Total | |||
Stored value cards and loyalty program at September 30, 2018 | $ | 1,328.6 | |
Revenue recognition adoption impact | (358.0 | ) | |
Stored value cards and loyalty program at October 1, 2018 | 970.6 | ||
Revenue deferred - card activations, card reloads and Stars earned | 10,983.6 | ||
Revenue recognized - card and Stars redemptions and breakage | (10,819.7 | ) | |
Other (1) | (20.8 | ) | |
Stored value cards and loyalty program at September 29, 2019 (2) | $ | 1,113.7 |
(1) | \u201cOther\u201d primarily consists of changes in the stored value cards and loyalty program balance resulting from the sale of certain retail businesses and foreign currency translation. |
(2)\u00a0 | Approximately $1.0 billion of this amount is current. |
(in millions) | As reported Sep 30, 2018 | Revenue Recognition Adoption Impact | Adjusted Oct 1, 2018 | ||||||||
Deferred income taxes, net | $ | 134.7 | $ | (11.0 | ) | $ | 123.7 | ||||
Current liabilities: | |||||||||||
Stored value card liability and current portion of deferred revenue | 1,642.9 | (422.0 | ) | 1,220.9 | |||||||
Deferred revenue | 6,775.7 | 64.0 | 6,839.7 | ||||||||
Other long-term liabilities | 1,430.5 | 79.0 | 1,509.5 | ||||||||
Shareholders' equity: | |||||||||||
Retained earnings | 1,457.4 | 268.0 | 1,725.4 |
Consideration: | ||||
Cash paid for UPG 50% equity interest | $ | 1,440.8 | ||
Fair value of our pre-existing 50% equity interest | 1,440.8 | |||
Settlement of pre-existing liabilities | 90.5 | |||
Total consideration | $ | 2,972.1 | ||
Fair value of assets acquired and liabilities assumed: | ||||
Cash and cash equivalents | $ | 129.5 | ||
Accounts receivable | 14.3 | |||
Inventories | 16.1 | |||
Prepaid expenses and other current assets | 20.6 | |||
Property, plant and equipment | 254.1 | |||
Other long-term assets | 44.6 | |||
Other intangible assets | 818.0 | |||
Goodwill | 2,164.1 | |||
Total assets acquired | $ | 3,461.3 | ||
Accounts payable | 34.7 | |||
Accrued liabilities | 187.7 | |||
Stored value card liability | 21.7 | |||
Other long-term liabilities | 245.1 | |||
Total liabilities assumed | 489.2 | |||
Total consideration | $ | 2,972.1 |
Year Ended | |||||||
Sep 30, 2018 | Oct 1, 2017 (1) | ||||||
Revenue | $ | 24,990.4 | $ | 23,315.0 | |||
Net earnings attributable to Starbucks | 3,196.8 | 4,209.0 |
(1)\u00a0 | The pro forma net earnings attributable to Starbucks for fiscal 2017 includes acquisition-related gain of $1.4 billion and transaction and integration costs of $39.3 million for the year ended October 1, 2017. |
Consideration: | ||||
Cash paid for UPG 50% equity interest | $ | 1,440.8 | ||
Fair value of our pre-existing 50% equity interest | 1,440.8 | |||
Settlement of pre-existing liabilities | 90.5 | |||
Total consideration | $ | 2,972.1 | ||
Fair value of assets acquired and liabilities assumed: | ||||
Cash and cash equivalents | $ | 129.5 | ||
Accounts receivable | 14.3 | |||
Inventories | 16.1 | |||
Prepaid expenses and other current assets | 20.6 | |||
Property, plant and equipment | 254.1 | |||
Other long-term assets | 44.6 | |||
Other intangible assets | 818.0 | |||
Goodwill | 2,164.1 | |||
Total assets acquired | $ | 3,461.3 | ||
Accounts payable | 34.7 | |||
Accrued liabilities | 187.7 | |||
Stored value card liability | 21.7 | |||
Other long-term liabilities | 245.1 | |||
Total liabilities assumed | 489.2 | |||
Total consideration | $ | 2,972.1 |
Year Ended | |||||||
Sep 30, 2018 | Oct 1, 2017 (1) | ||||||
Revenue | $ | 24,990.4 | $ | 23,315.0 | |||
Net earnings attributable to Starbucks | 3,196.8 | 4,209.0 |
Net Gains/(Losses) Included in AOCI | Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | Outstanding Contract/Debt Remaining Maturity (Months) | |||||||||||||||
Sep\u00a029, 2019 | Sep\u00a030, 2018 | Oct\u00a01, 2017 | |||||||||||||||
Cash Flow Hedges: | |||||||||||||||||
Interest rates | $ | 0.5 | $ | 24.7 | $ | 17.6 | $ | 2.4 | 157 | ||||||||
Cross-currency swaps | (1.4 | ) | (12.6 | ) | (6.0 | ) | \u2014 | 62 | |||||||||
Foreign currency - other | 12.9 | 5.8 | (9.1 | ) | 7.8 | 36 | |||||||||||
Coffee | (1.0 | ) | (0.2 | ) | (6.6 | ) | (0.2 | ) | 27 | ||||||||
Net Investment Hedges: | |||||||||||||||||
Foreign currency | 16.0 | 16.0 | 16.2 | \u2014 | 0 | ||||||||||||
Foreign currency debt | (26.1 | ) | 3.6 | (2.2 | ) | \u2014 | 54 |
Year Ended | |||||||||||||||||||||||||
Gains/(Losses) Recognized in OCI Before Reclassifications | Gains/(Losses) Reclassified from AOCI to Earnings | Location of gain/(loss) | |||||||||||||||||||||||
Sep\u00a029, 2019 | Sep\u00a030, 2018 | Oct\u00a01, 2017 | Sep\u00a029, 2019 | Sep\u00a030, 2018 | Oct\u00a01, 2017 | ||||||||||||||||||||
Cash Flow Hedges: | |||||||||||||||||||||||||
Interest rates | $ | (27.8 | ) | $ | 14.1 | $ | \u2014 | $ | 4.7 | $ | 4.9 | $ | 4.8 | Interest expense | |||||||||||
Cross-currency swaps | (5.9 | ) | (6.1 | ) | 59.5 | 0.1 | 0.3 | (0.9 | ) | Interest expense | |||||||||||||||
(19.8 | ) | 1.9 | 58.1 | Interest income and other, net | |||||||||||||||||||||
Foreign currency - other | 20.8 | 16.7 | 1.8 | 7.0 | (0.3 | ) | 3.0 | Licensed stores revenues | |||||||||||||||||
4.4 | (3.3 | ) | 8.4 | Cost of sales | |||||||||||||||||||||
Coffee | (1.2 | ) | (0.3 | ) | (8.1 | ) | (0.3 | ) | (7.4 | ) | (2.7 | ) | Cost of sales | ||||||||||||
Net Investment Hedges: | |||||||||||||||||||||||||
Foreign currency | \u2014 | (0.1 | ) | 23.6 | \u2014 | \u2014 | \u2014 | ||||||||||||||||||
Foreign currency debt | (39.8 | ) | 7.9 | (3.5 | ) | \u2014 | \u2014 | \u2014 |
Gains/(Losses) Recognized in Earnings | |||||||||||||
\u00a0 | Location of gain/(loss) recognized in earnings | Year Ended | |||||||||||
\u00a0 | Sep\u00a029, 2019 | Sep\u00a030, 2018 | Oct\u00a01, 2017 | ||||||||||
Non-Designated Derivatives: | |||||||||||||
Foreign currency - other | Interest income and other, net | $ | (8.1 | ) | $ | 4.6 | $ | 4.6 | |||||
Dairy | Interest income and other, net | (1.9 | ) | (2.4 | ) | \u2014 | |||||||
Diesel fuel and other commodities | Interest income and other, net | (5.9 | ) | 3.7 | 1.3 | ||||||||
Fair Value Hedges: | |||||||||||||
Interest rate swap | Interest expense | 54.7 | (33.7 | ) | (5.2 | ) | |||||||
Long-term debt (hedged item) | Interest expense | (50.7 | ) | 33.7 | 5.2 |
Sep\u00a029, 2019 | Sep\u00a030, 2018 | ||||||
Interest rate swaps | $ | 1,500 | $ | 750 | |||
Cross-currency swaps | 341 | 434 | |||||
Foreign currency - other | 1,125 | 914 | |||||
Coffee | 52 | \u2014 | |||||
Dairy | 1 | 16 | |||||
Diesel fuel and other commodities | 17 | 21 |
Derivative Assets | |||||||||
Balance Sheet Location | Sep\u00a029, 2019 | Sep\u00a030, 2018 | |||||||
Designated Derivative Instruments: | |||||||||
Interest rates | Other long-term assets | $ | 0.1 | $ | \u2014 | ||||
Cross-currency swaps | Other long-term assets | 0.2 | 5.8 | ||||||
Foreign currency - other | Prepaid expenses and other current assets | 11.4 | 9.0 | ||||||
Other long-term assets | 7.8 | 4.6 | |||||||
Interest rate swap | Other long-term assets | 18.2 | \u2014 | ||||||
Non-designated Derivative Instruments: | |||||||||
Foreign currency | Prepaid expenses and other current assets | 1.0 | 13.7 | ||||||
Dairy | Prepaid expenses and other current assets | \u2014 | 0.2 | ||||||
Diesel fuel and other commodities | Prepaid expenses and other current assets | 0.2 | 1.6 | ||||||
Derivative Liabilities | |||||||||
Balance Sheet Location | Sep\u00a029, 2019 | Sep\u00a030, 2018 | |||||||
Designated Derivative Instruments: | |||||||||
Interest rates | Other long-term liabilities | $ | 2.6 | $ | \u2014 | ||||
Cross-currency swaps | Other long-term liabilities | 9.7 | 9.3 | ||||||
Foreign currency - other | Accrued liabilities | 0.6 | 3.6 | ||||||
Other long-term liabilities | 0.1 | 1.7 | |||||||
Coffee | Accrued liabilities | 1.0 | \u2014 | ||||||
Other long-term liabilities | 0.1 | \u2014 | |||||||
Interest rate swap | Other long-term liabilities | \u2014 | 32.5 | ||||||
Non-designated Derivative Instruments: | |||||||||
Foreign currency | Accrued liabilities | 3.0 | 2.5 | ||||||
