STARBUCKS CORP, 10-Q filed on 8/2/2012
Quarterly Report
Document And Entity Information
In Millions, unless otherwise specified
9 Months Ended
Jul. 1, 2012
Jul. 25, 2012
Document And Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Jul. 01, 2012 
 
Document Fiscal Year Focus
2012 
 
Document Fiscal Period Focus
Q3 
 
Entity Registrant Name
STARBUCKS CORP 
 
Entity Central Index Key
0000829224 
 
Current Fiscal Year End Date
--09-30 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
760.0 
Condensed Consolidated Statements Of Earnings (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Jul. 1, 2012
Jul. 3, 2011
Jul. 1, 2012
Jul. 3, 2011
Net revenues:
 
 
 
 
Company-operated stores
$ 2,615.6 
$ 2,417.3 
$ 7,868.6 
$ 7,162.1 
Licensed stores
308.2 
248.7 
905.1 
740.8 
CPG, foodservice and other
379.8 
266.2 
1,161.7 
765.8 
Total net revenues
3,303.6 
2,932.2 
9,935.4 
8,668.7 
Cost of sales including occupancy costs
1,446.1 
1,237.5 
4,354.1 
3,601.0 
Store operating expenses
976.0 
917.1 
2,928.3 
2,672.2 
Other operating expenses
105.9 
100.0 
317.9 
289.0 
Depreciation and amortization expenses
136.7 
129.5 
408.6 
386.1 
General and administrative expenses
199.0 
190.2 
597.4 
557.0 
Total operating expenses
2,863.7 
2,574.3 
8,606.3 
7,505.3 
Income from equity investees
51.7 
44.3 
148.8 
116.9 
Operating income
491.6 
402.2 
1,477.9 
1,280.3 
Interest income and other, net
9.7 
16.0 
68.2 
50.3 
Interest expense
(8.9)
(8.5)
(26.2)
(23.5)
Earnings before income taxes
492.4 
409.7 
1,519.9 
1,307.1 
Income taxes
159.1 
129.9 
494.2 
417.2 
Net earnings including noncontrolling interests
333.3 
279.8 
1,025.7 
889.9 
Net earnings attributable to noncontrolling interests
0.2 
0.7 
0.6 
2.5 
Net earnings attributable to Starbucks
$ 333.1 
$ 279.1 
$ 1,025.1 
$ 887.4 
Earnings per share - basic
$ 0.44 
$ 0.37 
$ 1.36 
$ 1.19 
Earnings per share - diluted
$ 0.43 
$ 0.36 
$ 1.33 
$ 1.15 
Weighted average shares outstanding:
 
 
 
 
Basic
758.9 
750.5 
753.8 
748.8 
Diluted
776.8 
771.9 
772.9 
770.1 
Cash dividends declared per share
$ 0.17 
$ 0.13 
$ 0.51 
$ 0.39 
Condensed Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Jul. 1, 2012
Oct. 2, 2011
Current assets:
 
 
Cash and cash equivalents
$ 1,501.3 
$ 1,148.1 
Short-term investments
996.3 
902.6 
Accounts receivable, net
433.0 
386.5 
Inventories
1,249.2 
965.8 
Prepaid expenses and other current assets
172.9 
161.5 
Deferred income taxes, net
216.9 
230.4 
Total current assets
4,569.6 
3,794.9 
Long-term investments
140.1 
107.0 
Equity and cost investments
414.3 
372.3 
Property, plant and equipment, net
2,444.2 
2,355.0 
Other assets
404.0 
409.6 
Goodwill
336.7 
321.6 1
TOTAL ASSETS
8,308.9 
7,360.4 
LIABILITIES AND EQUITY
 
 
Accounts payable
402.2 
540.0 
Accrued liabilities
935.6 
940.9 
Insurance reserves
159.6 
145.6 
Deferred revenue
520.8 
449.3 
Total current liabilities
2,018.2 
2,075.8 
Long-term debt
549.6 
549.5 
Other long-term liabilities
353.1 
347.8 
Total liabilities
2,920.9 
2,973.1 
Shareholders' equity:
 
 
Common stock ($0.001 par value) - authorized, 1,200.0 shares; issued and outstanding, 759.8 and 744.8 shares, respectively (includes 3.4 common stock units in both periods)
0.8 
0.7 
Additional paid-in capital
450.9 
40.5 
Retained earnings
4,935.8 
4,297.4 
Accumulated other comprehensive income
(2.5)
46.3 
Total shareholders' equity
5,385.0 
4,384.9 
Noncontrolling interests
3.0 
2.4 
Total equity
5,388.0 
4,387.3 
TOTAL LIABILITIES AND EQUITY
$ 8,308.9 
$ 7,360.4 
Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Per Share data, unless otherwise specified
Jul. 1, 2012
Oct. 2, 2011
Statement of Financial Position [Abstract]
 
 
Common stock, par value
$ 0.001 
$ 0.001 
Common stock, shares authorized
1,200.0 
1,200.0 
Common stock, shares issued
759.8 
744.8 
Common stock, shares outstanding
759.8 
744.8 
Common stock, units
3.4 
3.4 
Condensed Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
9 Months Ended
Jul. 1, 2012
Jul. 3, 2011
OPERATING ACTIVITIES:
 
 
Net earnings including noncontrolling interests
$ 1,025.7 
$ 889.9 
Adjustments to reconcile net earnings to net cash provided by operating activities:
 
 
Depreciation and amortization
427.7 
408.2 
Deferred income taxes, net
33.6 
58.4 
Income earned from equity method investees, net of distributions
(37.7)
(30.9)
Stock-based compensation
114.8 
108.2 
Other
10.0 
20.8 
Cash provided/(used) by changes in operating assets and liabilities:
 
 
Inventories
(285.1)
(308.5)
Accounts payable
(139.1)
55.5 
Accrued liabilities
(13.8)
(82.3)
Deferred revenue
71.8 
73.5 
Prepaid expenses, other current assets and other assets
(81.0)
(66.1)
Net cash provided by operating activities
1,126.9 
1,126.7 
INVESTING ACTIVITIES:
 
 
Purchase of investments
(1,578.6)
(169.7)
Maturities and calls of investments
1,452.9 
333.7 
Acquisitions, net of cash acquired
(29.7)
0 
Additions to property, plant and equipment, net
(516.5)
(372.4)
Other
(12.3)
(8.6)
Net cash used by investing activities
(684.2)
(217.0)
FINANCING ACTIVITIES:
 
 
Purchase of noncontrolling interest
0 
(27.5)
Proceeds from issuance of common stock
155.2 
187.4 
Excess tax benefit from exercise of stock options
156.5 
87.3 
Cash dividends paid
(384.0)
(292.1)
Repurchase of common stock
(15.7)
(321.9)
Other
(0.5)
(0.6)
Net cash used by financing activities
(88.5)
(367.4)
Effect of exchange rate changes on cash and cash equivalents
(1.0)
14.5 
Net increase in cash and cash equivalents
353.2 
556.8 
CASH AND CASH EQUIVALENTS:
 
 
Beginning of period
1,148.1 
1,164.0 
End of period
1,501.3 
1,720.8 
Cash paid during the period for:
 
 
Interest, net of capitalized interest
17.2 
17.2 
Income taxes
$ 311.4 
$ 287.4 
Summary Of Significant Accounting Policies
Summary Of Significant Accounting Policies
Summary of Significant Accounting Policies
Financial Statement Preparation
The unaudited condensed consolidated financial statements as of July 1, 2012, and for the quarter and three quarters ended July 1, 2012 and July 3, 2011, have been prepared by Starbucks Corporation under the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, the financial information for the quarter and three quarters ended July 1, 2012 and July 3, 2011 reflects all adjustments and accruals, which are of a normal recurring nature, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods. In this Quarterly Report on Form 10-Q (“10-Q”) Starbucks Corporation is referred to as “Starbucks,” the “Company,” “we,” “us” or “our”.
The financial information as of October 2, 2011 is derived from our audited consolidated financial statements and notes for the fiscal year ended October 2, 2011 (“fiscal 2011”), included in Item 8 in the Fiscal 2011 Annual Report on Form 10-K (the “10-K”). The information included in this 10-Q should be read in conjunction with the footnotes and management’s discussion and analysis of the financial statements in the 10-K.
In the second quarter of fiscal 2012, we renamed our Global Consumer Products Group ("CPG") segment “Channel Development.”
The results of operations for the quarter and three quarters ended July 1, 2012 are not necessarily indicative of the results of operations that may be achieved for the entire fiscal year ending September 30, 2012 (“fiscal 2012”).
Recent Accounting Pronouncements
In September 2011, the Financial Accounting Standards Board (“FASB”) issued guidance that revises the requirements around how entities test goodwill for impairment. The guidance allows companies to perform a qualitative assessment before calculating the fair value of the reporting unit. If entities determine, on the basis of qualitative factors, that the fair value of the reporting unit is more likely than not greater than the carrying amount, a quantitative calculation would not be needed. We early-adopted this guidance effective for our fiscal 2012 annual goodwill impairment test, which we performed during the third fiscal quarter. The adoption of this guidance resulted in a change in how we performed our goodwill impairment assessment; however, it did not have a material impact on our financial statements.
In June 2011, the FASB issued guidance that revises the manner in which entities present comprehensive income in their financial statements. The guidance requires entities to report the components of comprehensive income in either a single, continuous statement or two separate but consecutive statements. The guidance will become effective for us at the beginning of our first quarter of fiscal 2013. The adoption of this new guidance will result in a change in how we present the components of comprehensive income, which is currently presented within our consolidated statements of equity.
In May 2011, the FASB issued guidance to amend the fair value measurement and disclosure requirements. The guidance requires the disclosure of quantitative information about unobservable inputs used, a description of the valuation processes used, and a qualitative discussion around the sensitivity of the measurements. The guidance became effective for us at the beginning of our second quarter of fiscal 2012. The adoption of this new guidance did not have a material impact on our financial statements.
Reclassifications
Change in shared service allocations
Effective at the beginning of fiscal 2012, we implemented the previously announced strategic realignment of our organizational structure designed to accelerate our global growth strategy. A president for each region, reporting directly to our chief executive officer, now oversees the company-operated retail business working closely with both the licensed and joint-venture business partners in each market. The regional presidents also work closely with our Channel Development team to continue building out our brands and channels in each region.
In connection with the changes to our organizational structure and reporting, we have changed the accountability for, and reporting of, certain indirect overhead costs. Certain indirect merchandising, manufacturing costs and back-office shared service costs, which were previously allocated to segment level costs of sales and operating expenses, are now managed at a corporate level and will be reported within unallocated corporate expenses. These expenses have therefore been removed from the segment level financial results. In order to conform prior period classifications with the new alignment, the historical consolidated financial statements have been recast with the following adjustments to previously reported amounts:
 
 
Quarter Ended July 3, 2011
 
Three Quarters Ended July 3, 2011
 
As Filed
 
Reclass
 
As Adjusted
 
As Filed
 
Reclass
 
As Adjusted
Total net revenues
$
2,932.2

 
$
—

 
$
2,932.2

 
$
8,668.7

 
$
—

 
$
8,668.7

Cost of sales including occupancy costs
1,246.1

 
(8.6
)
 
1,237.5

 
3,626.9

 
(25.9
)
 
3,601.0

Store operating expenses
934.5

 
(17.4
)
 
917.1

 
2,725.4

 
(53.2
)
 
2,672.2

Other operating expenses
102.4

 
(2.4
)
 
100.0

 
296.2

 
(7.2
)
 
