2 | $ | (66.4 | ) | $ | 42.4 | Net of tax |
(1) | Release of pretax cumulative net gains in AOCI related to our net investment derivative instruments used to hedge our preexisting 39.5% equity method investment in Starbucks Japan. |
(2) | Release of cumulative translation adjustments to earnings upon sale or liquidation of foreign business. |
Oct 1, 2017 | Oct 2, 2016 | Sep 27, 2015 | |||||||||
Beginning balance | $ | 146.5 | $ | 150.4 | $ | 112.7 | |||||
Increase related to prior year tax positions | 10.4 | — | 7.9 | ||||||||
Decrease related to prior year tax positions | — | (23.6 | ) | (0.9 | ) | ||||||
Increase related to current year tax positions | 41.3 | 33.7 | 32.0 | ||||||||
Decrease related to current year tax positions | — | — | (0.6 | ) | |||||||
Decreases related to settlements with taxing authorities | — | (3.1 | ) | (0.7 | ) | ||||||
Decrease related to lapsing of statute of limitations | (1.3 | ) | (10.9 | ) | — | ||||||
Ending balance | $ | 196.9 | $ | 146.5 | $ | 150.4 |
Oct 1, 2017 | Oct 2, 2016 | ||||||
Land | $ | 46.9 | $ | 46.6 | |||
Buildings | 481.7 | 458.4 | |||||
Leasehold improvements | 6,401.0 | 5,892.9 | |||||
Store equipment | 2,110.7 | 1,931.7 | |||||
Roasting equipment | 619.8 | 605.4 | |||||
Furniture, fixtures and other | 1,514.1 | 1,366.9 | |||||
Work in progress | 409.8 | 271.4 | |||||
Property, plant and equipment, gross | 11,584.0 | 10,573.3 | |||||
Accumulated depreciation | (6,664.5 | ) | (6,039.5 | ) | |||
Property, plant and equipment, net | $ | 4,919.5 | $ | 4,533.8 |
Oct 1, 2017 | Oct 2, 2016 | ||||||
Accrued compensation and related costs | $ | 524.5 | $ | 510.8 | |||
Accrued occupancy costs | 151.3 | 137.5 | |||||
Accrued taxes | 226.6 | 368.4 | |||||
Accrued dividends payable | 429.5 | 365.1 | |||||
Accrued capital and other operating expenditures | 602.6 | 617.3 | |||||
Total accrued liabilities | $ | 1,934.5 | $ | 1,999.1 |