Dairy | Accrued liabilities | \u2014 | 0.1 | ||||||
Diesel fuel and other commodities | Accrued liabilities | 1.1 | 0.3 |
Carrying amount of hedged item | Cumulative amount of fair value hedging adjustment included in the carrying amount | ||||||||||||||
Sep\u00a029, 2019 | Sep\u00a030, 2018 | Sep\u00a029, 2019 | Sep\u00a030, 2018 | ||||||||||||
Location on the balance sheet | |||||||||||||||
Long-term debt | $ | 761.8 | $ | 711.0 | $ | 11.8 | $ | (39.0 | ) |
Net Gains/(Losses) Included in AOCI | Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months | Outstanding Contract/Debt Remaining Maturity (Months) | |||||||||||||||
Sep\u00a029, 2019 | Sep\u00a030, 2018 | Oct\u00a01, 2017 | |||||||||||||||
Cash Flow Hedges: | |||||||||||||||||
Interest rates | $ | 0.5 | $ | 24.7 | $ | 17.6 | $ | 2.4 | 157 | ||||||||
Cross-currency swaps | (1.4 | ) | (12.6 | ) | (6.0 | ) | \u2014 | 62 | |||||||||
Foreign currency - other | 12.9 | 5.8 | (9.1 | ) | 7.8 | 36 | |||||||||||
Coffee | (1.0 | ) | (0.2 | ) | (6.6 | ) | (0.2 | ) | 27 | ||||||||
Net Investment Hedges: | |||||||||||||||||
Foreign currency | 16.0 | 16.0 | 16.2 | \u2014 | 0 | ||||||||||||
Foreign currency debt | (26.1 | ) | 3.6 | (2.2 | ) | \u2014 | 54 |
Year Ended | |||||||||||||||||||||||||
Gains/(Losses) Recognized in OCI Before Reclassifications | Gains/(Losses) Reclassified from AOCI to Earnings | Location of gain/(loss) | |||||||||||||||||||||||
Sep\u00a029, 2019 | Sep\u00a030, 2018 | Oct\u00a01, 2017 | Sep\u00a029, 2019 | Sep\u00a030, 2018 | Oct\u00a01, 2017 | ||||||||||||||||||||
Cash Flow Hedges: | |||||||||||||||||||||||||
Interest rates | $ | (27.8 | ) | $ | 14.1 | $ | \u2014 | $ | 4.7 | $ | 4.9 | $ | 4.8 | Interest expense | |||||||||||
Cross-currency swaps | (5.9 | ) | (6.1 | ) | 59.5 | 0.1 | 0.3 | (0.9 | ) | Interest expense | |||||||||||||||
(19.8 | ) | 1.9 | 58.1 | Interest income and other, net | |||||||||||||||||||||
Foreign currency - other | 20.8 | 16.7 | 1.8 | 7.0 | (0.3 | ) | 3.0 | Licensed stores revenues | |||||||||||||||||
4.4 | (3.3 | ) | 8.4 | Cost of sales | |||||||||||||||||||||
Coffee | (1.2 | ) | (0.3 | ) | (8.1 | ) | (0.3 | ) | (7.4 | ) | (2.7 | ) | Cost of sales | ||||||||||||
Net Investment Hedges: | |||||||||||||||||||||||||
Foreign currency | \u2014 | (0.1 | ) | 23.6 | \u2014 | \u2014 | \u2014 | ||||||||||||||||||
Foreign currency debt | (39.8 | ) | 7.9 | (3.5 | ) | \u2014 | \u2014 | \u2014 |
Gains/(Losses) Recognized in Earnings | |||||||||||||
\u00a0 | Location of gain/(loss) recognized in earnings | Year Ended | |||||||||||
\u00a0 | Sep\u00a029, 2019 | Sep\u00a030, 2018 | Oct\u00a01, 2017 | ||||||||||
Non-Designated Derivatives: | |||||||||||||
Foreign currency - other | Interest income and other, net | $ | (8.1 | ) | $ | 4.6 | $ | 4.6 | |||||
Dairy | Interest income and other, net | (1.9 | ) | (2.4 | ) | \u2014 | |||||||
Diesel fuel and other commodities | Interest income and other, net | (5.9 | ) | 3.7 | 1.3 | ||||||||
Fair Value Hedges: | |||||||||||||
Interest rate swap | Interest expense | 54.7 | (33.7 | ) | (5.2 | ) | |||||||
Long-term debt (hedged item) | Interest expense | (50.7 | ) | 33.7 | 5.2 |
Sep\u00a029, 2019 | Sep\u00a030, 2018 | ||||||
Interest rate swaps | $ | 1,500 | $ | 750 | |||
Cross-currency swaps | 341 | 434 | |||||
Foreign currency - other | 1,125 | 914 | |||||
Coffee | 52 | \u2014 | |||||
Dairy | 1 | 16 | |||||
Diesel fuel and other commodities | 17 | 21 |
Derivative Assets | |||||||||
Balance Sheet Location | Sep\u00a029, 2019 | Sep\u00a030, 2018 | |||||||
Designated Derivative Instruments: | |||||||||
Interest rates | Other long-term assets | $ | 0.1 | $ | \u2014 | ||||
Cross-currency swaps | Other long-term assets | 0.2 | 5.8 | ||||||
Foreign currency - other | Prepaid expenses and other current assets | 11.4 | 9.0 | ||||||
Other long-term assets | 7.8 | 4.6 | |||||||
Interest rate swap | Other long-term assets | 18.2 | \u2014 | ||||||
Non-designated Derivative Instruments: | |||||||||
Foreign currency | Prepaid expenses and other current assets | 1.0 | 13.7 | ||||||
Dairy | Prepaid expenses and other current assets | \u2014 | 0.2 | ||||||
Diesel fuel and other commodities | Prepaid expenses and other current assets | 0.2 | 1.6 | ||||||
Derivative Liabilities | |||||||||
Balance Sheet Location | Sep\u00a029, 2019 | Sep\u00a030, 2018 | |||||||
Designated Derivative Instruments: | |||||||||
Interest rates | Other long-term liabilities | $ | 2.6 | $ | \u2014 | ||||
Cross-currency swaps | Other long-term liabilities | 9.7 | 9.3 | ||||||
Foreign currency - other | Accrued liabilities | 0.6 | 3.6 | ||||||
Other long-term liabilities | 0.1 | 1.7 | |||||||
Coffee | Accrued liabilities | 1.0 | \u2014 | ||||||
Other long-term liabilities | 0.1 | \u2014 | |||||||
Interest rate swap | Other long-term liabilities | \u2014 | 32.5 | ||||||
Non-designated Derivative Instruments: | |||||||||
Foreign currency | Accrued liabilities | 3.0 | 2.5 | ||||||
Dairy | Accrued liabilities | \u2014 | 0.1 | ||||||
Diesel fuel and other commodities | Accrued liabilities | 1.1 | 0.3 |
Carrying amount of hedged item | Cumulative amount of fair value hedging adjustment included in the carrying amount | ||||||||||||||
Sep\u00a029, 2019 | Sep\u00a030, 2018 | Sep\u00a029, 2019 | Sep\u00a030, 2018 | ||||||||||||
Location on the balance sheet | |||||||||||||||
Long-term debt | $ | 761.8 | $ | 711.0 | $ | 11.8 | $ | (39.0 | ) |
\u00a0 | \u00a0 | Fair\u00a0Value\u00a0Measurements\u00a0at\u00a0Reporting\u00a0Date\u00a0Using | |||||||||||||
\u00a0 | Balance at September 29, 2019 | Quoted\u00a0Prices in Active Markets\u00a0for\u00a0 Identical Assets (Level 1) | Significant\u00a0 Other Observable\u00a0 Inputs (Level 2) | Significant Unobservable\u00a0 Inputs (Level 3) | |||||||||||
Assets: | |||||||||||||||
Cash and cash equivalents | $ | 2,686.6 | $ | 2,686.6 | $ | \u2014 | $ | \u2014 | |||||||
Short-term investments: | |||||||||||||||
Available-for-sale debt securities | |||||||||||||||
Commercial paper | 0.5 | \u2014 | 0.5 | \u2014 | |||||||||||
Corporate debt securities | 3.5 | \u2014 | 3.5 | \u2014 | |||||||||||
Total available-for-sale debt securities | 4.0 | \u2014 | 4.0 | \u2014 | |||||||||||
Marketable equity securities | 66.5 | 66.5 | \u2014 | \u2014 | |||||||||||
Total short-term investments | 70.5 | 66.5 | 4.0 | \u2014 | |||||||||||
Prepaid expenses and other current assets: | |||||||||||||||
Derivative assets | 12.6 | \u2014 | 12.6 | \u2014 | |||||||||||
Long-term investments: | |||||||||||||||
Available-for-sale debt securities | |||||||||||||||
Corporate debt securities | 101.2 | \u2014 | 101.2 | \u2014 | |||||||||||
Auction rate securities | 5.8 | \u2014 | \u2014 | 5.8 | |||||||||||
U.S. government treasury securities | 106.5 | 106.5 | \u2014 | \u2014 | |||||||||||
State and local government obligations | 4.9 | \u2014 | 4.9 | \u2014 | |||||||||||
Mortgage and other asset-backed securities | 1.6 | \u2014 | 1.6 | \u2014 | |||||||||||
Total long-term investments | 220.0 | 106.5 | 107.7 | 5.8 | |||||||||||
Other long-term assets: | |||||||||||||||
Derivative assets | 26.3 | \u2014 | 26.3 | \u2014 | |||||||||||
Total assets | $ | 3,016.0 | $ | 2,859.6 | $ | 150.6 | $ | 5.8 | |||||||
Liabilities: | |||||||||||||||
Accrued liabilities: | |||||||||||||||
Derivative liabilities | $ | 5.7 | $ | 1.1 | $ | 4.6 | $ | \u2014 | |||||||
Other long-term liabilities: | |||||||||||||||
Derivative liabilities | 12.5 | \u2014 | 12.5 | \u2014 | |||||||||||
Total liabilities | $ | 18.2 | $ | 1.1 | $ | 17.1 | $ | \u2014 |
\u00a0 | \u00a0 | Fair\u00a0Value\u00a0Measurements\u00a0at\u00a0Reporting\u00a0Date\u00a0Using | |||||||||||||
\u00a0 | Balance at September 30, 2018 | Quoted\u00a0Prices in Active Markets\u00a0for\u00a0 Identical Assets (Level 1) | Significant\u00a0 Other Observable\u00a0 Inputs (Level 2) | Significant Unobservable\u00a0 Inputs (Level 3) | |||||||||||
Assets: | |||||||||||||||
Cash and cash equivalents | $ | 8,756.3 | $ | 8,756.3 | $ | \u2014 | $ | \u2014 | |||||||
Short-term investments: | |||||||||||||||
Available-for-sale debt securities | |||||||||||||||