289.0

Depreciation and amortization expenses
129.5

 
—

 
129.5

 
386.1

 
—

 
386.1

General and administrative expenses
161.8

 
28.4

 
190.2

 
470.7

 
86.3

 
557.0

Total operating expenses
2,574.3

 
—

 
2,574.3

 
7,505.3

 
—

 
7,505.3

Income from equity investees
44.3

 
—

 
44.3

 
116.9

 
—

 
116.9

Operating income
$
402.2

 
$
—

 
$
402.2

 
$
1,280.3

 
$
—

 
$
1,280.3


There was no impact on consolidated net revenues, total operating expenses, operating income, or net earnings as a result of this change. Additional discussion regarding the change in our organizational structure and segment results is included at Note 12.
Acquisition
Acquisition
Acquisition
On November 10, 2011, we acquired the outstanding shares of Evolution Fresh, Inc., a super-premium juice company, to expand our portfolio of product offerings and enter into the super-premium juice market. We acquired Evolution Fresh for a purchase price of $30 million in cash. The fair value of the net assets acquired on the acquisition date included $18 million of goodwill.
Evolution Fresh is its own operating segment and is reported in “Other” along with our Seattle’s Best Coffee operating segment, our Digital Ventures business, and unallocated corporate expenses.
Derivative Financial Instruments
Derivative Financial Instruments
Derivative Financial Instruments
Foreign Currency
We enter into forward and swap contracts to hedge portions of cash flows of anticipated revenue streams and inventory purchases in currencies other than the entity's functional currency. Net derivative losses from cash flow hedges of $5.0 million and $11.1 million, net of taxes, were included in accumulated other comprehensive income as of July 1, 2012 and October 2, 2011, respectively. Of the net derivative losses accumulated as of July 1, 2012, $2.6 million pertains to derivative instruments that will be dedesignated as cash flow hedges within 12 months and will also continue to experience fair value changes before affecting earnings. Outstanding contracts will expire within 15 months.
We also enter into net investment derivative instruments to hedge our equity method investment in Starbucks Coffee Japan, Ltd., to minimize foreign currency exposure. Net derivative losses from net investment hedges of $31.2 million and $34.2 million, net of taxes, were included in accumulated other comprehensive income as of July 1, 2012 and October 2, 2011, respectively. Outstanding contracts will expire within 32 months.
In addition to the hedging instruments above, to mitigate the translation risk of certain balance sheet items, we enter into certain foreign currency swap contracts that are not designated as hedging instruments. These contracts are recorded at fair value, with the changes in fair value recognized in net interest income and other on the consolidated statements of earnings. Gains and losses from these instruments are largely offset by the financial impact of translating foreign currency denominated payables and receivables, which is also recognized in net interest income and other.
Coffee
Depending on market conditions, we also enter into futures contracts to hedge a portion of anticipated cash flows under our price-to-be-fixed green coffee contracts, which are described further in Note 5. Net derivative losses of $35.0 million, net of taxes, were included in accumulated other comprehensive income as of July 1, 2012 related to coffee hedges. Of the net derivative losses accumulated as of July 1, 2012, $22.2 million pertains to derivative instruments that will be dedesignated as cash flow hedges within 12 months and will also continue to experience fair value changes before affecting earnings. Outstanding contracts will expire within 13 months. There was insignificant coffee hedge activity in the first three quarters of fiscal 2011.
Dairy
To mitigate the price uncertainty of a portion of our future purchases of dairy products, we enter into certain futures contracts that are not designated as hedging instruments. These contracts are recorded at fair value, with the changes in fair value recognized in net interest income and other. Gains and losses from these instruments are largely offset by price fluctuations on our dairy purchases which are included in cost of sales.
Diesel Fuel
To mitigate the price uncertainty of a portion of our future purchases of diesel fuel, we enter into certain swap contracts that are not designated as hedging instruments. These contracts are recorded at fair value, with the changes in fair value recognized in net interest income and other. Gains and losses from these instruments are largely offset by the financial impact of diesel fuel fluctuations on our shipping costs which are included in operating expenses.

The following tables present the pretax effect of derivative contracts designated as hedging instruments on earnings and other comprehensive income ("OCI") for the quarter and three quarters ended (in millions):
 
 
Foreign Currency
 
Coffee
Quarter Ended:
Jul 1, 2012
 
Jul 3, 2011
 
Jul 1, 2012
 
Jul 3, 2011
 
 
 
 
 
 
 
 
Cash Flow Hedges:
 
 
 
 
 
 
 
Gain/(Loss) recognized in earnings
$
(2.8
)
 
$
(4.7
)
 
$
(1.3
)
 
$
—

Gain/(Loss) recognized in OCI
$
(1.9
)
 
$
(5.4
)
 
$
(20.6
)
 
$
0.1

Net Investment Hedges:
 
 
 
 
 
 
 
Gain/(Loss) recognized in earnings
$
—

 
$
—

 
 
 
 
Gain/(Loss) recognized in OCI
$
(5.4
)
 
$
(5.2
)
 
 
 
 

 
Foreign Currency
 
Coffee
Three Quarters Ended:
Jul 1, 2012
 
Jul 3, 2011
 
Jul 1, 2012
 
Jul 3, 2011
 
 
 
 
 
 
 
 
Cash Flow Hedges:
 
 
 
 
 
 
 
Gain/(Loss) recognized in earnings
$
(8.6
)
 
$
(10.8
)
 
$
(1.3
)
 
$
—

Gain/(Loss) recognized in OCI
$
1.0

 
$
(13.4
)
 
$
(40.0
)
 
$
0.1

Net Investment Hedges:
 
 
 
 
 
 
 
Gain/(Loss) recognized in earnings
$
—

 
$
—

 
 
 
 
Gain/(Loss) recognized in OCI
$
4.9

 
$
(5.1
)
 
 
 
 

The amounts shown in the above tables as recognized in earnings for foreign currency and coffee hedges represent the realized gains/(losses) reclassified from OCI to net earnings during the year. The amounts shown as recognized in OCI are prior to these reclassifications.

The following table presents the pretax effect of derivative contracts not designated as hedging instruments on earnings for the quarter and three quarters ended (in millions):
 
 
Foreign Currency
 
Dairy
 
Diesel Fuel
 
Jul 1, 2012
 
Jul 3, 2011
 
Jul 1, 2012
 
Jul 3, 2011
 
Jul 1, 2012
 
Jul 3, 2011
Gain/(Loss) recognized in earnings for the quarter ended
$
4.2

 
$
(0.3
)
 
$
1.2

 
$
2.2

 
$
(0.9
)
 
$
(0.2
)
Gain/(Loss) recognized in earnings for the three quarters ended
$
—

 
$
(3.9
)
 
$
2.0

 
$
5.0

 
$
0.7

 
$
1.1




Notional amounts of outstanding derivative contracts as of July 1, 2012:
•
$384 million in foreign currency contracts
•
$183 million in coffee contracts
•
$41 million in dairy contracts
•
$29 million in diesel fuel contracts
Fair Value Measurements
Fair Value Measurements
Fair Value Measurements
Assets and Liabilities Measured at Fair Value on a Recurring Basis (in millions):

 
 
 
Fair Value Measurements at Reporting Date Using
 
Balance at
July 1, 2012
 
Quoted Prices
in Active
Markets for 
Identical Assets
(Level 1)
 
Significant 
Other Observable 
Inputs
(Level 2)
 
Significant
Unobservable  Inputs
(Level 3)
Assets:
 
 
 
 
 
 
 
Short-term investments:
 
 
 
 
 
 
 
Available-for-sale securities
 
 
 
 
 
 
 
Agency obligations
$
100.0

 
$
—

 
$
100.0

 
$
—

Commercial paper
193.9

 
—

 
193.9

 
—

Corporate debt securities
80.8

 
—

 
80.8

 
—

Government treasury securities
499.6

 
499.6

 
—

 
—

Certificates of deposit
65.9

 
—

 
65.9

 
—

Total available-for-sale securities
940.2

 
499.6

 
440.6

 
—

Trading securities
56.1

 
56.1

 
—

 
—

Total short-term investments
996.3

 
555.7

 
440.6

 
—

Long-term investments:
 
 
 
 
 
 
 
Agency obligations
4.0

 
—

 
4.0

 
—

Corporate debt securities
73.6

 
—

 
73.6

 
—

State and local government obligations
28.4

 
—

 
—

 
28.4

Certificates of deposit
34.1

 
—

 
34.1

 
—

Total long-term investments
140.1

 
—

 
111.7

 
28.4

Total
$
1,136.4

 
$
555.7

 
$
552.3

 
$
28.4

Liabilities:
 
 
 
 
 
 
 
Short-term derivatives:
 
 
 
 
 
 
 
       Foreign Currency
$
8.4

 
$
—

 
$
8.4

 
$
—

       Coffee
25.7

 
—

 
25.7

 
—

Total short-term derivatives
34.1

 
—

 
34.1

 
—

Long-term derivatives:
 
 
 
 
 
 
 
       Foreign Currency
2.3

 
—

 
2.3

 
—

       Coffee
3.8

 
—

 
3.8

 
—

Total long-term derivatives
6.1

 
—

 
6.1

 
—

Total
$
40.2

 
$
—

 
$
40.2

 
$
—


 
 
 
Fair Value Measurements at Reporting Date Using
 
Balance at
October 2, 2011
 
Quoted Prices
in Active
Markets for 
Identical Assets
(Level 1)
 
Significant 
Other Observable 
Inputs
(Level 2)
 
Significant
Unobservable  Inputs
(Level 3)
Assets:
 
 
 
 
 
 
 
Short-term investments:
 
 
 
 
 
 
 
Available-for-sale securities
 
 
 
 
 
 
 
Agency obligations
$
20.0

 
$
—

 
$
20.0

 
$
—

Commercial paper
87.0

 
—

 
87.0

 
—

Corporate debt securities
78.0

 
—

 
78.0

 
—

Government treasury securities
606.0

 
606.0

 
—

 
—

Certificates of deposit
64.0

 
—

 
64.0

 
—

Total available-for-sale securities
855.0

 
606.0

 
249.0

 
—

Trading securities
47.6

 
47.6

 
—

 
—

Total short-term investments
902.6

 
653.6

 
249.0

 
—

Long-term investments:
 
 
 
 
 
 
 
Corporate debt securities
67.0

 
—

 
67.0

 
—

State and local government obligations
28.0

 
—

 
—

 
28.0

Certificates of deposit
12.0

 
—

 
12.0

 
—

Total long-term investments
107.0

 
—

 
79.0

 
28.0

Total
$
1,009.6

 
$
653.6

 
$
328.0

 
$
28.0

Liabilities:
 
 
 
 
 
 
 
Short-term derivatives:
 
 
 
 
 
 
 
       Foreign Currency
$
20.1

 
$
—

 
$
20.1

 
$
—

       Coffee
1.2

 
—

 
1.2

 
—

Total short-term derivatives
21.3

 
—

 
21.3

 
—

Long-term derivatives:
 
 
 
 
 
 
 
       Foreign Currency
9.9

 
—

 
9.9

 
—

Total long-term derivatives
9.9

 
—

 
9.9

 
—

Total
$
31.2

 
$
—

 
$
31.2

 
$
—


Short-term and long-term derivatives are included in other accrued liabilities, and other long-term liabilities, respectively.
Gross unrealized holding gains and losses were not material as of July 1, 2012 and October 2, 2011.
Changes in Level 3 Instruments Measured at Fair Value on a Recurring Basis
Financial instruments measured using Level 3 inputs described above are comprised entirely of our auction rate securities (“ARS”).
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Assets and liabilities recognized or disclosed at fair value in the financial statements on a nonrecurring basis include items such as property, plant and equipment, goodwill and other intangible assets, equity and cost method investments, and other assets. These assets are measured at fair value if determined to be impaired.
During the quarter and three quarters ended July 1, 2012 and July 3, 2011, we recognized fair market value adjustments with a charge to earnings for these assets as follows (in millions):
 