Commercial paper | 8.4 | \u2014 | 8.4 | \u2014 | |||||||||||
Corporate debt securities | 91.8 | \u2014 | 91.8 | \u2014 | |||||||||||
Foreign government obligations | 6.0 | \u2014 | 6.0 | \u2014 | |||||||||||
Total available-for-sale debt securities | 106.2 | \u2014 | 106.2 | \u2014 | |||||||||||
Marketable equity securities | 75.3 | 75.3 | \u2014 | \u2014 | |||||||||||
Total short-term investments | 181.5 | 75.3 | 106.2 | \u2014 | |||||||||||
Prepaid expenses and other current assets: | |||||||||||||||
Derivative assets | 24.5 | 1.2 | 23.3 | \u2014 | |||||||||||
Long-term investments: | |||||||||||||||
Available-for-sale debt securities | |||||||||||||||
Agency obligations | 5.9 | \u2014 | 5.9 | \u2014 | |||||||||||
Corporate debt securities | 114.5 | \u2014 | 114.5 | \u2014 | |||||||||||
Auction rate securities | 5.9 | \u2014 | \u2014 | 5.9 | |||||||||||
Foreign government obligations | 3.6 | \u2014 | 3.6 | \u2014 | |||||||||||
U.S. government treasury securities | 108.1 | 108.1 | \u2014 | \u2014 | |||||||||||
State and local government obligations | 4.8 | \u2014 | 4.8 | \u2014 | |||||||||||
Mortgage and other asset-backed securities | 24.9 | \u2014 | 24.9 | \u2014 | |||||||||||
Total long-term investments | 267.7 | 108.1 | 153.7 | 5.9 | |||||||||||
Other long-term assets: | |||||||||||||||
Derivative assets | 10.4 | \u2014 | 10.4 | \u2014 | |||||||||||
Total assets | $ | 9,240.4 | $ | 8,940.9 | $ | 293.6 | $ | 5.9 | |||||||
Liabilities: | |||||||||||||||
Accrued liabilities: | |||||||||||||||
Derivative liabilities | $ | 6.5 | $ | 0.4 | $ | 6.1 | $ | \u2014 | |||||||
Other long-term liabilities: | |||||||||||||||
Derivative liabilities | 43.5 | \u2014 | 43.5 | \u2014 | |||||||||||
Total | $ | 50.0 | $ | 0.4 | $ | 49.6 | $ | \u2014 |
\u00a0 | \u00a0 | Fair\u00a0Value\u00a0Measurements\u00a0at\u00a0Reporting\u00a0Date\u00a0Using | |||||||||||||
\u00a0 | Balance at September 29, 2019 | Quoted\u00a0Prices in Active Markets\u00a0for\u00a0 Identical Assets (Level 1) | Significant\u00a0 Other Observable\u00a0 Inputs (Level 2) | Significant Unobservable\u00a0 Inputs (Level 3) | |||||||||||
Assets: | |||||||||||||||
Cash and cash equivalents | $ | 2,686.6 | $ | 2,686.6 | $ | \u2014 | $ | \u2014 | |||||||
Short-term investments: | |||||||||||||||
Available-for-sale debt securities | |||||||||||||||
Commercial paper | 0.5 | \u2014 | 0.5 | \u2014 | |||||||||||
Corporate debt securities | 3.5 | \u2014 | 3.5 | \u2014 | |||||||||||
Total available-for-sale debt securities | 4.0 | \u2014 | 4.0 | \u2014 | |||||||||||
Marketable equity securities | 66.5 | 66.5 | \u2014 | \u2014 | |||||||||||
Total short-term investments | 70.5 | 66.5 | 4.0 | \u2014 | |||||||||||
Prepaid expenses and other current assets: | |||||||||||||||
Derivative assets | 12.6 | \u2014 | 12.6 | \u2014 | |||||||||||
Long-term investments: | |||||||||||||||
Available-for-sale debt securities | |||||||||||||||
Corporate debt securities | 101.2 | \u2014 | 101.2 | \u2014 | |||||||||||
Auction rate securities | 5.8 | \u2014 | \u2014 | 5.8 | |||||||||||
U.S. government treasury securities | 106.5 | 106.5 | \u2014 | \u2014 | |||||||||||
State and local government obligations | 4.9 | \u2014 | 4.9 | \u2014 | |||||||||||
Mortgage and other asset-backed securities | 1.6 | \u2014 | 1.6 | \u2014 | |||||||||||
Total long-term investments | 220.0 | 106.5 | 107.7 | 5.8 | |||||||||||
Other long-term assets: | |||||||||||||||
Derivative assets | 26.3 | \u2014 | 26.3 | \u2014 | |||||||||||
Total assets | $ | 3,016.0 | $ | 2,859.6 | $ | 150.6 | $ | 5.8 | |||||||
Liabilities: | |||||||||||||||
Accrued liabilities: | |||||||||||||||
Derivative liabilities | $ | 5.7 | $ | 1.1 | $ | 4.6 | $ | \u2014 | |||||||
Other long-term liabilities: | |||||||||||||||
Derivative liabilities | 12.5 | \u2014 | 12.5 | \u2014 | |||||||||||
Total liabilities | $ | 18.2 | $ | 1.1 | $ | 17.1 | $ | \u2014 |
\u00a0 | \u00a0 | Fair\u00a0Value\u00a0Measurements\u00a0at\u00a0Reporting\u00a0Date\u00a0Using | |||||||||||||
\u00a0 | Balance at September 30, 2018 | Quoted\u00a0Prices in Active Markets\u00a0for\u00a0 Identical Assets (Level 1) | Significant\u00a0 Other Observable\u00a0 Inputs (Level 2) | Significant Unobservable\u00a0 Inputs (Level 3) | |||||||||||
Assets: | |||||||||||||||
Cash and cash equivalents | $ | 8,756.3 | $ | 8,756.3 | $ | \u2014 | $ | \u2014 | |||||||
Short-term investments: | |||||||||||||||
Available-for-sale debt securities | |||||||||||||||
Commercial paper | 8.4 | \u2014 | 8.4 | \u2014 | |||||||||||
Corporate debt securities | 91.8 | \u2014 | 91.8 | \u2014 | |||||||||||
Foreign government obligations | 6.0 | \u2014 | 6.0 | \u2014 | |||||||||||
Total available-for-sale debt securities | 106.2 | \u2014 | 106.2 | \u2014 | |||||||||||
Marketable equity securities | 75.3 | 75.3 | \u2014 | \u2014 | |||||||||||
Total short-term investments | 181.5 | 75.3 | 106.2 | \u2014 | |||||||||||
Prepaid expenses and other current assets: | |||||||||||||||
Derivative assets | 24.5 | 1.2 | 23.3 | \u2014 | |||||||||||
Long-term investments: | |||||||||||||||
Available-for-sale debt securities | |||||||||||||||
Agency obligations | 5.9 | \u2014 | 5.9 | \u2014 | |||||||||||
Corporate debt securities | 114.5 | \u2014 | 114.5 | \u2014 | |||||||||||
Auction rate securities | 5.9 | \u2014 | \u2014 | 5.9 | |||||||||||
Foreign government obligations | 3.6 | \u2014 | 3.6 | \u2014 | |||||||||||
U.S. government treasury securities | 108.1 | 108.1 | \u2014 | \u2014 | |||||||||||
State and local government obligations | 4.8 | \u2014 | 4.8 | \u2014 | |||||||||||
Mortgage and other asset-backed securities | 24.9 | \u2014 | 24.9 | \u2014 | |||||||||||
Total long-term investments | 267.7 | 108.1 | 153.7 | 5.9 | |||||||||||
Other long-term assets: | |||||||||||||||
Derivative assets | 10.4 | \u2014 | 10.4 | \u2014 | |||||||||||
Total assets | $ | 9,240.4 | $ | 8,940.9 | $ | 293.6 | $ | 5.9 | |||||||
Liabilities: | |||||||||||||||
Accrued liabilities: | |||||||||||||||
Derivative liabilities | $ | 6.5 | $ | 0.4 | $ | 6.1 | $ | \u2014 | |||||||
Other long-term liabilities: | |||||||||||||||
Derivative liabilities | 43.5 | \u2014 | 43.5 | \u2014 | |||||||||||
Total | $ | 50.0 | $ | 0.4 | $ | 49.6 | $ | \u2014 |
\u00a0 | \u00a0 | Fair\u00a0Value\u00a0Measurements\u00a0at\u00a0Reporting\u00a0Date\u00a0Using | |||||||||||||
\u00a0 | Balance at September 29, 2019 | Quoted\u00a0Prices in Active Markets\u00a0for\u00a0 Identical Assets (Level 1) | Significant\u00a0 Other Observable\u00a0 Inputs (Level 2) | Significant Unobservable\u00a0 Inputs (Level 3) | |||||||||||
Assets: | |||||||||||||||
Cash and cash equivalents | $ | 2,686.6 | $ | 2,686.6 | $ | \u2014 | $ | \u2014 | |||||||
Short-term investments: | |||||||||||||||
Available-for-sale debt securities | |||||||||||||||
Commercial paper | 0.5 | \u2014 | 0.5 | \u2014 | |||||||||||
Corporate debt securities | 3.5 | \u2014 | 3.5 | \u2014 | |||||||||||
Total available-for-sale debt securities | 4.0 | \u2014 | 4.0 | \u2014 | |||||||||||
Marketable equity securities | 66.5 | 66.5 | \u2014 | \u2014 | |||||||||||
Total short-term investments | 70.5 | 66.5 | 4.0 | \u2014 | |||||||||||
Prepaid expenses and other current assets: | |||||||||||||||
Derivative assets | 12.6 | \u2014 | 12.6 | \u2014 | |||||||||||
Long-term investments: | |||||||||||||||
Available-for-sale debt securities | |||||||||||||||
Corporate debt securities | 101.2 | \u2014 | 101.2 | \u2014 | |||||||||||
Auction rate securities | 5.8 | \u2014 | \u2014 | 5.8 | |||||||||||
U.S. government treasury securities | 106.5 | 106.5 | \u2014 | \u2014 | |||||||||||
State and local government obligations | 4.9 | \u2014 | 4.9 | \u2014 | |||||||||||
Mortgage and other asset-backed securities | 1.6 | \u2014 | 1.6 | \u2014 | |||||||||||
Total long-term investments | 220.0 | 106.5 | 107.7 | 5.8 | |||||||||||
Other long-term assets: | |||||||||||||||
Derivative assets | 26.3 | \u2014 | 26.3 | \u2014 | |||||||||||
Total assets | $ | 3,016.0 | $ | 2,859.6 | $ | 150.6 | $ | 5.8 | |||||||
Liabilities: | |||||||||||||||
Accrued liabilities: | |||||||||||||||
Derivative liabilities | $ | 5.7 | $ | 1.1 | $ | 4.6 | $ | \u2014 | |||||||
Other long-term liabilities: | |||||||||||||||
Derivative liabilities | 12.5 | \u2014 | 12.5 | \u2014 | |||||||||||
Total liabilities | $ | 18.2 | $ | 1.1 | $ | 17.1 | $ | \u2014 |
Sep\u00a029, 2019 | Sep\u00a030, 2018 | ||||||
Coffee: | |||||||
Unroasted | $ | 656.5 | $ | 588.6 | |||
Roasted | 276.5 | 281.2 | |||||
Other merchandise held for sale | 288.0 | 273.1 | |||||
Packaging and other supplies | 308.4 | 257.6 | |||||
Total | $ | 1,529.4 | $ | 1,400.5 |
Sep\u00a029, 2019 | Sep\u00a030, 2018 | ||||||
Coffee: | |||||||
Unroasted | $ | 656.5 | $ | 588.6 | |||
Roasted | 276.5 | 281.2 | |||||
Other merchandise held for sale | 288.0 | 273.1 | |||||
Packaging and other supplies | 308.4 | 257.6 | |||||
Total | $ | 1,529.4 | $ | 1,400.5 |
Sep\u00a029, 2019 | Sep\u00a030, 2018 | ||||||
Equity method investments | $ | 336.1 | $ | 296.0 | |||
Other investments | 59.9 | 38.7 | |||||
Total | $ | 396.0 | $ | 334.7 |
Sep\u00a029, 2019 | Sep\u00a030, 2018 | ||||||
Equity method investments | $ | 336.1 | $ | 296.0 | |||
Other investments | 59.9 | 38.7 | |||||
Total | $ | 396.0 | $ | 334.7 |
Sep\u00a029, 2019 | Sep\u00a030, 2018 | ||||||
Income tax receivable | $ | 141.1 | $ | 955.4 | |||
Other prepaid expenses and current assets | 347.1 | 507.4 | |||||
Total prepaid expenses and current assets | $ | 488.2 | $ | 1,462.8 |
Sep\u00a029, 2019 | Sep\u00a030, 2018 | ||||||
Land | $ | 46.8 | $ | 46.8 | |||
Buildings | 691.5 | 557.3 | |||||
Leasehold improvements | 7,948.6 | 7,372.8 | |||||
Store equipment | 2,659.5 | 2,400.2 | |||||
Roasting equipment | 769.6 | 658.8 | |||||
Furniture, fixtures and other | 1,799.0 | 1,659.3 | |||||
Work in progress | 358.5 | 501.9 | |||||
Property, plant and equipment, gross | 14,273.5 | 13,197.1 | |||||
Accumulated depreciation | (7,841.8 | ) | (7,268.0 | ) | |||
Property, plant and equipment, net | $ | 6,431.7 | $ | 5,929.1 |
Sep\u00a029, 2019 | Sep\u00a030, 2018 | ||||||
Accrued occupancy costs | $ | 176.9 | $ | 164.2 | |||
Accrued dividends payable | 485.7 | 445.4 | |||||
Accrued capital and other operating expenditures | 703.9 | 745.4 | |||||
Self insurance reserves | 210.5 | 213.7 | |||||
Accrued business taxes | 176.7 | 183.8 | |||||
Total accrued liabilities | $ | 1,753.7 | $ | 1,752.5 |
Sep\u00a029, 2019 | Sep\u00a030, 2018 | ||||||
Income tax receivable | $ | 141.1 | $ | 955.4 | |||
Other prepaid expenses and current assets | 347.1 | 507.4 | |||||
Total prepaid expenses and current assets | $ | 488.2 | $ | 1,462.8 |
Sep\u00a029, 2019 | Sep\u00a030, 2018 | ||||||
Land | $ | 46.8 | $ | 46.8 | |||
Buildings | 691.5 | 557.3 | |||||
Leasehold improvements | 7,948.6 | 7,372.8 | |||||
Store equipment | 2,659.5 | 2,400.2 | |||||
Roasting equipment | 769.6 | 658.8 | |||||
Furniture, fixtures and other | 1,799.0 | 1,659.3 | |||||
Work in progress | 358.5 | 501.9 | |||||
Property, plant and equipment, gross | 14,273.5 | 13,197.1 | |||||
Accumulated depreciation | (7,841.8 | ) | (7,268.0 | ) | |||
Property, plant and equipment, net | $ | 6,431.7 | $ | 5,929.1 |
Sep\u00a029, 2019 | Sep\u00a030, 2018 | ||||||
Accrued occupancy costs | $ | 176.9 | $ | 164.2 | |||
Accrued dividends payable | 485.7 | 445.4 | |||||
Accrued capital and other operating expenditures | 703.9 | 745.4 | |||||
Self insurance reserves | 210.5 | 213.7 | |||||
Accrued business taxes | 176.7 | 183.8 | |||||
Total accrued liabilities | $ | 1,753.7 | $ | 1,752.5 |
(in millions) | Sep\u00a029, 2019 | Sep\u00a030, 2018 | |||||
Trade names, trademarks and patents | $ | 203.4 | $ | 215.9 | |||
Other indefinite-lived intangible assets | \u2014 | 15.1 | |||||
Total indefinite-lived intangible assets | $ | 203.4 | $ | 231.0 |
Americas | International | Channel Development | Corporate and Other | Total | |||||||||||||||
Goodwill balance at October 2, 2017 | $ | 211.6 | $ | 892.7 | $ | 30.2 | $ | 404.7 | $ | 1,539.2 | |||||||||
Acquisition/(divestiture) | \u2014 | 2,164.0 | (1.5 | ) | \u2014 | 2,162.5 | |||||||||||||
Impairment | \u2014 | (37.6 | ) | \u2014 | \u2014 | (37.6 | ) | ||||||||||||
Other | 285.8 | (15.9 | ) | 6.0 | (398.4 | ) | (122.5 | ) | |||||||||||
Goodwill balance at October 1, 2018 | $ | 497.4 | $ | 3,003.2 | $ | 34.7 | $ | 6.3 | $ | 3,541.6 | |||||||||
Acquisition/(divestiture) | \u2014 | (5.5 | ) | \u2014 | \u2014 | (5.5 | ) | ||||||||||||
Impairment | \u2014 | (5.3 | ) | \u2014 | (5.2 | ) | (10.5 | ) | |||||||||||
Other | (0.7 | ) | (34.0 | ) | \u2014 | (0.1 | ) | (34.8 | ) | ||||||||||
Goodwill balance at September 30, 2019 | $ | 496.7 | $ | 2,958.4 | $ | 34.7 | $ | 1.0 | $ | 3,490.8 |
Sep\u00a029, 2019 | Sep\u00a030, 2018 | ||||||||||||||||||||||
(in millions) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||
Acquired and reacquired rights | $ | 1,075.0 | $ | (537.2 | ) | $ | 537.8 | $ | 1,081.7 | $ | (320.1 | ) | $ | 761.6 | |||||||||
Acquired trade secrets and processes | 27.6 | (19.2 | ) | 8.4 | 27.6 | (16.5 | ) | 11.1 | |||||||||||||||
Trade names, trademarks and patents | 40.6 | (22.9 | ) | 17.7 | 33.0 | (19.5 | ) | 13.5 | |||||||||||||||
Licensing agreements | 16.2 | (12.2 | ) | 4.0 | 14.3 | (5.1 | ) | 9.2 | |||||||||||||||
Other finite-lived intangible assets | 22.0 | (11.5 | ) | 10.5 | 25.6 | (9.8 | ) | 15.8 | |||||||||||||||
Total finite-lived intangible assets | $ | 1,181.4 | $ | (603.0 | ) | $ | 578.4 | $ | 1,182.2 | $ | (371.0 | ) | $ | 811.2 |
Fiscal Year Ending | |||
2020 | $ | 214.6 | |
2021 | 194.0 | ||
2022 | 160.4 | ||
2023 | 2.8 | ||
2024 | 2.1 | ||
Thereafter | 4.5 | ||
Total estimated future amortization expense | $ | 578.4 |
(in millions) | Sep\u00a029, 2019 | Sep\u00a030, 2018 | |||||
Trade names, trademarks and patents | $ | 203.4 | $ | 215.9 | |||
Other indefinite-lived intangible assets | \u2014 | 15.1 | |||||
Total indefinite-lived intangible assets | $ | 203.4 | $ | 231.0 |
Americas | International | Channel Development | Corporate and Other | Total | |||||||||||||||
Goodwill balance at October 2, 2017 | $ | 211.6 | $ | 892.7 | $ | 30.2 | $ | 404.7 | $ | 1,539.2 | |||||||||
Acquisition/(divestiture) | \u2014 | 2,164.0 | (1.5 | ) | \u2014 | 2,162.5 | |||||||||||||
Impairment | \u2014 | (37.6 | ) | \u2014 | \u2014 | (37.6 | ) | ||||||||||||
Other | 285.8 | (15.9 | ) | 6.0 | (398.4 | ) | (122.5 | ) | |||||||||||
Goodwill balance at October 1, 2018 | $ | 497.4 | $ | 3,003.2 | $ | 34.7 | $ | 6.3 | $ | 3,541.6 | |||||||||
Acquisition/(divestiture) | \u2014 | (5.5 | ) | \u2014 | \u2014 | (5.5 | ) | ||||||||||||
Impairment | \u2014 | (5.3 | ) | \u2014 | (5.2 | ) | (10.5 | ) | |||||||||||
Other | (0.7 | ) | (34.0 | ) | \u2014 | (0.1 | ) | (34.8 | ) | ||||||||||
Goodwill balance at September 30, 2019 | $ | 496.7 | $ | 2,958.4 | $ | 34.7 | $ | 1.0 | $ | 3,490.8 |
Sep\u00a029, 2019 | Sep\u00a030, 2018 | ||||||||||||||||||||||
(in millions) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||
Acquired and reacquired rights | $ | 1,075.0 | $ | (537.2 | ) | $ | 537.8 | $ | 1,081.7 | $ | (320.1 | ) | $ | 761.6 | |||||||||
Acquired trade secrets and processes | 27.6 | (19.2 | ) | 8.4 | 27.6 | (16.5 | ) | 11.1 | |||||||||||||||
Trade names, trademarks and patents | 40.6 | (22.9 | ) | 17.7 | 33.0 | (19.5 | ) | 13.5 | |||||||||||||||
Licensing agreements | 16.2 | (12.2 | ) | 4.0 | 14.3 | (5.1 | ) | 9.2 | |||||||||||||||
Other finite-lived intangible assets | 22.0 | (11.5 | ) | 10.5 | 25.6 | (9.8 | ) | 15.8 | |||||||||||||||
Total finite-lived intangible assets | $ | 1,181.4 | $ | (603.0 | ) | $ | 578.4 | $ | 1,182.2 | $ | (371.0 | ) | $ | 811.2 |
Fiscal Year Ending | |||
2020 | $ | 214.6 | |
2021 | 194.0 | ||
2022 | 160.4 | ||
2023 | 2.8 | ||
2024 | 2.1 | ||
Thereafter | 4.5 | ||
Total estimated future amortization expense | $ | 578.4 |
Sep\u00a029, 2019 | Sep\u00a030, 2018 | Stated Interest Rate | Effective Interest Rate (1) | |||||||||||||||
Issuance | Face Value | Estimated Fair Value | Face Value | Estimated Fair Value | ||||||||||||||