 
Quarter Ended July 1, 2012
 
Three Quarters Ended July 1, 2012
 
Carrying
Value before
adjustment
 
Fair value
adjustment
 
Carrying
value after
adjustment
 
Carrying
Value before
adjustment
 
Fair value
adjustment
 
Carrying
value after
adjustment
Property, plant and equipment (1)
$
1.1

 
$
(0.7
)
 
$
0.4

 
$
4.4

 
$
(2.7
)
 
$
1.7


 
Quarter Ended July 3, 2011
 
Three Quarters Ended July 3, 2011
 
Carrying
Value before
adjustment
 
Fair value
adjustment
 
Carrying
value after
adjustment
 
Carrying
Value before
adjustment
 
Fair value
adjustment
 
Carrying
value after
adjustment
Property, plant and equipment (1)
$
1.7

 
$
(1.2
)
 
$
0.5

 
$
2.8

 
$
(2.1
)
 
$
0.7

Other assets (2)
$
1.6

 
$
(1.6
)
 
$
—

 
$
22.1

 
$
(22.1
)
 
$
—


 
(1)
These assets primarily consist of leasehold improvements in underperforming stores. The fair value was determined using a discounted cash flow model based on expected future store revenues and operating costs, using internal projections. The resulting impairment charge was included in store operating expenses.
(2)
The fair value was determined using a discounted cash flow model based on future expected revenues and operating costs, using internal projections. The resulting impairment charge was included in other operating expenses.
Fair Value of Other Financial Instruments
The estimated fair value of the $550 million of 6.25% Senior Notes based on the quoted market price (Level 2) was approximately $667 million and $648 million as of July 1, 2012 and October 2, 2011, respectively.
Inventories
Inventories
Inventories (in millions)
 
 
Jul 1, 2012
 
Oct 2, 2011
 
Jul 3, 2011
Coffee:
 
 
 
 
 
Unroasted
$
749.1

 
$
431.3

 
$
423.3

Roasted
225.8

 
246.5

 
190.5

Other merchandise held for sale
133.4

 
150.8

 
116.0

Packaging and other supplies
140.9

 
137.2

 
126.9

Total
$
1,249.2

 
$
965.8

 
$
856.7


Inventory levels vary due to seasonality, commodity market supply and price fluctuations. Also contributing to the increase in inventory over the prior year period was the growth of our Channel Development business.
As of July 1, 2012, we had committed to purchasing green coffee totaling $463 million under fixed-price contracts and an estimated $384 million under price-to-be-fixed contracts. As of July 1, 2012, approximately $183 million of our price-to-be-fixed contracts were effectively fixed through the use of futures contracts. Price-to-be-fixed contracts are purchase commitments whereby the quality, quantity, delivery period, and other negotiated terms are agreed upon, but the date at which the base “C” coffee commodity price component will be fixed has not yet been established. For these types of contracts, either Starbucks or the seller has the option to “fix” the base “C” coffee commodity price prior to the delivery date. Until prices are fixed, we estimate the total cost of these purchase commitments. We believe, based on relationships established with our suppliers in the past, the risk of non-delivery on these purchase commitments is remote.
Supplemental Balance Sheet Information
Supplemental Balance Sheet Information
Supplemental Balance Sheet Information (in millions)
 
Property, Plant and Equipment, net
Jul 1, 2012
 
Oct 2, 2011
 
 
 
 
Land
$
44.8

 
$
44.8

Buildings
222.6

 
218.5

Leasehold improvements
3,808.7

 
3,617.7

Store equipment
1,185.1

 
1,101.8

Roasting equipment
308.6

 
295.1

Furniture, fixtures and other
799.8

 
757.8

Work in progress
210.3

 
127.4

Property, plant and equipment, gross
6,579.9

 
6,163.1

Less accumulated depreciation
(4,135.7
)
 
(3,808.1
)
Property, plant and equipment, net
$
2,444.2

 
$
2,355.0



Other Assets
Jul 1, 2012
 
Oct 2, 2011
 
 
 
 
Other intangible assets
$
117.8

 
$
111.9

Other
286.2

 
297.7

Total other assets
$
404.0

 
$
409.6



Accrued Liabilities
Jul 1, 2012
 
Oct 2, 2011
 
 
 
 
Accrued compensation and related costs
$
350.3

 
$
364.4

Accrued occupancy costs
125.7

 
148.3

Accrued taxes
99.7

 
109.2

Accrued dividend payable
129.1

 
126.6

Other
230.8

 
192.4

Total accrued liabilities
$
935.6

 
$
940.9



Other Long-Term Liabilities
Jul 1, 2012
 
Oct 2, 2011
 
 
 
 
Deferred rent
$
206.7

 
$
215.2

Unrecognized tax benefits
74.3

 
56.7

Asset retirement obligations
53.8

 
50.1

Other
18.3

 
25.8

Total other long-term liabilities
$
353.1

 
$
347.8

Goodwill
Goodwill
Goodwill
Changes in the carrying amount of goodwill by reportable operating segment are as follows (in millions):
 
 
Americas
 
EMEA
 
China /
Asia Pacific
 
Channel
Development
 
Other
 
Total
Balance at October 2, 2011 (1)
 
 
 
 
 
 
 
 
 
 
 
Goodwill prior to impairment
$
162.9

 
$
63.0

 
$
74.8

 
$
23.8

 
$
5.7

 
$
330.2

Accumulated impairment charges
(8.6
)
 
—

 
—

 
—

 
—

 
(8.6
)
Goodwill
$
154.3

 
$
63.0

 
$
74.8

 
$
23.8

 
$
5.7

 
$
321.6

Acquisitions
11.8

 
—

 
—

 
—

 
5.8

 
17.6

Purchase price adjustment of previous acquisitions
—

 
—

 
—

 
—

 
—

 
—

Impairment
—

 
—

 
—

 
—

 
—

 
—

Other (2)
0.9

 
(3.6
)
 
0.2

 
—

 
—

 
(2.5
)
Balance at July 1, 2012
 
 
 
 
 
 
 
 
 
 
 
Goodwill prior to impairment
$
175.6

 
$
59.4

 
$
75.0

 
$
23.8

 
$
11.5

 
$
345.3

Accumulated impairment charges
(8.6
)
 
—

 
—

 
—

 
—

 
(8.6
)
Goodwill
$
167.0

 
$
59.4

 
$
75.0

 
$
23.8

 
$
11.5

 
$
336.7

 
(1)
In conjunction with the change in reportable operating segments, we reclassified goodwill by segment as of October 2, 2011.
(2)
Other is primarily comprised of changes in the goodwill balance as a result of foreign exchange fluctuations.
Equity
Equity
Equity
Changes in total equity (in millions):
 
Three Quarters Ended
 
Jul 1, 2012
 
Jul 3, 2011
Beginning balance of total equity
$
4,387.3

 
$
3,682.3

Net earnings including noncontrolling interest
1,025.7

 
889.9

Other comprehensive income / (loss)
(48.8
)
 
40.3

Comprehensive income
976.9

 
930.2

Stock-based compensation expense
116.3

 
109.8

Exercise of stock options
295.6

 
255.4

Sale of common stock
14.3

 
14.1

Repurchase of common stock
(15.7
)
 
(321.9
)
Cash dividends declared
(386.7
)
 
(292.9
)
Purchase of noncontrolling interest:
 
 
 
Included in additional paid-in capital
—

 
(28.0
)
Included in noncontrolling interests
—

 
(7.5
)
Ending balance of total equity
$
5,388.0

 
$
4,341.5


Components of accumulated other comprehensive income, net of tax (in millions):
 
 
Jul 1, 2012
 
Oct 2, 2011
Net unrealized gains / (losses) on available-for-sale securities
$
(0.5
)
 
$
(0.5
)
Net unrealized gains / (losses) on hedging instruments
(71.1
)
 
(45.3
)
Translation adjustment
69.1

 
92.1

Accumulated other comprehensive income
$
(2.5
)
 
$
46.3


In addition to 1.2 billion shares of authorized common stock with $0.001 par value per share, the Company has authorized 7.5 million shares of preferred stock, none of which was outstanding as of July 1, 2012.
Share repurchase activity (in millions, except for average price data):
 
 
Three Quarters Ended
 
Jul 1, 2012
 
Jul 3, 2011
Number of shares acquired
0.4

 
9.2

Average price per share of acquired shares
$
36.49

 
$
35.12

Total cost of acquired shares
$
15.7

 
$
321.9


As of July 1, 2012, 24.0 million shares remained available for repurchase under the current authorization.

During the third quarter of fiscal 2012, Starbucks Board of Directors declared a quarterly cash dividend to shareholders of $0.17 per share to be paid on August 24, 2012 to shareholders of record as of the close of business on August 8, 2012.
Employee Stock Plans
Employee Stock Plans
Employee Stock Plans
As of July 1, 2012, there were 32.4 million shares of common stock available for issuance pursuant to future equity-based compensation awards and employee stock purchase plans.
Stock-based compensation expense recognized in the consolidated statements of earnings (in millions):
 
 
Quarter Ended
 
Three Quarters Ended
 
Jul 1, 2012
 
Jul 3, 2011
 
Jul 1, 2012
 
Jul 3, 2011
Options
$
11.2

 
$
14.3

 
$
35.4

 
$
46.8

Restricted Stock Units (“RSUs”)
27.6

 
22.7

 
79.4

 
61.4

Total stock-based compensation
$
38.8

 
$
37.0

 
$
114.8

 
$
108.2


Value of awards granted and exercised during the period:
 
 
Quarter Ended
 
Three Quarters Ended
 
Jul 1, 2012
 
Jul 3, 2011
 
Jul 1, 2012
 
Jul 3, 2011
Estimated fair value per option granted
$
14.58

 
$
10.28

 
$
12.79

 
$
9.53

Weighted average option grant price
$
54.93

 
$
35.86

 
$
44.07

 
$
31.18

Weighted average price per option exercised
$
17.23

 
$
15.79

 
$
15.90

 
$
13.98

Weighted average RSU grant price
$
55.38

 
$
35.77

 
$
43.93

 
$
30.94


Stock option and RSU transactions from October 2, 2011 through July 1, 2012 (in millions):
 
 
Stock Option
 
RSUs
Options outstanding/Nonvested RSUs, October 2, 2011
45.3

 
8.3

Granted
3.3

 
4.0

Options exercised/RSUs vested
(12.4
)
 
(4.0
)
Forfeited/expired
(1.7
)
 
(0.8
)
Options outstanding/Nonvested RSUs, July 1, 2012
34.5

 
7.5

Total unrecognized stock-based compensation expense, net of estimated forfeitures, as of July 1, 2012
$
44.1

 
$
104.4

Earnings Per Share
Earnings Per Share
Earnings Per Share
Calculation of net earnings per common share (“EPS”) — basic and diluted (in millions, except EPS):
 
Quarter Ended
 
Three Quarters Ended
 
July 1, 2012
 
July 3, 2011
 
July 1, 2012
 
July 3, 2011
Net earnings attributable to Starbucks
$
333.1

 
$
279.1

 
$
1,025.1

 
$
887.4

Weighted average common shares and common stock units outstanding (for basic calculation)
758.9

 
750.5

 
753.8

 
748.8

Dilutive effect of outstanding common stock options and RSUs
17.9

 
21.4

 
19.1

 
21.3

Weighted average common and common equivalent shares outstanding (for diluted calculation)
776.8