December 2018 notes | $ | \u2014 | $ | \u2014 | $ | 350.0 | $ | 350 | 2.000 | % | 2.012 | % | ||||||
November 2020 notes | 500.0 | 501 | 500.0 | 490 | 2.200 | % | 2.228 | % | ||||||||||
February 2021 notes | 500.0 | 500 | 500.0 | 489 | 2.100 | % | 2.293 | % | ||||||||||
February 2021 notes | 250.0 | 250 | 250.0 | 244 | 2.100 | % | 1.600 | % | ||||||||||
June 2022 notes | 500.0 | 509 | 500.0 | 486 | 2.700 | % | 2.819 | % | ||||||||||
February 2023 notes | 1,000.0 | 1,033 | 1,000.0 | 986 | 3.100 | % | 3.107 | % | ||||||||||
October 2023 notes (2) | 750.0 | 798 | 750.0 | 759 | 3.850 | % | 2.859 | % | ||||||||||
March 2024 notes (3) | 788.3 | 795 | 748.4 | 743 | 0.372 | % | 0.462 | % | ||||||||||
August 2025 notes | 1,250.0 | 1,351 | 1,250.0 | 1,249 | 3.800 | % | 3.721 | % | ||||||||||
June 2026 notes | 500.0 | 502 | 500.0 | 451 | 2.450 | % | 2.511 | % | ||||||||||
February 2028 notes | 600.0 | 644 | 600.0 | 576 | 3.500 | % | 3.529 | % | ||||||||||
November 2028 notes | 750.0 | 837 | 750.0 | 754 | 4.000 | % | 3.958 | % | ||||||||||
May 2029 notes (4) | 1,000.0 | 1,080 | \u2014 | \u2014 | 3.550 | % | 3.871 | % | ||||||||||
June 2045 notes | 350.0 | 390 | 350.0 | 330 | 4.300 | % | 4.348 | % | ||||||||||
December 2047 notes | 500.0 | 518 | 500.0 | 438 | 3.750 | % | 3.765 | % | ||||||||||
November 2048 notes | 1,000.0 | 1,160 | 1,000.0 | 977 | 4.500 | % | 4.504 | % | ||||||||||
May 2049 notes (4) | 1,000.0 | 1,165 | \u2014 | \u2014 | 4.450 | % | 4.433 | % | ||||||||||
\u00a0\u00a0\u00a0Total | 11,238.3 | 12,033 | 9,548.4 | 9,322 | ||||||||||||||
Aggregate debt issuance costs and unamortized premium/(discount), net | (83.1 | ) | (69.3 | ) | ||||||||||||||
Hedge accounting fair value adjustment (2) | 11.8 | (39.0 | ) | |||||||||||||||
\u00a0\u00a0\u00a0Total | $ | 11,167.0 | $ | 9,440.1 |
(1)\u00a0 | 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. |
(2) \u00a0 | Amount includes the change in fair value due to changes in benchmark interest rates related to our October 2023 notes. Refer to Note 3, Derivative Financial Instruments, for additional information on our interest rate swap designated as a fair value hedge. |
(3) \u00a0 | Japanese yen-denominated long-term debt. |
(4)\u00a0 | Issued in May 2019. |
Fiscal Year | Total | ||
2020 | $ | \u2014 | |
2021 | 1,250.0 | ||
2022 | 500.0 | ||
2023 | 1,000.0 | ||
2024 | 1,538.3 | ||
Thereafter | 6,950.0 | ||
Total | $ | 11,238.3 |
Sep\u00a029, 2019 | Sep\u00a030, 2018 | Stated Interest Rate | Effective Interest Rate (1) | |||||||||||||||
Issuance | Face Value | Estimated Fair Value | Face Value | Estimated Fair Value | ||||||||||||||
December 2018 notes | $ | \u2014 | $ | \u2014 | $ | 350.0 | $ | 350 | 2.000 | % | 2.012 | % | ||||||
November 2020 notes | 500.0 | 501 | 500.0 | 490 | 2.200 | % | 2.228 | % | ||||||||||
February 2021 notes | 500.0 | 500 | 500.0 | 489 | 2.100 | % | 2.293 | % | ||||||||||
February 2021 notes | 250.0 | 250 | 250.0 | 244 | 2.100 | % | 1.600 | % | ||||||||||
June 2022 notes | 500.0 | 509 | 500.0 | 486 | 2.700 | % | 2.819 | % | ||||||||||
February 2023 notes | 1,000.0 | 1,033 | 1,000.0 | 986 | 3.100 | % | 3.107 | % | ||||||||||
October 2023 notes (2) | 750.0 | 798 | 750.0 | 759 | 3.850 | % | 2.859 | % | ||||||||||
March 2024 notes (3) | 788.3 | 795 | 748.4 | 743 | 0.372 | % | 0.462 | % | ||||||||||
August 2025 notes | 1,250.0 | 1,351 | 1,250.0 | 1,249 | 3.800 | % | 3.721 | % | ||||||||||
June 2026 notes | 500.0 | 502 | 500.0 | 451 | 2.450 | % | 2.511 | % | ||||||||||
February 2028 notes | 600.0 | 644 | 600.0 | 576 | 3.500 | % | 3.529 | % | ||||||||||
November 2028 notes | 750.0 | 837 | 750.0 | 754 | 4.000 | % | 3.958 | % | ||||||||||
May 2029 notes (4) | 1,000.0 | 1,080 | \u2014 | \u2014 | 3.550 | % | 3.871 | % | ||||||||||
June 2045 notes | 350.0 | 390 | 350.0 | 330 | 4.300 | % | 4.348 | % | ||||||||||
December 2047 notes | 500.0 | 518 | 500.0 | 438 | 3.750 | % | 3.765 | % | ||||||||||
November 2048 notes | 1,000.0 | 1,160 | 1,000.0 | 977 | 4.500 | % | 4.504 | % | ||||||||||
May 2049 notes (4) | 1,000.0 | 1,165 | \u2014 | \u2014 | 4.450 | % | 4.433 | % | ||||||||||
\u00a0\u00a0\u00a0Total | 11,238.3 | 12,033 | 9,548.4 | 9,322 | ||||||||||||||
Aggregate debt issuance costs and unamortized premium/(discount), net | (83.1 | ) | (69.3 | ) | ||||||||||||||
Hedge accounting fair value adjustment (2) | 11.8 | (39.0 | ) | |||||||||||||||
\u00a0\u00a0\u00a0Total | $ | 11,167.0 | $ | 9,440.1 |
(1)\u00a0 | 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. |
(2) \u00a0 | Amount includes the change in fair value due to changes in benchmark interest rates related to our October 2023 notes. Refer to Note 3, Derivative Financial Instruments, for additional information on our interest rate swap designated as a fair value hedge. |
(3) \u00a0 | Japanese yen-denominated long-term debt. |
Fiscal Year | Total | ||
2020 | $ | \u2014 | |
2021 | 1,250.0 | ||
2022 | 500.0 | ||
2023 | 1,000.0 | ||
2024 | 1,538.3 | ||
Thereafter | 6,950.0 | ||
Total | $ | 11,238.3 |
Fiscal Year Ended | Sep\u00a029, 2019 | Sep\u00a030, 2018 | Oct\u00a01, 2017 | ||||||||
Minimum rent | $ | 1,441.7 | $ | 1,424.5 | $ | 1,185.7 | |||||
Contingent rent | 224.3 | 200.7 | 143.5 | ||||||||
Total | $ | 1,666.0 | $ | 1,625.2 | $ | 1,329.2 |
Fiscal Year Ending | Operating Leases | Lease Financing Arrangements | |||||
2020 | $ | 1,432.9 | $ | 5.2 | |||
2021 | 1,342.2 | 5.2 | |||||
2022 | 1,247.4 | 5.0 | |||||
2023 | 1,124.3 | 5.0 | |||||
2024 | 996.4 | 4.9 | |||||
Thereafter | 4,087.7 | 42.6 | |||||
Total minimum lease payments | $ | 10,230.9 | $ | 67.9 |
Fiscal Year Ended | Sep\u00a029, 2019 | Sep\u00a030, 2018 | Oct\u00a01, 2017 | ||||||||
Minimum rent | $ | 1,441.7 | $ | 1,424.5 | $ | 1,185.7 | |||||
Contingent rent | 224.3 | 200.7 | 143.5 | ||||||||
Total | $ | 1,666.0 | $ | 1,625.2 | $ | 1,329.2 |
Fiscal Year Ending | Operating Leases | Lease Financing Arrangements | |||||
2020 | $ | 1,432.9 | $ | 5.2 | |||
2021 | 1,342.2 | 5.2 | |||||
2022 | 1,247.4 | 5.0 | |||||
2023 | 1,124.3 | 5.0 | |||||
2024 | 996.4 | 4.9 | |||||
Thereafter | 4,087.7 | 42.6 | |||||
Total minimum lease payments | $ | 10,230.9 | $ | 67.9 |
(in millions) | \u00a0Available-for-Sale Securities | \u00a0Cash Flow Hedges | \u00a0Net Investment Hedges | Translation Adjustment and Other | Total | ||||||||||||||
September\u00a029, 2019 | |||||||||||||||||||
Net gains/(losses) in AOCI, beginning of period | $ | (4.9 | ) | $ | 17.7 | $ | 19.6 | $ | (362.7 | ) | $ | (330.3 | ) | ||||||
Net gains/(losses) recognized in OCI before reclassifications | 8.2 | (10.7 | ) | (29.7 | ) | (143.7 | ) | (175.9 | ) | ||||||||||
Net (gains)/losses reclassified from AOCI to earnings | 0.6 | 4.0 | \u2014 | (1.7 | ) | 2.9 | |||||||||||||
Other comprehensive income/(loss) attributable to Starbucks | 8.8 | (6.7 | ) | (29.7 | ) | (145.4 | ) | (173.0 | ) | ||||||||||
Net gains/(losses) in AOCI, end of period | $ | 3.9 | $ | 11.0 | $ | (10.1 | ) | $ | (508.1 | ) | $ | (503.3 | ) |
(in millions) | \u00a0Available-for-Sale Securities | \u00a0Cash Flow Hedges | \u00a0Net Investment Hedges | Translation Adjustment and Other | Total | ||||||||||||||
September\u00a030, 2018 | |||||||||||||||||||
Net gains/(losses) in AOCI, beginning of period | $ | (2.5 | ) | $ | (4.1 | ) | $ | 14.0 | $ | (163.0 | ) | $ | (155.6 | ) | |||||
Net gains/(losses) recognized in OCI before reclassifications | (5.1 | ) | 17.9 | 5.6 | (216.6 | ) | (198.2 | ) | |||||||||||
Net (gains)/losses reclassified from AOCI to earnings | 2.7 | 3.9 | \u2014 | 16.9 | 23.5 | ||||||||||||||
Other comprehensive income/(loss) attributable to Starbucks | (2.4 | ) | 21.8 | 5.6 | (199.7 | ) | (174.7 | ) | |||||||||||
Net gains/(losses) in AOCI, end of period | $ | (4.9 | ) | $ | 17.7 | $ | 19.6 | $ | (362.7 | ) | $ | (330.3 | ) |
(in millions) | \u00a0Available-for-Sale Securities | \u00a0Cash Flow Hedges | \u00a0Net Investment Hedges | Translation Adjustment and Other | Total | ||||||||||||||
October\u00a01, 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 | ) | \u2014 | (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 | ) |
AOCI Components | Amounts Reclassified from AOCI | Affected Line Item in the Statements of Earnings | ||||||||||||
Fiscal Year Ended | ||||||||||||||
Sep\u00a029, 2019 | Sep\u00a030, 2018 | Oct\u00a01, 2017 | ||||||||||||
Gains/(losses) on available-for-sale securities | $ | 0.9 | $ | (3.6 | ) | $ | (4.1 | ) | Interest income and other, net | |||||
Gains/(losses) on cash flow hedges | (3.9 | ) | (3.9 | ) | 70.7 | |||||||||
Translation adjustment (1) | ||||||||||||||
Brazil | \u2014 | (24.1 | ) | \u2014 | Net gain resulting from divestiture of certain operations | |||||||||
East China joint venture | \u2014 | 7.2 | \u2014 | Gain resulting from acquisition of joint venture | ||||||||||
Taiwan joint venture | \u2014 | 1.4 | \u2014 | Net gain resulting from divestiture of certain operations | ||||||||||
Thailand | 1.7 | \u2014 | \u2014 | Net gain resulting from divestiture of certain operations | ||||||||||
Other | \u2014 | (1.7 | ) | 0.6 | Interest income and other, net | |||||||||
(1.3 | ) | (24.7 | ) | 67.2 | Total before tax | |||||||||
(1.6 | ) | 1.2 | (14.0 | ) | Tax (expense)/benefit | |||||||||
$ | (2.9 | ) | $ | (23.5 | ) | $ | 53.2 | Net of tax |
(in millions) | \u00a0Available-for-Sale Securities | \u00a0Cash Flow Hedges | \u00a0Net Investment Hedges | Translation Adjustment and Other | Total | ||||||||||||||
September\u00a029, 2019 | |||||||||||||||||||
Net gains/(losses) in AOCI, beginning of period | $ | (4.9 | ) | $ | 17.7 | $ | 19.6 | $ | (362.7 | ) | $ | (330.3 | ) | ||||||
Net gains/(losses) recognized in OCI before reclassifications | 8.2 | (10.7 | ) | (29.7 | ) | (143.7 | ) | (175.9 | ) | ||||||||||
Net (gains)/losses reclassified from AOCI to earnings | 0.6 | 4.0 | \u2014 | (1.7 | ) | 2.9 | |||||||||||||
Other comprehensive income/(loss) attributable to Starbucks | 8.8 | (6.7 | ) | (29.7 | ) | (145.4 | ) | (173.0 | ) | ||||||||||
Net gains/(losses) in AOCI, end of period | $ | 3.9 | $ | 11.0 | $ | (10.1 | ) | $ | (508.1 | ) | $ | (503.3 | ) |
(in millions) | \u00a0Available-for-Sale Securities | \u00a0Cash Flow Hedges | \u00a0Net Investment Hedges | Translation Adjustment and Other | Total | ||||||||||||||
September\u00a030, 2018 | |||||||||||||||||||
Net gains/(losses) in AOCI, beginning of period | $ | (2.5 | ) | $ | (4.1 | ) | $ | 14.0 | $ | (163.0 | ) | $ | (155.6 | ) | |||||
Net gains/(losses) recognized in OCI before reclassifications | (5.1 | ) | 17.9 | 5.6 | (216.6 | ) | (198.2 | ) | |||||||||||
Net (gains)/losses reclassified from AOCI to earnings | 2.7 | 3.9 | \u2014 | 16.9 | 23.5 | ||||||||||||||
Other comprehensive income/(loss) attributable to Starbucks | (2.4 | ) | 21.8 | 5.6 | (199.7 | ) | (174.7 | ) | |||||||||||
Net gains/(losses) in AOCI, end of period | $ | (4.9 | ) | $ | 17.7 | $ | 19.6 | $ | (362.7 | ) | $ | (330.3 | ) |
(in millions) | \u00a0Available-for-Sale Securities | \u00a0Cash Flow Hedges | \u00a0Net Investment Hedges | Translation Adjustment and Other | Total | ||||||||||||||
October\u00a01, 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 | ) | \u2014 | (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 | ) |
AOCI Components | Amounts Reclassified from AOCI | Affected Line Item in the Statements of Earnings | ||||||||||||
Fiscal Year Ended | ||||||||||||||
Sep\u00a029, 2019 | Sep\u00a030, 2018 | Oct\u00a01, 2017 | ||||||||||||
Gains/(losses) on available-for-sale securities | $ | 0.9 | $ | (3.6 | ) | $ | (4.1 | ) | Interest income and other, net | |||||
Gains/(losses) on cash flow hedges | (3.9 | ) | (3.9 | ) | 70.7 | |||||||||
Translation adjustment (1) | ||||||||||||||
Brazil | \u2014 | (24.1 | ) | \u2014 | Net gain resulting from divestiture of certain operations | |||||||||
East China joint venture | \u2014 | 7.2 | \u2014 | Gain resulting from acquisition of joint venture | ||||||||||
Taiwan joint venture | \u2014 | 1.4 | \u2014 | Net gain resulting from divestiture of certain operations | ||||||||||
Thailand | 1.7 | \u2014 | \u2014 | Net gain resulting from divestiture of certain operations | ||||||||||
Other | \u2014 | (1.7 | ) | 0.6 | Interest income and other, net | |||||||||
(1.3 | ) | (24.7 | ) | 67.2 | Total before tax | |||||||||
(1.6 | ) | 1.2 | (14.0 | ) | Tax (expense)/benefit | |||||||||
$ | (2.9 | ) | $ | (23.5 | ) | $ | 53.2 | Net of tax |
Fiscal Year Ended | Sep\u00a029, 2019 | Sep\u00a030, 2018 | Oct\u00a01, 2017 | ||||||||
Options | $ | 20.0 | $ | 28.0 | $ | 44.3 | |||||
RSUs | 288.0 | 222.3 | 131.7 | ||||||||
Total stock-based compensation expense recognized in the consolidated statements of earnings | $ | 308.0 | $ | 250.3 | $ | 176.0 | |||||
Total related tax benefit | $ | 59.3 | $ | 62.4 | $ | 57.6 | |||||
Total capitalized stock-based compensation included in net property, plant and equipment and inventories on the consolidated balance sheets | $ | 3.4 | $ | 3.5 | $ | 1.9 |
Employee Stock Options Granted During the Period | |||||||||||
Fiscal Year Ended | 2019 | 2018 | 2017 | ||||||||
Expected term (in years) | 4.1 | 3.6 | 3.9 | ||||||||
Expected stock price volatility | 21.6 | % | 20.5 | % | 21.6 | % | |||||
Risk-free interest rate | 2.9 | % | 2.1 | % | 1.5 | % | |||||
Expected dividend yield | 2.1 | % | 2.2 | % | 1.8 | % | |||||
Weighted average grant price | $ | 67.33 | $ | 56.56 | $ | 56.12 | |||||
Estimated fair value per option granted | $ | 11.06 | $ | 7.32 | $ | 8.56 |
Shares Subject\u00a0to Options | Weighted Average Exercise Price per\u00a0Share | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||
Outstanding, September 30, 2018 | 27.3 | $ | 42.13 | 5.2 | $ | 418 | ||||||
Granted | 0.5 | 67.33 | ||||||||||
Exercised | (11.6 | ) | 32.46 | |||||||||
Expired/forfeited | (1.0 | ) | 56.13 | |||||||||
Outstanding, September 29, 2019 | 15.2 | 49.45 | 5.0 | 592 | ||||||||
Exercisable, September 29, 2019 | 10.2 | 45.38 | 3.7 | 440 | ||||||||
Vested and expected to vest, September 29, 2019 | 14.9 | 49.33 | 5.0 | 583 |
Number of Shares | Weighted Average Grant\u00a0Date Fair\u00a0Value per Share | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||
Nonvested, September 30, 2018 | 11.2 | $ | 55.62 | 1.0 | $ | 636 | ||||||
Granted | 4.6 | 68.14 | ||||||||||
Vested | (4.6 | ) | 55.71 | |||||||||
Forfeited/canceled | (2.3 | ) | 59.88 | |||||||||
Nonvested, September 29, 2019 | 8.9 | 62.56 | 1.1 | 788 |
Fiscal Year Ended | Sep\u00a029, 2019 | Sep\u00a030, 2018 | Oct\u00a01, 2017 | ||||||||
Options | $ | 20.0 | $ | 28.0 | $ | 44.3 | |||||
RSUs | 288.0 | 222.3 | 131.7 | ||||||||
Total stock-based compensation expense recognized in the consolidated statements of earnings | $ | 308.0 | $ | 250.3 | $ | 176.0 | |||||
Total related tax benefit | $ | 59.3 | $ | 62.4 | $ | 57.6 | |||||
Total capitalized stock-based compensation included in net property, plant and equipment and inventories on the consolidated balance sheets | $ | 3.4 | $ | 3.5 | $ | 1.9 |
Employee Stock Options Granted During the Period | |||||||||||
Fiscal Year Ended | 2019 | 2018 | 2017 | ||||||||
Expected term (in years) | 4.1 | 3.6 | 3.9 | ||||||||
Expected stock price volatility | 21.6 | % | 20.5 | % | 21.6 | % | |||||
Risk-free interest rate | 2.9 | % | 2.1 | % | 1.5 | % | |||||
Expected dividend yield | 2.1 | % | 2.2 | % | 1.8 | % | |||||
Weighted average grant price | $ | 67.33 | $ | 56.56 | $ | 56.12 | |||||
Estimated fair value per option granted | $ | 11.06 | $ | 7.32 | $ | 8.56 |
Shares Subject\u00a0to Options | Weighted Average Exercise Price per\u00a0Share | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||
Outstanding, September 30, 2018 | 27.3 | $ | 42.13 | 5.2 | $ | 418 | ||||||
Granted | 0.5 | 67.33 | ||||||||||
Exercised | (11.6 | ) | 32.46 | |||||||||
Expired/forfeited | (1.0 | ) | 56.13 | |||||||||
Outstanding, September 29, 2019 | 15.2 | 49.45 | 5.0 | 592 | ||||||||
Exercisable, September 29, 2019 | 10.2 | 45.38 | 3.7 | 440 | ||||||||
Vested and expected to vest, September 29, 2019 | 14.9 | 49.33 | 5.0 | 583 |
Number of Shares | Weighted Average Grant\u00a0Date Fair\u00a0Value per Share | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||