 
771.9

 
772.9

 
770.1

EPS — basic
$
0.44

 
$
0.37

 
$
1.36

 
$
1.19

EPS — diluted
$
0.43

 
$
0.36

 
$
1.33

 
$
1.15


Potential dilutive shares consist of the incremental common shares issuable upon the exercise of outstanding stock options (both vested and non-vested) and unvested RSUs, calculated using the treasury stock method. The calculation of dilutive shares outstanding excludes out-of-the-money stock options (i.e., such options’ exercise prices were greater than the average market price of our common shares for the period) because their inclusion would have been antidilutive. Out-of-the-money stock options totaled approximately 2 million as of July 3, 2011. There were no out-of-the-money stock options as of July 1, 2012.
Commitments And Contingencies
Commitments And Contingencies
Commitments and Contingencies
Legal Proceedings
In the first quarter of fiscal 2011, Starbucks notified Kraft Foods Global, Inc. (“Kraft”) that we were discontinuing our distribution arrangement with Kraft on March 1, 2011 due to material breaches by Kraft of its obligations under the Supply and License Agreement between the Company and Kraft, dated March 29, 2004 (the “Agreement”), which defined the main distribution arrangement between the parties. Through our arrangement with Kraft, Starbucks sold a selection of Starbucks and Seattle’s Best Coffee branded packaged coffees in grocery and warehouse club stores throughout the US, and to grocery stores in Canada, the UK and other European countries. Kraft managed the distribution, marketing, advertising and promotion of these products.
Kraft denies it has materially breached the Agreement. On November 29, 2010, Starbucks received a notice of arbitration from Kraft putting the commercial dispute between the parties into binding arbitration pursuant to the terms of the Agreement. In addition to denying it materially breached the Agreement, Kraft further alleges that if Starbucks wished to terminate the Agreement it must compensate Kraft as provided in the Agreement in an amount equal to the fair value of the Agreement, with an additional premium of up to 35% under certain circumstances.
On December 6, 2010, Kraft commenced a federal court action against Starbucks, entitled Kraft Foods Global, Inc. v. Starbucks Corporation, in the U.S. District Court for the Southern District of New York (the “District Court”) seeking injunctive relief to prevent Starbucks from terminating the distribution arrangement until the parties’ dispute is resolved through the arbitration proceeding. On January 28, 2011, the District Court denied Kraft’s request for injunctive relief. Kraft appealed the District Court’s decision to the Second Circuit Court of Appeals. On February 25, 2011, the Second Circuit Court of Appeals affirmed the District Court’s decision. As a result, Starbucks is in full control of our packaged coffee business as of March 1, 2011.
While Starbucks believes we have valid claims of material breach by Kraft under the Agreement that allowed us to terminate the Agreement and certain other relationships with Kraft without compensation to Kraft, there exists the possibility of material adverse outcomes to Starbucks in the arbitration or to resolve the matter. Although Kraft disclosed to the press and in federal court filings a $750 million offer Starbucks made to Kraft in August 2010 to avoid litigation and ensure a smooth transition of the business, the figure is not a proper basis upon which to estimate a possible outcome of the arbitration but was based upon facts and circumstances at the time. Kraft rejected the offer immediately and did not provide a counter-offer, effectively ending the discussions between the parties with regard to any payment. Moreover, the offer was made prior to our investigation of Kraft’s breaches and without consideration of Kraft’s continuing failure to comply with material terms of the agreements.
On April 2, 2012, Starbucks and Kraft exchanged expert reports regarding alleged damages on their affirmative claims. Starbucks claims damages of up to $62.9 million from the loss of sales resulting from Kraft’s failure to use commercially reasonable efforts to market Starbucks® coffee, plus attorney fees. Kraft’s expert opined that the fair market value of the Agreement was $1.9 billion. After applying a 35% premium and 9% interest, Kraft claims damages of up to $2.9 billion, plus attorney fees. The arbitration commenced on July 11, 2012 and is in progress. It is possible the arbitration may extend beyond the originally scheduled timeframe and, based on scheduling constraints, the timing of a decision may extend into fiscal 2013.
At this time, Starbucks believes an unfavorable outcome with respect to the arbitration is not probable, but as noted above is reasonably possible. As also noted above, Starbucks believes we have valid claims of material breach by Kraft under the Agreement that allowed us to terminate the Agreement without compensation to Kraft. In addition, Starbucks believes Kraft’s damage estimates are highly inflated and based upon faulty analysis. As a result, we cannot reasonably estimate the possible loss. Accordingly, no loss contingency has been recorded for this matter.
Starbucks is party to various other legal proceedings arising in the ordinary course of business, including certain employment litigation cases that have been certified as class or collective actions, but, except as noted above, is not currently a party to any legal proceeding that management believes could have a material adverse effect on our consolidated financial position, results of operations or cash flows.
Segment Reporting
Segment Reporting
Segment Reporting
Segment information is prepared on the same basis that our management reviews financial information for operational decision-making purposes. Beginning with the first quarter of fiscal 2012, we redefined our reportable operating segments to align with the three-region leadership and organizational structure of our retail business that took effect at the beginning of fiscal 2012.
The three-region structure includes: 1) Americas, inclusive of the US, Canada, and Latin America; 2) China / Asia Pacific (“CAP”); and 3) Europe, Middle East, and Africa, collectively referred to as the “EMEA” region. Our ceo, who is our chief operating decision maker (“CODM”) manages these businesses, evaluates financial results, and makes key operating decisions based on the new organizational structure. Accordingly, beginning with the first quarter of fiscal 2012, we revised our reportable operating segments from 1) US, 2) International, and 3) Global Consumer Products Group to the following four reportable segments: 1) Americas, 2) CAP, 3) EMEA, and 4) Global Consumer Products Group. In the second quarter of fiscal 2012, we renamed our Global Consumer Products Group segment “Channel Development.” Segment revenues as a percentage of total net revenues for the first three quarters of fiscal 2012 were as follows: Americas (75%), EMEA (9%), China / Asia Pacific (5%), and Channel Development (10%).
Concurrent with the change in reportable operating segments, we revised our prior period financial information to reflect comparable financial information for the new segment structure. Historical financial information presented herein reflects this change.
Americas
Americas operations sell coffee and other beverages, complementary food, whole bean coffees, and a focused selection of merchandise through company-operated stores and licensed stores. The Americas segment is our most mature business and has achieved significant scale.
Europe, Middle East, and Africa
EMEA operations sell coffee and other beverages, complementary food, whole bean coffees, and a focused selection of merchandise through company-operated stores and licensed stores. Certain markets within EMEA operations are in the early stages of development and require a more extensive support organization, relative to the current levels of revenue and operating income, than Americas.
China / Asia Pacific
China /Asia Pacific operations sell coffee and other beverages, complementary food, whole bean coffees, and a focused selection of merchandise through company-operated stores and licensed stores. Certain markets within China / Asia Pacific operations are in the early stages of development and require a more extensive support organization, relative to the current levels of revenue and operating income, than Americas.
Channel Development
Channel Development operations sell a selection of whole bean and ground coffees as well as a selection of premium Tazo® teas globally. Channel Development operations also produce and sell a variety of ready-to-drink beverages, Starbucks VIA® Ready Brew, Starbucks® coffee and Tazo® tea K-Cup® portion packs, and Starbucks® ice creams. The US foodservice business, which is included in the Channel Development segment, sells coffee and other related products to institutional foodservice companies.
Other
Other includes Seattle’s Best Coffee, Evolution Fresh, Digital Ventures, and unallocated corporate expenses that pertain to corporate administrative functions that support the operating segments but are not specifically attributable to or managed by any segment, and are not included in the reported financial results of the operating segments.

The tables below presents financial information for our reportable operating segments and Other for the quarter and three quarters ended July 1, 2012 and July 3, 2011, including the reclassifications discussed in Note 1 (in millions):
Quarter Ended
 
Americas
 
EMEA
 
China /
Asia Pacific
 
Channel
Development
 
Other
 
Total
July 1, 2012
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
$
2,471.2

 
$
282.0

 
$
181.8

 
$
316.4

 
$
52.2

 
$
3,303.6

Depreciation and amortization expenses
97.2

 
14.3

 
5.8

 
0.3

 
19.1

 
136.7

Income (loss) from equity investees
—

 
—

 
30.1

 
21.2

 
0.4

 
51.7

Operating income/(loss)
512.1

 
2.6

 
61.4

 
86.5

 
(171.0
)
 
491.6

 
 
 
 
 
 
 
 
 
 
 
 
July 3, 2011
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
$
2,275.9

 
$
257.9

 
$
138.6

 
$
218.4

 
$
41.4

 
$
2,932.2

Depreciation and amortization expenses
96.3

 
12.4

 
4.6

 
0.5

 
15.7

 
129.5

Income (loss) from equity investees
—

 
1.8

 
23.5

 
19.6

 
(0.6
)
 
44.3

Operating income/(loss)
450.9

 
4.9

 
44.9

 
69.3

 
(167.8
)
 
402.2

Three Quarters Ended
 
Americas
 
EMEA
 
China /
Asia Pacific
 
Channel
Development
 
Other
 
Total
July 1, 2012
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
$
7,424.4

 
$
857.5

 
$
523.3

 
$
973.7

 
$
156.5

 
$
9,935.4

Depreciation and amortization expenses
291.4

 
42.8

 
16.4

 
1.0

 
57.0

 
408.6

Income (loss) from equity investees
2.1

 
0.3

 
90.7

 
55.4

 
0.3

 
148.8

Operating income/(loss)
1,538.3

 
16.7

 
188.9

 
247.7

 
(513.7
)
 
1,477.9

 
 
 
 
 
 
 
 
 
 
 
 
July 3, 2011
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
$
6,768.8

 
$
756.7

 
$
391.1

 
$
618.3

 
$
133.8

 
$
8,668.7

Depreciation and amortization expenses
292.5

 
37.6

 
13.2

 
1.9

 
40.9

 
386.1

Income (loss) from equity investees
1.6

 
6.0

 
62.3

 
48.5

 
(1.5
)
 
116.9

Operating income/(loss)
1,398.1

 
37.8

 
134.6

 
207.5

 
(497.7
)
 
1,280.3


The following table reconciles the total of operating income in the table above to consolidated earnings before income taxes (in millions):
 
Quarter Ended
 
Three Quarters Ended
 
July 1, 2012
 
July 3, 2011
 
July 1, 2012
 
July 3, 2011
Operating income
$
491.6

 
$
402.2

 
$
1,477.9

 
$
1,280.3

Interest income and other, net
9.7

 
16.0

 
68.2

 
50.3

Interest expense
(8.9
)
 
(8.5
)
 
(26.2
)
 
(23.5
)
Earnings before income taxes
$
492.4

 
$
409.7

 
$
1,519.9

 
$
1,307.1

Subsequent Event
Subsequent Events
Subsequent Event
In the fourth quarter of fiscal 2012, we acquired Bay Bread, LLC and its La Boulange® bakery brand (collectively “La Boulange”), to elevate our core food offerings and build a premium, artisanal bakery brand. We acquired La Boulange for a purchase price of $100 million in cash. Because of the timing of when this acquisition closed, the initial accounting for this acquisition is still in process, including determining the fair value of the net assets acquired. La Boulange is a wholly-owned subsidiary of Starbucks Corporation.
Summary Of Significant Accounting Policies (Tables)
Condensed Consolidated Statement Of Earnings, Adjusted For Reclassification Of Certain Shared Service Expenses
In order to conform prior period classifications with the new alignment, the historical consolidated financial statements have been recast with the following adjustments to previously reported amounts:
 
 
Quarter Ended July 3, 2011
 
Three Quarters Ended July 3, 2011
 
As Filed
 
Reclass
 
As Adjusted
 
As Filed
 
Reclass
 
As Adjusted
Total net revenues
$
2,932.2

 
$
—

 
$
2,932.2

 
$
8,668.7

 
$
—

 
$
8,668.7

Cost of sales including occupancy costs
1,246.1

 
(8.6
)
 