Nonvested, September 30, 2018 | 11.2 | $ | 55.62 | 1.0 | $ | 636 | ||||||
Granted | 4.6 | 68.14 | ||||||||||
Vested | (4.6 | ) | 55.71 | |||||||||
Forfeited/canceled | (2.3 | ) | 59.88 | |||||||||
Nonvested, September 29, 2019 | 8.9 | 62.56 | 1.1 | 788 |
Fiscal Year Ended | Sep\u00a029, 2019 | Sep\u00a030, 2018 | Oct\u00a01, 2017 | ||||||||
United States | $ | 3,518.7 | $ | 4,826.0 | $ | 3,393.0 | |||||
Foreign | 947.5 | 954.0 | 924.5 | ||||||||
Total earnings before income taxes | $ | 4,466.2 | $ | 5,780.0 | $ | 4,317.5 |
Fiscal Year Ended | Sep\u00a029, 2019 | Sep\u00a030, 2018 | Oct\u00a01, 2017 | ||||||||
Current taxes: | |||||||||||
U.S. federal | $ | 1,414.3 | $ | 156.2 | $ | 931.0 | |||||
U.S. state and local | 447.8 | 52.0 | 170.8 | ||||||||
Foreign | 458.3 | 327.0 | 216.6 | ||||||||
Total current taxes | 2,320.4 | 535.2 | 1,318.4 | ||||||||
Deferred taxes: | |||||||||||
U.S. federal | (1,074.5 | ) | 633.7 | 121.2 | |||||||
U.S. state and local | (322.4 | ) | 101.5 | 14.2 | |||||||
Foreign | (51.9 | ) | (8.4 | ) | (21.2 | ) | |||||
Total deferred taxes | (1,448.8 | ) | 726.8 | 114.2 | |||||||
Total income tax expense | $ | 871.6 | $ | 1,262.0 | $ | 1,432.6 |
Fiscal Year Ended | Sep\u00a029, 2019 | Sep\u00a030, 2018 | Oct\u00a01, 2017 | |||||
Statutory rate | 21.0 | \u00a0% | 24.5 | \u00a0% | 35.0 | \u00a0% | ||
State income taxes, net of federal tax benefit | 2.1 | 2.1 | 2.8 | |||||
Foreign rate differential | (0.1 | ) | (0.1 | ) | (2.8 | ) | ||
Excess tax benefits of stock-based compensation | (2.1 | ) | (0.9 | ) | \u2014 | |||
Residual tax on foreign earnings | 1.7 | \u2014 | \u2014 | |||||
Foreign derived intangible income | (1.5 | ) | \u2014 | \u2014 | ||||
Tax impacts related to sale of certain operations | (1.3 | ) | \u2014 | \u2014 | ||||
Domestic production activity deduction | \u2014 | \u2014 | (1.8 | ) | ||||
Gain resulting from acquisition of joint venture | \u2014 | (5.8 | ) | \u2014 | ||||
Impact of the Tax Act | \u2014 | 2.8 | \u2014 | |||||
Other, net | (0.3 | ) | (0.8 | ) | \u2014 | |||
Effective tax rate | 19.5 | \u00a0% | 21.8 | \u00a0% | 33.2 | \u00a0% |
Sep\u00a029, 2019 | Sep\u00a030, 2018 | ||||||
Deferred tax assets: | |||||||
Property, plant and equipment | $ | 66.5 | $ | 67.4 | |||
Intangible assets and goodwill | 230.0 | \u2014 | |||||
Accrued occupancy costs | 121.6 | 109.0 | |||||
Accrued compensation and related costs | 62.7 | 64.2 | |||||
Stored value card liability and deferred revenue | 1,649.0 | 144.2 | |||||
Stock-based compensation | 77.5 | 96.7 | |||||
Net operating losses | 75.6 | 79.2 | |||||
Other | 130.7 | 129.5 | |||||
Total | $ | 2,413.6 | $ | 690.2 | |||
Valuation allowance | (75.1 | ) | (129.3 | ) | |||
Total deferred tax asset, net of valuation allowance | $ | 2,338.5 | $ | 560.9 | |||
Deferred tax liabilities: | |||||||
Property, plant and equipment | (400.9 | ) | (348.1 | ) | |||
Intangible assets and goodwill | (209.9 | ) | (274.2 | ) | |||
Other | (148.3 | ) | (74.1 | ) | |||
Total | (759.1 | ) | (696.4 | ) | |||
Net deferred tax asset (liability) | $ | 1,579.4 | $ | (135.5 | ) | ||
Reported as: | |||||||
Deferred income tax assets | 1,765.8 | 134.7 | |||||
Deferred income tax liabilities (included in Other long-term liabilities) | (186.4 | ) | (270.2 | ) | |||
Net deferred tax asset (liability) | $ | 1,579.4 | $ | (135.5 | ) |
Sep\u00a029, 2019 | Sep\u00a030, 2018 | Oct\u00a01, 2017 | |||||||||
Beginning balance | $ | 224.6 | $ | 196.9 | $ | 146.5 | |||||
Increase related to prior year tax positions | 3.8 | 17.5 | 10.4 | ||||||||
Decrease related to prior year tax positions | (75.3 | ) | (41.8 | ) | \u2014 | ||||||
Increase related to current year tax positions | 18.5 | 62.4 | 41.3 | ||||||||
Decreases related to settlements with taxing authorities | (16.4 | ) | (4.5 | ) | \u2014 | ||||||
Decrease related to lapsing of statute of limitations | (23.1 | ) | (5.9 | ) | (1.3 | ) | |||||
Ending balance | $ | 132.1 | $ | 224.6 | $ | 196.9 |
Fiscal Year Ended | Sep\u00a029, 2019 | Sep\u00a030, 2018 | Oct\u00a01, 2017 | ||||||||
United States | $ | 3,518.7 | $ | 4,826.0 | $ | 3,393.0 | |||||
Foreign | 947.5 | 954.0 | 924.5 | ||||||||
Total earnings before income taxes | $ | 4,466.2 | $ | 5,780.0 | $ | 4,317.5 |
Fiscal Year Ended | Sep\u00a029, 2019 | Sep\u00a030, 2018 | Oct\u00a01, 2017 | ||||||||
Current taxes: | |||||||||||
U.S. federal | $ | 1,414.3 | $ | 156.2 | $ | 931.0 | |||||
U.S. state and local | 447.8 | 52.0 | 170.8 | ||||||||
Foreign | 458.3 | 327.0 | 216.6 | ||||||||
Total current taxes | 2,320.4 | 535.2 | 1,318.4 | ||||||||
Deferred taxes: | |||||||||||
U.S. federal | (1,074.5 | ) | 633.7 | 121.2 | |||||||
U.S. state and local | (322.4 | ) | 101.5 | 14.2 | |||||||
Foreign | (51.9 | ) | (8.4 | ) | (21.2 | ) | |||||
Total deferred taxes | (1,448.8 | ) | 726.8 | 114.2 | |||||||
Total income tax expense | $ | 871.6 | $ | 1,262.0 | $ | 1,432.6 |
Fiscal Year Ended | Sep\u00a029, 2019 | Sep\u00a030, 2018 | Oct\u00a01, 2017 | |||||
Statutory rate | 21.0 | \u00a0% | 24.5 | \u00a0% | 35.0 | \u00a0% | ||
State income taxes, net of federal tax benefit | 2.1 | 2.1 | 2.8 | |||||
Foreign rate differential | (0.1 | ) | (0.1 | ) | (2.8 | ) | ||
Excess tax benefits of stock-based compensation | (2.1 | ) | (0.9 | ) | \u2014 | |||
Residual tax on foreign earnings | 1.7 | \u2014 | \u2014 | |||||
Foreign derived intangible income | (1.5 | ) | \u2014 | \u2014 | ||||
Tax impacts related to sale of certain operations | (1.3 | ) | \u2014 | \u2014 | ||||
Domestic production activity deduction | \u2014 | \u2014 | (1.8 | ) | ||||
Gain resulting from acquisition of joint venture | \u2014 | (5.8 | ) | \u2014 | ||||
Impact of the Tax Act | \u2014 | 2.8 | \u2014 | |||||
Other, net | (0.3 | ) | (0.8 | ) | \u2014 | |||
Effective tax rate | 19.5 | \u00a0% | 21.8 | \u00a0% | 33.2 | \u00a0% |
Sep\u00a029, 2019 | Sep\u00a030, 2018 | ||||||
Deferred tax assets: | |||||||
Property, plant and equipment | $ | 66.5 | $ | 67.4 | |||
Intangible assets and goodwill | 230.0 | \u2014 | |||||
Accrued occupancy costs | 121.6 | 109.0 | |||||
Accrued compensation and related costs | 62.7 | 64.2 | |||||
Stored value card liability and deferred revenue | 1,649.0 | 144.2 | |||||
Stock-based compensation | 77.5 | 96.7 | |||||
Net operating losses | 75.6 | 79.2 | |||||
Other | 130.7 | 129.5 | |||||
Total | $ | 2,413.6 | $ | 690.2 | |||
Valuation allowance | (75.1 | ) | (129.3 | ) | |||
Total deferred tax asset, net of valuation allowance | $ | 2,338.5 | $ | 560.9 | |||
Deferred tax liabilities: | |||||||
Property, plant and equipment | (400.9 | ) | (348.1 | ) | |||
Intangible assets and goodwill | (209.9 | ) | (274.2 | ) | |||
Other | (148.3 | ) | (74.1 | ) | |||
Total | (759.1 | ) | (696.4 | ) | |||
Net deferred tax asset (liability) | $ | 1,579.4 | $ | (135.5 | ) | ||
Reported as: | |||||||
Deferred income tax assets | 1,765.8 | 134.7 | |||||
Deferred income tax liabilities (included in Other long-term liabilities) | (186.4 | ) | (270.2 | ) | |||
Net deferred tax asset (liability) | $ | 1,579.4 | $ | (135.5 | ) |
Sep\u00a029, 2019 | Sep\u00a030, 2018 | Oct\u00a01, 2017 | |||||||||
Beginning balance | $ | 224.6 | $ | 196.9 | $ | 146.5 | |||||
Increase related to prior year tax positions | 3.8 | 17.5 | 10.4 | ||||||||
Decrease related to prior year tax positions | (75.3 | ) | (41.8 | ) | \u2014 | ||||||
Increase related to current year tax positions | 18.5 | 62.4 | 41.3 | ||||||||
Decreases related to settlements with taxing authorities | (16.4 | ) | (4.5 | ) | \u2014 | ||||||
Decrease related to lapsing of statute of limitations | (23.1 | ) | (5.9 | ) | (1.3 | ) | |||||
Ending balance | $ | 132.1 | $ | 224.6 | $ | 196.9 |
Fiscal Year Ended | Sep\u00a029, 2019 | Sep\u00a030, 2018 | Oct\u00a01, 2017 | ||||||||
Net earnings attributable to Starbucks | $ | 3,599.2 | $ | 4,518.3 | $ | 2,884.7 | |||||
Weighted average common shares outstanding (for basic calculation) | 1,221.2 | 1,382.7 | 1,449.5 | ||||||||
Dilutive effect of outstanding common stock options and RSUs | 12.0 | 11.9 | 12.0 | ||||||||