1,237.5

 
3,626.9

 
(25.9
)
 
3,601.0

Store operating expenses
934.5

 
(17.4
)
 
917.1

 
2,725.4

 
(53.2
)
 
2,672.2

Other operating expenses
102.4

 
(2.4
)
 
100.0

 
296.2

 
(7.2
)
 
289.0

Depreciation and amortization expenses
129.5

 
—

 
129.5

 
386.1

 
—

 
386.1

General and administrative expenses
161.8

 
28.4

 
190.2

 
470.7

 
86.3

 
557.0

Total operating expenses
2,574.3

 
—

 
2,574.3

 
7,505.3

 
—

 
7,505.3

Income from equity investees
44.3

 
—

 
44.3

 
116.9

 
—

 
116.9

Operating income
$
402.2

 
$
—

 
$
402.2

 
$
1,280.3

 
$
—

 
$
1,280.3

Derivative Financial Instruments (Tables)
Pretax Effect Of Derivative Instruments On Earnings And Other Comprehensive Income

The following table presents the pretax effect of derivative contracts not designated as hedging instruments on earnings for the quarter and three quarters ended (in millions):
 
 
Foreign Currency
 
Dairy
 
Diesel Fuel
 
Jul 1, 2012
 
Jul 3, 2011
 
Jul 1, 2012
 
Jul 3, 2011
 
Jul 1, 2012
 
Jul 3, 2011
Gain/(Loss) recognized in earnings for the quarter ended
$
4.2

 
$
(0.3
)
 
$
1.2

 
$
2.2

 
$
(0.9
)
 
$
(0.2
)
Gain/(Loss) recognized in earnings for the three quarters ended
$
—

 
$
(3.9
)
 
$
2.0

 
$
5.0

 
$
0.7

 
$
1.1

The following tables present the pretax effect of derivative contracts designated as hedging instruments on earnings and other comprehensive income ("OCI") for the quarter and three quarters ended (in millions):
 
 
Foreign Currency
 
Coffee
Quarter Ended:
Jul 1, 2012
 
Jul 3, 2011
 
Jul 1, 2012
 
Jul 3, 2011
 
 
 
 
 
 
 
 
Cash Flow Hedges:
 
 
 
 
 
 
 
Gain/(Loss) recognized in earnings
$
(2.8
)
 
$
(4.7
)
 
$
(1.3
)
 
$
—

Gain/(Loss) recognized in OCI
$
(1.9
)
 
$
(5.4
)
 
$
(20.6
)
 
$
0.1

Net Investment Hedges:
 
 
 
 
 
 
 
Gain/(Loss) recognized in earnings
$
—

 
$
—

 
 
 
 
Gain/(Loss) recognized in OCI
$
(5.4
)
 
$
(5.2
)
 
 
 
 

 
Foreign Currency
 
Coffee
Three Quarters Ended:
Jul 1, 2012
 
Jul 3, 2011
 
Jul 1, 2012
 
Jul 3, 2011
 
 
 
 
 
 
 
 
Cash Flow Hedges:
 
 
 
 
 
 
 
Gain/(Loss) recognized in earnings
$
(8.6
)
 
$
(10.8
)
 
$
(1.3
)
 
$
—

Gain/(Loss) recognized in OCI
$
1.0

 
$
(13.4
)
 
$
(40.0
)
 
$
0.1

Net Investment Hedges:
 
 
 
 
 
 
 
Gain/(Loss) recognized in earnings
$
—

 
$
—

 
 
 
 
Gain/(Loss) recognized in OCI
$
4.9

 
$
(5.1
)
 
 
 
 
Fair Value Measurements (Tables)
Assets And Liabilities Measured At Fair Value On A Recurring Basis 
Assets and Liabilities Measured at Fair Value on a Recurring Basis (in millions):

 
 
 
Fair Value Measurements at Reporting Date Using
 
Balance at
July 1, 2012
 
Quoted Prices
in Active
Markets for 
Identical Assets
(Level 1)
 
Significant 
Other Observable 
Inputs
(Level 2)
 
Significant
Unobservable  Inputs
(Level 3)
Assets:
 
 
 
 
 
 
 
Short-term investments:
 
 
 
 
 
 
 
Available-for-sale securities
 
 
 
 
 
 
 
Agency obligations
$
100.0

 
$
—

 
$
100.0

 
$
—

Commercial paper
193.9

 
—

 
193.9

 
—

Corporate debt securities
80.8

 
—

 
80.8

 
—

Government treasury securities
499.6

 
499.6

 
—

 
—

Certificates of deposit
65.9

 
—

 
65.9

 
—

Total available-for-sale securities
940.2

 
499.6

 
440.6

 
—

Trading securities
56.1

 
56.1

 
—

 
—

Total short-term investments
996.3

 
555.7

 
440.6

 
—

Long-term investments:
 
 
 
 
 
 
 
Agency obligations
4.0

 
—

 
4.0

 
—

Corporate debt securities
73.6

 
—

 
73.6

 
—

State and local government obligations
28.4

 
—

 
—

 
28.4

Certificates of deposit
34.1

 
—

 
34.1

 
—

Total long-term investments
140.1

 
—

 
111.7

 
28.4

Total
$
1,136.4

 
$
555.7

 
$
552.3

 
$
28.4

Liabilities:
 
 
 
 
 
 
 
Short-term derivatives:
 
 
 
 
 
 
 
       Foreign Currency
$
8.4

 
$
—

 
$
8.4

 
$
—

       Coffee
25.7

 
—

 
25.7

 
—

Total short-term derivatives
34.1

 
—

 
34.1

 
—

Long-term derivatives:
 
 
 
 
 
 
 
       Foreign Currency
2.3

 
—

 
2.3

 
—

       Coffee
3.8

 
—

 
3.8

 
—

Total long-term derivatives
6.1

 
—

 
6.1

 
—

Total
$
40.2

 
$
—

 
$
40.2

 
$
—


 
 
 
Fair Value Measurements at Reporting Date Using
 
Balance at
October 2, 2011
 
Quoted Prices
in Active
Markets for 
Identical Assets
(Level 1)
 
Significant 
Other Observable 
Inputs
(Level 2)
 
Significant
Unobservable  Inputs
(Level 3)
Assets:
 
 
 
 
 
 
 
Short-term investments:
 
 
 
 
 
 
 
Available-for-sale securities
 
 
 
 
 
 
 
Agency obligations
$
20.0

 
$
—

 
$
20.0

 
$
—

Commercial paper
87.0

 
—

 
87.0

 
—

Corporate debt securities
78.0

 
—

 
78.0

 
—

Government treasury securities
606.0

 
606.0

 
—

 
—

Certificates of deposit
64.0

 
—

 
64.0

 
—

Total available-for-sale securities
855.0

 
606.0

 
249.0

 
—

Trading securities
47.6

 
47.6

 
—

 
—

Total short-term investments
902.6

 
653.6

 
249.0

 
—

Long-term investments:
 
 
 
 
 
 
 
Corporate debt securities
67.0

 
—

 
67.0

 
—

State and local government obligations
28.0

 
—

 
—

 
28.0

Certificates of deposit
12.0

 
—

 
12.0

 
—

Total long-term investments
107.0

 
—

 
79.0

 
28.0

Total
$
1,009.6

 
$
653.6

 
$
328.0

 
$
28.0

Liabilities:
 
 
 
 
 
 
 
Short-term derivatives:
 
 
 
 
 
 
 
       Foreign Currency
$
20.1

 
$
—

 
$
20.1

 
$
—

       Coffee
1.2

 
—

 
1.2

 
—

Total short-term derivatives
21.3

 
—

 
21.3

 
—

Long-term derivatives:
 
 
 
 
 
 
 
       Foreign Currency
9.9

 
—

 
9.9

 
—

Total long-term derivatives
9.9

 
—

 
9.9

 
—

Total
$
31.2

 
$
—

 
$
31.2

 
$
—

Asset Fair Market Value Adjustments Charged To Earnings 
During the quarter and three quarters ended July 1, 2012 and July 3, 2011, we recognized fair market value adjustments with a charge to earnings for these assets as follows (in millions):
 
 
Quarter Ended July 1, 2012
 
Three Quarters Ended July 1, 2012
 
Carrying
Value before
adjustment
 
Fair value
adjustment
 
Carrying
value after
adjustment
 
Carrying
Value before
adjustment
 
Fair value
adjustment
 
Carrying
value after
adjustment
Property, plant and equipment (1)
$
1.1

 
$
(0.7
)
 
$
0.4

 
$
4.4

 
$
(2.7
)
 
$
1.7


 
Quarter Ended July 3, 2011
 
Three Quarters Ended July 3, 2011
 
Carrying
Value before
adjustment
 
Fair value
adjustment
 
Carrying
value after
adjustment
 
Carrying
Value before
adjustment
 
Fair value
adjustment
 
Carrying
value after
adjustment
Property, plant and equipment (1)
$
1.7

 
$
(1.2
)
 
$
0.5

 
$
2.8

 
$
(2.1
)
 
$
0.7

Other assets (2)
$
1.6

 
$
(1.6
)
 
$
—

 
$
22.1

 
$
(22.1
)
 
$
—


 
(1)
These assets primarily consist of leasehold improvements in underperforming stores. The fair value was determined using a discounted cash flow model based on expected future store revenues and operating costs, using internal projections. The resulting impairment charge was included in store operating expenses.
(2)
The fair value was determined using a discounted cash flow model based on future expected revenues and operating costs, using internal projections. The resulting impairment charge was included in other operating expenses.
Inventories (Tables)
Components Of Inventories
 
Jul 1, 2012
 
Oct 2, 2011
 
Jul 3, 2011
Coffee:
 
 
 
 
 
Unroasted
$
749.1

 
$
431.3

 
$
423.3

Roasted
225.8

 
246.5

 
190.5

Other merchandise held for sale
133.4

 
150.8

 
116.0

Packaging and other supplies
140.9

 
137.2

 
126.9

Total
$
1,249.2

 
$
965.8

 
$
856.7

Supplemental Balance Sheet Information (Tables)
Property, Plant And Equipment, Net 
Property, Plant and Equipment, net
Jul 1, 2012
 
Oct 2, 2011
 
 
 
 
Land
$
44.8

 
$
44.8

Buildings
222.6

 
218.5

Leasehold improvements
3,808.7

 
3,617.7

Store equipment
1,185.1

 
1,101.8

Roasting equipment
308.6

 
295.1

Furniture, fixtures and other
799.8

 
757.8

Work in progress
210.3

 
127.4

Property, plant and equipment, gross
6,579.9

 
6,163.1

Less accumulated depreciation
(4,135.7
)
 
(3,808.1
)
Property, plant and equipment, net
$
2,444.2

 
$
2,355.0

Schedule Of Other Assets 
Other Assets
Jul 1, 2012
 
Oct 2, 2011
 
 
 
 
Other intangible assets
$
117.8

 
$
111.9

Other
286.2

 
297.7

Total other assets
$
404.0

 
$
409.6

Schedule Of Accrued Liabilities 
Accrued Liabilities
Jul 1, 2012
 
Oct 2, 2011
 
 
 
 
Accrued compensation and related costs
$
350.3

 
$
364.4

Accrued occupancy costs
125.7

 
148.3

Accrued taxes
99.7

 
109.2

Accrued dividend payable
129.1

 
126.6

Other
230.8

 
192.4

Total accrued liabilities
$
935.6

 
$
940.9

Schedule Of Other Long-Term Liabilities 
Other Long-Term Liabilities
Jul 1, 2012
 
Oct 2, 2011
 
 
 
 
Deferred rent
$
206.7

 
$
215.2

Unrecognized tax benefits
74.3

 
56.7

Asset retirement obligations
53.8

 
50.1

Other
18.3

 
25.8

Total other long-term liabilities
$
353.1

 
$
347.8

Goodwill (Tables)
Changes In Carrying Amount Of Goodwill By Reportable Operating Segment
Changes in the carrying amount of goodwill by reportable operating segment are as follows (in millions):
 
 
Americas
 
EMEA
 
China /
Asia Pacific
 
Channel
Development
 
Other
 
Total
Balance at October 2, 2011 (1)
 
 
 
 
 
 
 
 
 
 
 
Goodwill prior to impairment
$
162.9

 
$
63.0

 
$
74.8

 
$
23.8

 
$
5.7

 
$
330.2

Accumulated impairment charges
(8.6
)
 
—

 
—

 
—

 
—

 
(8.6
)
Goodwill
$
154.3

 
$
63.0

 
$
74.8

 
$
23.8

 
$
5.7

 
$
321.6

Acquisitions
11.8

 
—

 
—

 
—

 
5.8

 
17.6

Purchase price adjustment of previous acquisitions
—

 
—

 
—

 
—

 
—

 
—

Impairment
—

 
—

 
—

 
—

 
—

 
—

Other (2)
0.9

 
(3.6
)
 
0.2

 
—

 
—

 
(2.5
)
Balance at July 1, 2012
 
 
 
 
 
 
 
 
 
 
 
Goodwill prior to impairment
$
175.6

 
$
59.4

 
$
75.0

 
$
23.8

 
$
11.5

 
$
345.3

Accumulated impairment charges
(8.6
)
 
—

 
—

 
—

 
—

 
(8.6
)
Goodwill
$
167.0

 
$
59.4

 
$
75.0

 
$
23.8

 
$
11.5

 
$
336.7

 
(1)
In conjunction with the change in reportable operating segments, we reclassified goodwill by segment as of October 2, 2011.
(2)
Other is primarily comprised of changes in the goodwill balance as a result of foreign exchange fluctuations.
Equity (Tables)
Components Of Total Equity 
Changes in total equity (in millions):
 
Three Quarters Ended
 
Jul 1, 2012
 
Jul 3, 2011
Beginning balance of total equity
$
4,387.3

 
$
3,682.3

Net earnings including noncontrolling interest
1,025.7

 
889.9

Other comprehensive income / (loss)
(48.8
)
 
40.3

Comprehensive income
976.9

 
930.2

Stock-based compensation expense
116.3

 
109.8

Exercise of stock options
295.6

 
255.4

Sale of common stock
14.3

 
14.1

Repurchase of common stock
(15.7
)
 
(321.9
)
Cash dividends declared
(386.7
)
 
(292.9
)
Purchase of noncontrolling interest:
 
 
 
Included in additional paid-in capital
—

 
(28.0
)
Included in noncontrolling interests
—

 
(7.5
)
Ending balance of total equity
$
5,388.0

 
$
4,341.5

Components Of Accumulated Other Comprehensive Income, Net Of Tax 
Components of accumulated other comprehensive income, net of tax (in millions):
 
 
Jul 1, 2012
 
Oct 2, 2011
Net unrealized gains / (losses) on available-for-sale securities
$
(0.5
)
 
$
(0.5
)
Net unrealized gains / (losses) on hedging instruments
(71.1
)
 
(45.3
)
Translation adjustment
69.1

 
92.1

Accumulated other comprehensive income
$
(2.5
)
 
$
46.3

Share Repurchase Activity 
Share repurchase activity (in millions, except for average price data):
 
 
Three Quarters Ended
 
Jul 1, 2012
 
Jul 3, 2011
Number of shares acquired
0.4

 
9.2

Average price per share of acquired shares
$
36.49

 
$
35.12

Total cost of acquired shares
$
15.7

 
$
321.9

Employee Stock Plans (Tables)
Stock-Based Compensation Expense Recognized In Consolidated Statement Of Earnings 
Stock-based compensation expense recognized in the consolidated statements of earnings (in millions):
 
 
Quarter Ended
 
Three Quarters Ended
 
Jul 1, 2012
 
Jul 3, 2011
 
Jul 1, 2012
 
Jul 3, 2011
Options
$
11.2

 
$
14.3

 
$
35.4

 
$
46.8

Restricted Stock Units (“RSUs”)
27.6

 
22.7

 
79.4

 
61.4

Total stock-based compensation
$
38.8

 
$
37.0

 
$
114.8

 
$
108.2

Value Of Awards Granted And Exercised During The Period 
Value of awards granted and exercised during the period:
 
 
Quarter Ended
 
Three Quarters Ended
 
Jul 1, 2012
 
Jul 3, 2011
 
Jul 1, 2012
 
Jul 3, 2011
Estimated fair value per option granted
$
14.58

 
$
10.28

 
$
12.79

 
$
9.53

Weighted average option grant price
$
54.93

 
$
35.86

 
$
44.07

 
$
31.18

Weighted average price per option exercised
$
17.23

 
$
15.79

 
$
15.90

 
$
13.98

Weighted average RSU grant price
$
55.38

 
$
35.77

 
$
43.93

 
$
30.94

Stock Option And RSU Transactions 
Stock option and RSU transactions from October 2, 2011 through July 1, 2012 (in millions):
 
 
Stock Option
 
RSUs
Options outstanding/Nonvested RSUs, October 2, 2011
45.3

 
8.3

Granted
3.3

 
4.0

Options exercised/RSUs vested
(12.4
)
 
(4.0
)
Forfeited/expired
(1.7
)
 
(0.8
)
Options outstanding/Nonvested RSUs, July 1, 2012
34.5

 
7.5

Total unrecognized stock-based compensation expense, net of estimated forfeitures, as of July 1, 2012
$
44.1

 
$
104.4

Earnings Per Share (Tables)
Calculation Of Net Earnings Per Common Share ("EPS") - Basic And Diluted
Calculation of net earnings per common share (“EPS”) — basic and diluted (in millions, except EPS):
 
Quarter Ended
 
Three Quarters Ended
 
July 1, 2012
 
July 3, 2011
 
July 1, 2012
 
July 3, 2011
Net earnings attributable to Starbucks
$
333.1

 
$
279.1

 
$
1,025.1

 
$
887.4

Weighted average common shares and common stock units outstanding (for basic calculation)
758.9

 
750.5

 
753.8

 
748.8

Dilutive effect of outstanding common stock options and RSUs
17.9

 
21.4

 
19.1

 
21.3

Weighted average common and common equivalent shares outstanding (for diluted calculation)
776.8

 
771.9

 
772.9

 
770.1

EPS — basic
$
0.44

 
$
0.37

 
$
1.36

 
$
1.19

EPS — diluted
$
0.43

 
$
0.36

 
$
1.33

 
$
1.15

Segment Reporting (Tables)
Components Of Financial Information For Reportable Operating Segments And Other 
The tables below presents financial information for our reportable operating segments and Other for the quarter and three quarters ended July 1, 2012 and July 3, 2011, including the reclassifications discussed in Note 1 (in millions):
Quarter Ended
 
Americas
 
EMEA
 
China /
Asia Pacific
 
Channel
Development
 
Other
 
Total
July 1, 2012
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
$
2,471.2

 
$
282.0

 
$
181.8

 
$
316.4

 
$
52.2

 
$
3,303.6

Depreciation and amortization expenses
97.2

 
14.3

 
5.8

 
0.3

 
19.1

 
136.7

Income (loss) from equity investees
—

 
—

 
30.1

 
21.2

 
0.4

 
51.7

Operating income/(loss)
512.1

 
2.6

 
61.4

 
86.5

 
(171.0
)
 
491.6

 
 
 
 
 
 
 
 
 
 
 
 
July 3, 2011
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
$
2,275.9

 
$
257.9

 
$
138.6

 
$
218.4

 
$
41.4

 
$
2,932.2

Depreciation and amortization expenses
96.3

 
12.4

 
4.6

 
0.5

 
15.7

 
129.5

Income (loss) from equity investees
—

 
1.8

 
23.5

 
19.6

 
(0.6
)
 
44.3

Operating income/(loss)
450.9

 
4.9

 
44.9

 
69.3

 
(167.8
)
 
402.2

Three Quarters Ended
 
Americas
 
EMEA
 
China /
Asia Pacific
 
Channel
Development
 
Other
 
Total
July 1, 2012
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
$
7,424.4

 
$
857.5

 
$
523.3

 
$
973.7

 
$
156.5

 
$
9,935.4

Depreciation and amortization expenses
291.4

 
42.8

 
16.4

 
1.0

 
57.0

 
408.6

Income (loss) from equity investees
2.1

 
0.3

 
90.7

 
55.4

 
0.3

 
148.8

Operating income/(loss)
1,538.3

 
16.7

 
188.9

 
247.7

 
(513.7
)
 
1,477.9

 
 
 
 
 
 
 
 
 
 
 
 
July 3, 2011
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
$
6,768.8

 
$
756.7

 
$
391.1

 
$
618.3

 
$
133.8

 
$
8,668.7

Depreciation and amortization expenses
292.5

 
37.6

 
13.2

 
1.9

 
40.9

 
386.1

Income (loss) from equity investees
1.6

 
6.0

 
62.3

 
48.5

 
(1.5
)
 
116.9

Operating income/(loss)
1,398.1

 
37.8

 
134.6

 
207.5

 
(497.7
)
 
1,280.3

Reconciles The Total Of Operating Income To Consolidated Earnings Before Income Taxes 
The following table reconciles the total of operating income in the table above to consolidated earnings before income taxes (in millions):
 
Quarter Ended
 
Three Quarters Ended
 
July 1, 2012
 
July 3, 2011
 
July 1, 2012
 
July 3, 2011
Operating income
$
491.6

 
$
402.2

 
$
1,477.9

 
$
1,280.3

Interest income and other, net
9.7

 
16.0

 
68.2

 
50.3

Interest expense
(8.9
)
 
(8.5
)
 
(26.2
)
 
(23.5
)
Earnings before income taxes
$
492.4

 
$
409.7

 
$
1,519.9

 
$
1,307.1

Summary Of Significant Accounting Policies (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Jul. 1, 2012
Jul. 3, 2011
Jul. 1, 2012
Jul. 3, 2011
Total net revenues
$ 3,303.6 
$ 2,932.2 
$ 9,935.4 
$ 8,668.7 
Cost of sales including occupancy costs
1,446.1 
1,237.5 
4,354.1 
3,601.0 
Store operating expenses
976.0 
917.1 
2,928.3 
2,672.2 
Other operating expenses
105.9 
100.0 
317.9 
289.0 
Depreciation and amortization expenses
136.7 
129.5 
408.6 
386.1 
General and administrative expenses
199.0 
190.2 
597.4 
557.0 
Total operating expenses
2,863.7 
2,574.3 
8,606.3 
7,505.3 
Income from equity investees
51.7 
44.3 
148.8 
116.9 
Operating income
491.6 
402.2 
1,477.9 
1,280.3 
As Filed [Member]
 
 
 
 
Total net revenues
 
2,932.2 
 
8,668.7 
Cost of sales including occupancy costs
 
1,246.1 
 
3,626.9 
Store operating expenses
 
934.5 
 
2,725.4 
Other operating expenses
 
102.4 
 
296.2 
Depreciation and amortization expenses
 
129.5 
 
386.1 
General and administrative expenses
 
161.8 
 
470.7 
Total operating expenses
 
2,574.3 
 
7,505.3 
Income from equity investees
 
44.3 
 
116.9 
Operating income
 
402.2 
 
1,280.3 
Reclass [Member]
 
 
 