Weighted average common and common equivalent shares outstanding (for diluted calculation) | 1,233.2 | 1,394.6 | 1,461.5 | ||||||||
EPS\u00a0\u2014 basic | $ | 2.95 | $ | 3.27 | $ | 1.99 | |||||
EPS\u00a0\u2014 diluted | $ | 2.92 | $ | 3.24 | $ | 1.97 |
Fiscal Year Ended | Sep\u00a029, 2019 | Sep\u00a030, 2018 | Oct\u00a01, 2017 | ||||||||
Net earnings attributable to Starbucks | $ | 3,599.2 | $ | 4,518.3 | $ | 2,884.7 | |||||
Weighted average common shares outstanding (for basic calculation) | 1,221.2 | 1,382.7 | 1,449.5 | ||||||||
Dilutive effect of outstanding common stock options and RSUs | 12.0 | 11.9 | 12.0 | ||||||||
Weighted average common and common equivalent shares outstanding (for diluted calculation) | 1,233.2 | 1,394.6 | 1,461.5 | ||||||||
EPS\u00a0\u2014 basic | $ | 2.95 | $ | 3.27 | $ | 1.99 | |||||
EPS\u00a0\u2014 diluted | $ | 2.92 | $ | 3.24 | $ | 1.97 |
Fiscal Year Ended | Sep 29, 2019 | Sep\u00a030, 2018 | Oct\u00a01, 2017 | |||||||||||||||||
Beverage | $ | 15,921.2 | 60 | % | $ | 14,463.1 | 59 | % | $ | 12,915.0 | 58 | % | ||||||||
Food | 4,792.8 | 18 | % | 4,397.7 | 18 | % | 3,832.1 | 17 | % | |||||||||||
Packaged and single-serve coffees and teas | 2,126.8 | 8 | % | 2,797.5 | 11 | % | 2,883.6 | 13 | % | |||||||||||
Other (1) | 3,667.8 | 14 | % | 3,061.2 | 12 | % | 2,756.1 | 12 | % | |||||||||||
Total | $ | 26,508.6 | 100 | % | $ | 24,719.5 | 100 | % | $ | 22,386.8 | 100 | % |
(1)\u00a0 | \u201cOther\u201d primarily consists of royalty and licensing revenues, beverage-related ingredients, serveware, and ready-to-drink beverages, among other items. |
Fiscal Year Ended | Sep 29, 2019 | Sep\u00a030, 2018 | Oct\u00a01, 2017 | ||||||||
Net revenues: | |||||||||||
United States | $ | 18,622.7 | $ | 17,409.4 | $ | 16,527.1 | |||||
Other countries | 7,885.9 | 7,310.1 | 5,859.7 | ||||||||
Total | $ | 26,508.6 | $ | 24,719.5 | $ | 22,386.8 | |||||
Long-lived assets: | |||||||||||
United States | $ | 7,330.2 | $ | 5,635.9 | $ | 5,848.3 | |||||
Other countries | 6,235.5 | 6,026.3 | 3,234.0 | ||||||||
Total | $ | 13,565.7 | $ | 11,662.2 | $ | 9,082.3 |
(in millions) | Americas | International | Channel Development | Corporate and Other | Total | ||||||||||||||
Fiscal 2019 | |||||||||||||||||||
Total net revenues | $ | 18,259.0 | $ | 6,190.7 | $ | 1,992.6 | $ | 66.3 | $ | 26,508.6 | |||||||||
Depreciation and amortization expenses | 696.1 | 511.5 | 13.0 | 156.7 | 1,377.3 | ||||||||||||||
Income from equity investees | \u2014 | 102.4 | 195.6 | \u2014 | 298.0 | ||||||||||||||
Operating income/(loss) | 3,782.8 | 964.7 | 697.5 | (1,367.1 | ) | 4,077.9 | |||||||||||||
Total assets | $ | 4,446.7 | $ | 6,724.6 | $ | 132.2 | $ | 7,916.1 | $ | 19,219.6 | |||||||||
Fiscal 2018 | |||||||||||||||||||
Total net revenues | $ | 16,748.6 | $ | 5,551.2 | $ | 2,297.3 | $ | 122.4 | $ | 24,719.5 | |||||||||
Depreciation and amortization expenses | 641.0 | 447.6 | 1.3 | 157.1 | 1,247.0 | ||||||||||||||
Income from equity investees | \u2014 | 117.4 | 183.8 | \u2014 | 301.2 | ||||||||||||||
Operating income/(loss) | 3,485.2 | 872.8 | 927.1 | (1,401.8 | ) | 3,883.3 | |||||||||||||
Total assets | $ | 4,473.7 | $ | 6,361.9 | $ | 148.2 | $ | 13,172.6 | $ | 24,156.4 | |||||||||
Fiscal 2017 | |||||||||||||||||||
Total net revenues | $ | 15,629.4 | $ | 4,204.3 | $ | 2,256.6 | $ | 296.5 | $ | 22,386.8 | |||||||||
Depreciation and amortization expenses | 616.1 | 233.2 | 3.0 | 159.1 | 1,011.4 | ||||||||||||||
Income from equity investees | \u2014 | 197.0 | 194.4 | \u2014 | 391.4 | ||||||||||||||
Operating income/(loss) | 3,577.2 | 835.6 | 967.0 | (1,245.1 | ) | 4,134.7 | |||||||||||||
Total assets | $ | 3,374.9 | $ | 3,117.1 | $ | 129.1 | $ | 7,744.5 | $ | 14,365.6 |
Fiscal Year Ended | Sep 29, 2019 | Sep\u00a030, 2018 | Oct\u00a01, 2017 | |||||||||||||||||
Beverage | $ | 15,921.2 | 60 | % | $ | 14,463.1 | 59 | % | $ | 12,915.0 | 58 | % | ||||||||
Food | 4,792.8 | 18 | % | 4,397.7 | 18 | % | 3,832.1 | 17 | % | |||||||||||
Packaged and single-serve coffees and teas | 2,126.8 | 8 | % | 2,797.5 | 11 | % | 2,883.6 | 13 | % | |||||||||||
Other (1) | 3,667.8 | 14 | % | 3,061.2 | 12 | % | 2,756.1 | 12 | % | |||||||||||
Total | $ | 26,508.6 | 100 | % | $ | 24,719.5 | 100 | % | $ | 22,386.8 | 100 | % |
Fiscal Year Ended | Sep 29, 2019 | Sep\u00a030, 2018 | Oct\u00a01, 2017 | ||||||||
Net revenues: | |||||||||||
United States | $ | 18,622.7 | $ | 17,409.4 | $ | 16,527.1 | |||||
Other countries | 7,885.9 | 7,310.1 | 5,859.7 | ||||||||
Total | $ | 26,508.6 | $ | 24,719.5 | $ | 22,386.8 | |||||
Long-lived assets: | |||||||||||
United States | $ | 7,330.2 | $ | 5,635.9 | $ | 5,848.3 | |||||
Other countries | 6,235.5 | 6,026.3 | 3,234.0 | ||||||||
Total | $ | 13,565.7 | $ | 11,662.2 | $ | 9,082.3 |
(in millions) | Americas | International | Channel Development | Corporate and Other | Total | ||||||||||||||
Fiscal 2019 | |||||||||||||||||||
Total net revenues | $ | 18,259.0 | $ | 6,190.7 | $ | 1,992.6 | $ | 66.3 | $ | 26,508.6 | |||||||||
Depreciation and amortization expenses | 696.1 | 511.5 | 13.0 | 156.7 | 1,377.3 | ||||||||||||||
Income from equity investees | \u2014 | 102.4 | 195.6 | \u2014 | 298.0 | ||||||||||||||
Operating income/(loss) | 3,782.8 | 964.7 | 697.5 | (1,367.1 | ) | 4,077.9 | |||||||||||||
Total assets | $ | 4,446.7 | $ | 6,724.6 | $ | 132.2 | $ | 7,916.1 | $ | 19,219.6 | |||||||||
Fiscal 2018 | |||||||||||||||||||
Total net revenues | $ | 16,748.6 | $ | 5,551.2 | $ | 2,297.3 | $ | 122.4 | $ | 24,719.5 | |||||||||
Depreciation and amortization expenses | 641.0 | 447.6 | 1.3 | 157.1 | 1,247.0 | ||||||||||||||
Income from equity investees | \u2014 | 117.4 | 183.8 | \u2014 | 301.2 | ||||||||||||||
Operating income/(loss) | 3,485.2 | 872.8 | 927.1 | (1,401.8 | ) | 3,883.3 | |||||||||||||
Total assets | $ | 4,473.7 | $ | 6,361.9 | $ | 148.2 | $ | 13,172.6 | $ | 24,156.4 | |||||||||
Fiscal 2017 | |||||||||||||||||||
Total net revenues | $ | 15,629.4 | $ | 4,204.3 | $ | 2,256.6 | $ | 296.5 | $ | 22,386.8 | |||||||||
Depreciation and amortization expenses | 616.1 | 233.2 | 3.0 | 159.1 | 1,011.4 | ||||||||||||||
Income from equity investees | \u2014 | 197.0 | 194.4 | \u2014 | 391.4 | ||||||||||||||
Operating income/(loss) | 3,577.2 | 835.6 | 967.0 | (1,245.1 | ) | 4,134.7 | |||||||||||||
Total assets | $ | 3,374.9 | $ | 3,117.1 | $ | 129.1 | $ | 7,744.5 | $ | 14,365.6 |
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | |||||||||||||||
Fiscal 2019: | |||||||||||||||||||
Net revenues | $ | 6,632.7 | $ | 6,305.9 | $ | 6,823.0 | $ | 6,747.0 | $ | 26,508.6 | |||||||||
Operating income | 1,015.7 | 857.7 | 1,121.3 | 1,083.3 | 4,077.9 | ||||||||||||||
Net earnings attributable to Starbucks | 760.6 | 663.2 | 1,372.8 | 802.9 | 3,599.2 | ||||||||||||||
EPS\u00a0\u2014 diluted | 0.61 | 0.53 | 1.12 | 0.67 | 2.92 | ||||||||||||||
Fiscal 2018: | |||||||||||||||||||
Net revenues | $ | 6,073.7 | $ | 6,031.8 | $ | 6,310.3 | $ | 6,303.6 | $ | 24,719.5 | |||||||||
Operating income | 1,116.1 | 772.5 | 1,038.2 | 956.6 | 3,883.3 | ||||||||||||||
Net earnings attributable to Starbucks | 2,250.2 | 660.1 | 852.5 | 755.8 | 4,518.3 | ||||||||||||||
EPS\u00a0\u2014 diluted | 1.57 | 0.47 | 0.61 | 0.56 | 3.24 |
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | |||||||||||||||
Fiscal 2019: | |||||||||||||||||||
Net revenues | $ | 6,632.7 | $ | 6,305.9 | $ | 6,823.0 | $ | 6,747.0 | $ | 26,508.6 | |||||||||
Operating income | 1,015.7 | 857.7 | 1,121.3 | 1,083.3 | 4,077.9 | ||||||||||||||
Net earnings attributable to Starbucks | 760.6 | 663.2 | 1,372.8 | 802.9 | 3,599.2 | ||||||||||||||
EPS\u00a0\u2014 diluted | 0.61 | 0.53 | 1.12 | 0.67 | 2.92 | ||||||||||||||
Fiscal 2018: | |||||||||||||||||||
Net revenues | $ | 6,073.7 | $ | 6,031.8 | $ | 6,310.3 | $ | 6,303.6 | $ | 24,719.5 | |||||||||
Operating income | 1,116.1 | 772.5 | 1,038.2 | 956.6 | 3,883.3 | ||||||||||||||
Net earnings attributable to Starbucks | 2,250.2 | 660.1 | 852.5 | 755.8 | 4,518.3 | ||||||||||||||
EPS\u00a0\u2014 diluted | 1.57 | 0.47 | 0.61 | 0.56 | 3.24 |