 
Total net revenues
 
0 
 
0 
Cost of sales including occupancy costs
 
(8.6)
 
(25.9)
Store operating expenses
 
(17.4)
 
(53.2)
Other operating expenses
 
(2.4)
 
(7.2)
Depreciation and amortization expenses
 
0 
 
0 
General and administrative expenses
 
28.4 
 
86.3 
Total operating expenses
 
0 
 
0 
Income from equity investees
 
0 
 
0 
Operating income
 
$ 0 
 
$ 0 
Acquisition (Details) (Evolution Fresh, Inc. [Member], USD $)
In Millions, unless otherwise specified
Nov. 10, 2011
Evolution Fresh, Inc. [Member]
 
Business Acquisition [Line Items]
 
Purchase price
$ 30 
Goodwill
$ 18 
Derivative Financial Instruments (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Jul. 1, 2012
Oct. 2, 2011
Foreign Exchange [Member]
 
 
Derivative [Line Items]
 
 
Notional amounts of outstanding derivative contracts, foreign exchange contracts
$ 384 
 
Coffee [Member]
 
 
Derivative [Line Items]
 
 
Notional amounts of outstanding derivative contracts
183 
 
Dairy [Member]
 
 
Derivative [Line Items]
 
 
Notional amounts of outstanding derivative contracts
41 
 
Diesel [Member]
 
 
Derivative [Line Items]
 
 
Notional amounts of outstanding derivative contracts
29 
 
Net Investment Hedging [Member] |
Foreign Exchange [Member]
 
 
Derivative [Line Items]
 
 
Outstanding contracts expire (in months)
32 months 
 
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Net Investment Hedges, Effect Net of Tax
31.2 
34.2 
Cash Flow Hedging [Member] |
Foreign Exchange [Member]
 
 
Derivative [Line Items]
 
 
Net derivative losses, net of taxes, included in accumulated other comprehensive income related to cash flow hedges
5.0 
11.1 
Amount of derivative losses pertaining to hedging instruments that will be dedesignated within twelve months, foreign currency
2.6 
 
Outstanding contracts expire (in months)
15 months 
 
Cash Flow Hedging [Member] |
Coffee [Member]
 
 
Derivative [Line Items]
 
 
Net derivative losses, net of taxes, included in accumulated other comprehensive income related to cash flow hedges
35.0 
 
Amount of derivative losses pertaining to hedging instruments that will be dedesignated within twelve months, coffee
$ 22.2 
 
Outstanding contracts expire (in months)
13 months 
 
Derivative Financial Instruments (Pretax Effect Of Derivative Instruments On Earnings And Other Comprehensive Income) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Jul. 1, 2012
Jul. 3, 2011
Jul. 1, 2012
Jul. 3, 2011
Foreign Exchange [Member] |
Not Designated as Hedging Instrument [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Gain/(Loss) recognized in earnings
$ 4.2 
$ (0.3)
$ 0 
$ (3.9)
Dairy Contracts [Member] |
Not Designated as Hedging Instrument [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Gain/(Loss) recognized in earnings
1.2 
2.2 
2.0 
5.0 
Diesel Contracts [Member] |
Not Designated as Hedging Instrument [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Gain/(Loss) recognized in earnings
(0.9)
(0.2)
0.7 
1.1 
Cash Flow Hedges [Member] |
Foreign Exchange [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Gain/(Loss) recognized in earnings
(2.8)
(4.7)
(8.6)
(10.8)
Gain/(Loss) recognized in OCI
(1.9)
(5.4)
1.0 
(13.4)
Cash Flow Hedges [Member] |
Coffee [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Gain/(Loss) recognized in earnings
(1.3)
0 
(1.3)
0 
Gain/(Loss) recognized in OCI
(20.6)
0.1 
(40.0)
0.1 
Net Investment Hedging [Member] |
Foreign Exchange [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Gain/(Loss) recognized in earnings
0 
0 
0 
0 
Gain/(Loss) recognized in OCI
$ (5.4)
$ (5.2)
$ 4.9 
$ (5.1)
Fair Value Measurements (Narrative) (Details) (6.25% Senior Notes [Member], USD $)
In Millions, unless otherwise specified
Jul. 1, 2012
Oct. 2, 2011
6.25% Senior Notes [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Face amount
$ 550 
 
Interest rate
6.25% 
 
Fair value
$ 667 
$ 648 
Fair Value Measurements (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) (USD $)
In Millions, unless otherwise specified
Jul. 1, 2012
Oct. 2, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term investments: Available-for-sale securities
$ 940.2 
$ 855.0 
Short-term investments: Trading securities
56.1 
47.6 
Total short-term investments
996.3 
902.6 
Long-term investments
140.1 
107.0 
Total
1,136.4 
1,009.6 
Short-term derivatives
34.1 
21.3 
Long-term derivatives
6.1 
9.9 
Total derivatives
40.2 
31.2 
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term investments: Available-for-sale securities
499.6 
606.0 
Short-term investments: Trading securities
56.1 
47.6 
Total short-term investments
555.7 
653.6 
Long-term investments
0 
0 
Total
555.7 
653.6 
Short-term derivatives
0 
0 
Long-term derivatives
0 
0 
Total derivatives
0 
0 
Significant Other Observable Inputs (Level 2) [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term investments: Available-for-sale securities
440.6 
249.0 
Short-term investments: Trading securities
0 
0 
Total short-term investments
440.6 
249.0 
Long-term investments
111.7 
79.0 
Total
552.3 
328.0 
Short-term derivatives
34.1 
21.3 
Long-term derivatives
6.1 
9.9 
Total derivatives
40.2 
31.2 
Significant Unobservable Inputs (Level 3) [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term investments: Available-for-sale securities
0 
0 
Short-term investments: Trading securities
0 
0 
Total short-term investments
0 
0 
Long-term investments
28.4 
28.0 
Total
28.4 
28.0 
Short-term derivatives
0 
0 
Long-term derivatives
0 
0 
Total derivatives
0 
0 
Foreign Exchange [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term derivatives
8.4 
20.1 
Long-term derivatives
2.3 
9.9 
Foreign Exchange [Member] |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term derivatives
0 
0 
Long-term derivatives
0 
0 
Foreign Exchange [Member] |
Significant Other Observable Inputs (Level 2) [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term derivatives
8.4 
20.1 
Long-term derivatives
2.3 
9.9 
Foreign Exchange [Member] |
Significant Unobservable Inputs (Level 3) [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term derivatives
0 
0 
Long-term derivatives
0 
0 
Coffee [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term derivatives
25.7 
1.2 
Long-term derivatives
3.8 
 
Coffee [Member] |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term derivatives
0 
0 
Long-term derivatives
0 
 
Coffee [Member] |
Significant Other Observable Inputs (Level 2) [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term derivatives
25.7 
1.2 
Long-term derivatives
3.8 
 
Coffee [Member] |
Significant Unobservable Inputs (Level 3) [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term derivatives
0 
0 
Long-term derivatives
0 
 
Agency Obligations [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term investments: Available-for-sale securities
100.0 
20.0 
Long-term investments
4.0 
 
Agency Obligations [Member] |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term investments: Available-for-sale securities
0 
0 
Long-term investments
0 
 
Agency Obligations [Member] |
Significant Other Observable Inputs (Level 2) [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term investments: Available-for-sale securities
100.0 
20.0 
Long-term investments
4.0 
 
Agency Obligations [Member] |
Significant Unobservable Inputs (Level 3) [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term investments: Available-for-sale securities
0 
0 
Long-term investments
0 
 
Commercial Paper [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term investments: Available-for-sale securities
193.9 
87.0 
Commercial Paper [Member] |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term investments: Available-for-sale securities
0 
0 
Commercial Paper [Member] |
Significant Other Observable Inputs (Level 2) [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term investments: Available-for-sale securities
193.9 
87.0 
Commercial Paper [Member] |
Significant Unobservable Inputs (Level 3) [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term investments: Available-for-sale securities
0 
0 
Corporate Debt Securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term investments: Available-for-sale securities
80.8 
78.0 
Long-term investments
73.6 
67.0 
Corporate Debt Securities [Member] |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term investments: Available-for-sale securities
0 
0 
Long-term investments
0 
0 
Corporate Debt Securities [Member] |
Significant Other Observable Inputs (Level 2) [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term investments: Available-for-sale securities
80.8 
78.0 
Long-term investments
73.6 
67.0 
Corporate Debt Securities [Member] |
Significant Unobservable Inputs (Level 3) [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term investments: Available-for-sale securities
0 
0 
Long-term investments
0 
0 
Government Treasury Securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term investments: Available-for-sale securities
499.6 
606.0 
Government Treasury Securities [Member] |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term investments: Available-for-sale securities
499.6 
606.0 
Government Treasury Securities [Member] |
Significant Other Observable Inputs (Level 2) [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term investments: Available-for-sale securities
0 
0 
Government Treasury Securities [Member] |
Significant Unobservable Inputs (Level 3) [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term investments: Available-for-sale securities
0 
0 
State And Local Government Obligations [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term investments
28.4 
28.0 
State And Local Government Obligations [Member] |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term investments
0 
0 
State And Local Government Obligations [Member] |
Significant Other Observable Inputs (Level 2) [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term investments
0 
0 
State And Local Government Obligations [Member] |
Significant Unobservable Inputs (Level 3) [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Long-term investments
28.4 
28.0 
Certificates Of Deposit [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term investments: Available-for-sale securities
65.9 
64.0 
Long-term investments
34.1 
12.0 
Certificates Of Deposit [Member] |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term investments: Available-for-sale securities
0 
0 
Long-term investments
0 
0 
Certificates Of Deposit [Member] |
Significant Other Observable Inputs (Level 2) [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term investments: Available-for-sale securities
65.9 
64.0 
Long-term investments
34.1 
12.0 
Certificates Of Deposit [Member] |
Significant Unobservable Inputs (Level 3) [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Short-term investments: Available-for-sale securities
0 
0 
Long-term investments
$ 0 
$ 0 
Fair Value Measurements (Asset Fair Market Value Adjustments Charged To Earnings) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Jul. 1, 2012
Quarter To Date [Member]
Property, Plant And Equipment [Member]
Jul. 3, 2011
Quarter To Date [Member]
Property, Plant And Equipment [Member]
Jul. 3, 2011
Quarter To Date [Member]
Other Assets [Member]
Jul. 1, 2012
Year To Date [Member]
Property, Plant And Equipment [Member]
Jul. 3, 2011
Year To Date [Member]
Property, Plant And Equipment [Member]
Jul. 3, 2011
Year To Date [Member]
Other Assets [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
 
 
 
 
Carrying Value before adjustment
$ 1.1 1
$ 1.7 1
$ 1.6 2
$ 4.4 1
$ 2.8 1
$ 22.1 2
Fair value adjustment
(0.7)1
(1.2)1
(1.6)2
(2.7)1
(2.1)1
(22.1)2
Carrying value after adjustment
$ 0.4 1
$ 0.5 1
$ 0 2
$ 1.7 1
$ 0.7 1
$ 0 2
Inventories (Details) (USD $)
In Millions, unless otherwise specified
Jul. 1, 2012
Oct. 2, 2011
Jul. 3, 2011
Unroasted coffee
$ 749.1 
$ 431.3 
$ 423.3 
Roasted coffee
225.8 
246.5 
190.5 
Other merchandise held for sale
133.4 
150.8 
116.0 
Packaging and other supplies
140.9 
137.2 
126.9 
Total
1,249.2 
965.8 
856.7 
Amount of coffee committed to be purchased under fixed-price contracts
463 
 
 
Amount of coffee committed to be purchased under price-to-be-fixed contracts
384 
 
 
Coffee [Member]
 
 
 
Notional amounts of outstanding derivative contracts
$ 183 
 
 
Supplemental Balance Sheet Information (Property, Plant And Equipment, Net) (Details) (USD $)
In Millions, unless otherwise specified
Jul. 1, 2012
Oct. 2, 2011
Balance Sheet Related Disclosures [Abstract]
 
 
Land
$ 44.8 
$ 44.8 
Buildings
222.6 
218.5 
Leasehold improvements
3,808.7 
3,617.7 
Store equipment
1,185.1 
1,101.8 
Roasting equipment
308.6 
295.1 
Furniture, fixtures and other
799.8 
757.8 
Work in progress
210.3 
127.4 
Property, plant and equipment, gross
6,579.9 
6,163.1 
Less accumulated depreciation
(4,135.7)
(3,808.1)
Property, plant and equipment, net
$ 2,444.2 
$ 2,355.0 
Supplemental Balance Sheet Information (Schedule Of Other Assets) (Details) (USD $)
In Millions, unless otherwise specified
Jul. 1, 2012
Oct. 2, 2011
Balance Sheet Related Disclosures [Abstract]
 
 
Other intangible assets
$ 117.8 
$ 111.9 
Other
286.2 
297.7 
Total other assets
$ 404.0 
$ 409.6 
Supplemental Balance Sheet Information (Schedule Of Accrued Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
Jul. 1, 2012
Oct. 2, 2011
Balance Sheet Related Disclosures [Abstract]
 
 
Accrued compensation and related costs
$ 350.3 
$ 364.4 
Accrued occupancy costs
125.7 
148.3 
Accrued taxes
99.7 
109.2 
Accrued dividend payable
129.1 
126.6 
Other
230.8 
192.4 
Total accrued liabilities
$ 935.6 
$ 940.9 
Supplemental Balance Sheet Information (Schedule Of Other Long-Term Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
Jul. 1, 2012
Oct. 2, 2011
Balance Sheet Related Disclosures [Abstract]
 
 
Deferred rent
$ 206.7 
$ 215.2 
Unrecognized tax benefits
74.3 
56.7 
Asset retirement obligations
53.8 
50.1 
Other
18.3 
25.8 
Total other long-term liabilities
$ 353.1 
$ 347.8 
Goodwill (Changes In Carrying Amount Of Goodwill By Reportable Operating Segment) (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Jul. 1, 2012
Goodwill [Line Items]
 
Goodwill prior to impairment, beginning balance
$ 330.2 1
Accumulated impairment charges, beginning balance
(8.6)1
Goodwill, beginning balance
321.6 1
Acquisitions
17.6 
Purchase price adjustment of previous acquisitions
0 
Impairment
0 
Other
(2.5)2
Goodwill prior to impairment, ending balance
345.3 
Accumulated impairment charges, ending balance
(8.6)
Goodwill, ending balance
336.7 
Americas [Member]
 
Goodwill [Line Items]
 
Goodwill prior to impairment, beginning balance
162.9 1
Accumulated impairment charges, beginning balance
(8.6)1
Goodwill, beginning balance
154.3 1
Acquisitions
11.8 
Purchase price adjustment of previous acquisitions
0 
Impairment
0 
Other
0.9 2
Goodwill prior to impairment, ending balance
175.6 
Accumulated impairment charges, ending balance
(8.6)
Goodwill, ending balance
167.0 
EMEA [Member]
 
Goodwill [Line Items]
 
Goodwill prior to impairment, beginning balance
63.0 1
Accumulated impairment charges, beginning balance
0 1
Goodwill, beginning balance
63.0 1
Acquisitions
0 
Purchase price adjustment of previous acquisitions
0 
Impairment
0 
Other
(3.6)2
Goodwill prior to impairment, ending balance
59.4 
Accumulated impairment charges, ending balance
0 
Goodwill, ending balance
59.4 
China And Asia Pacific [Member]
 
Goodwill [Line Items]
 
Goodwill prior to impairment, beginning balance
74.8 1
Accumulated impairment charges, beginning balance
0 1
Goodwill, beginning balance
74.8 1
Acquisitions
0 
Purchase price adjustment of previous acquisitions
0 
Impairment
0 
Other
0.2 2
Goodwill prior to impairment, ending balance
75.0 
Accumulated impairment charges, ending balance
0 
Goodwill, ending balance
75.0 
Channel Development [Member]
 
Goodwill [Line Items]
 
Goodwill prior to impairment, beginning balance
23.8 1
Accumulated impairment charges, beginning balance
0 1
Goodwill, beginning balance
23.8 1
Acquisitions
0 
Purchase price adjustment of previous acquisitions
0 
Impairment
0 
Other
0 2
Goodwill prior to impairment, ending balance
23.8 
Accumulated impairment charges, ending balance
0 
Goodwill, ending balance
23.8 
Other [Member]
 
Goodwill [Line Items]
 
Goodwill prior to impairment, beginning balance
5.7 1
Accumulated impairment charges, beginning balance
0 1
Goodwill, beginning balance
5.7 1
Acquisitions
5.8 
Purchase price adjustment of previous acquisitions
0 
Impairment
0 
Other
0 2
Goodwill prior to impairment, ending balance
11.5 
Accumulated impairment charges, ending balance
0 
Goodwill, ending balance
$ 11.5 
Equity (Narrative) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
9 Months Ended
Jul. 1, 2012
Oct. 2, 2011
Equity [Abstract]
 
 
Authorized shares of common stock
1,200.0 
1,200.0 
Par value of common stock
$ 0.001 
$ 0.001 
Authorized shares of preferred stock
7.5 
 
Outstanding shares of preferred stock
0 
 
Shares available for repurchase
24.0 
 
Cash dividend to shareholders
$ 0.17 
 
Dividends payable, payment date
Aug. 24, 2012 
 
Dividends payable, record date
Aug. 08, 2012 
 
Equity (Components Of Total Equity) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Jul. 1, 2012
Jul. 3, 2011
Jul. 1, 2012
Jul. 3, 2011
Equity [Abstract]
 
 
 
 
Beginning balance of total equity
 
 
$ 4,387.3 
$ 3,682.3 
Net earnings including noncontrolling interests
333.3 
279.8 
1,025.7 
889.9 
Other comprehensive income / (loss)
 
 
(48.8)
40.3 
Comprehensive income
 
 
976.9 
930.2 
Stock-based compensation expense
 
 
116.3 
109.8 
Exercise of stock options
 
 
295.6 
255.4 
Sale of common stock
 
 
14.3 
14.1 
Repurchase of common stock
 
 
(15.7)
(321.9)
Cash dividends declared
 
 
(386.7)
(292.9)
Purchase of noncontrolling interests (included in additional paid-in capital)
 
 
0 
(28.0)
Purchase of noncontrolling interests (included in noncontrolling interests)
 
 
0 
(7.5)
Ending balance of total equity
$ 5,388.0 
$ 4,341.5 
$ 5,388.0 
$ 4,341.5 
Equity (Components Of Accumulated Other Comprehensive Income, Net Of Tax) (Details) (USD $)
In Millions, unless otherwise specified
Jul. 1, 2012
Oct. 2, 2011
Equity [Abstract]
 
 
Net unrealized gains / (losses) on available-for-sale securities
$ (0.5)
$ (0.5)
Net unrealized gains / (losses) on hedging instruments
(71.1)
(45.3)
Translation adjustment
69.1 
92.1 
Accumulated other comprehensive income
$ (2.5)
$ 46.3 
Equity (Share Repurchase Activity) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
9 Months Ended
Jul. 1, 2012
Jul. 3, 2011
Equity [Abstract]
 
 
Number of shares acquired
0.4 
9.2 
Average price per share of acquired shares
$ 36.49 
$ 35.12 
Total cost of acquired shares
$ 15.7 
$ 321.9 
Employee Stock Plans (Narrative) (Details)
In Millions, unless otherwise specified
Jul. 1, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
Common stock available for issuance pursuant to future equity-based compensation awards and ESPP
32.4 
Employee Stock Plans (Stock-Based Compensation Expense Recognized In Consolidated Statement Of Earnings) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Jul. 1, 2012
Jul. 3, 2011
Jul. 1, 2012
Jul. 3, 2011
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
 
Stock-based compensation expense
$ 38.8 
$ 37.0 
$ 114.8 
$ 108.2 
Options [Member]
 
 
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
 
Stock-based compensation expense
11.2 
14.3 
35.4 
46.8 
Restricted Stock Units (RSUs) [Member]
 
 
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
 
Stock-based compensation expense
$ 27.6 
$ 22.7 
$ 79.4 
$ 61.4 
Employee Stock Plans (Value Of Awards Granted And Exercised During The Period) (Details)
3 Months Ended 9 Months Ended
Jul. 1, 2012
Jul. 3, 2011
Jul. 1, 2012
Jul. 3, 2011
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
 
 
 
Estimated fair value per option granted
$ 14.58 
$ 10.28 
$ 12.79 
$ 9.53 
Weighted average option grant price
$ 54.93 
$ 35.86 
$ 44.07 
$ 31.18 
Weighted average price per option exercised
$ 17.23 
$ 15.79 
$ 15.90 
$ 13.98 
Weighted average RSU grant price
$ 55.38 
$ 35.77 
$ 43.93 
$ 30.94 
Employee Stock Plans (Stock Option And RSU Transactions) (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Jul. 1, 2012
Stock Options [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Options outstanding, October 2, 2011, Stock Option
45.3 
Granted, Stock Option
3.3 
Options exercised, Stock Option
(12.4)
Forfeited/expired, Stock Option
(1.7)
Options outstanding, July 1, 2012, Stock Option
34.5 
Total unrecognized stock-based compensation expense, net of estimated forfeitures, as of July 1, 2012
$ 44.1 
Restricted Stock Units (RSUs) [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Nonvested RSUs, October 2, 2011, RSUs
8.3 
Granted, RSUs
4.0 
RSUs vested, RSUs
(4.0)
Forfeited/expired, RSUs
(0.8)
Nonvested RSUs, July 1, 2012, RSUs
7.5 
Total unrecognized stock-based compensation expense, net of estimated forfeitures, as of July 1, 2012
$ 104.4 
Earnings Per Share (Narrative) (Details) (Stock Options [Member])
In Millions, unless otherwise specified
9 Months Ended
Jul. 1, 2012
Jul. 3, 2011
Stock Options [Member]
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
Out-of-the-money options
0 
2.0 
Earnings Per Share (Calculation Of Net Earnings Per Common Share ("EPS") - Basic And Diluted) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Jul. 1, 2012
Jul. 3, 2011
Jul. 1, 2012
Jul. 3, 2011
Earnings Per Share [Abstract]
 
 
 
 
Net earnings attributable to Starbucks
$ 333.1 
$ 279.1 
$ 1,025.1 
$ 887.4 
Weighted average common shares and common stock units outstanding (for basic calculation)
758.9 
750.5 
753.8 
748.8 
Dilutive effect of outstanding common stock options and RSUs
17.9 
21.4 
19.1 
21.3 
Weighted average common and common equivalent shares outstanding (for diluted calculation)
776.8 
771.9 
772.9 
770.1 
EPS - basic
$ 0.44 
$ 0.37 
$ 1.36 
$ 1.19 
EPS - diluted
$ 0.43 
$ 0.36 
$ 1.33 
$ 1.15 
Commitments And Contingencies (Details) (USD $)
In Millions, unless otherwise specified
0 Months Ended 3 Months Ended
Nov. 29, 2010
Jul. 1, 2012
Aug. 31, 2010
Gain Loss Contingencies [Line Items]
 
 
 
Potential additional premium to be paid to the affiliate over the fair value of agreement in case of termination
35.00% 
 
 
Value of rejected offer
 
 
$ 750.0 
Asserted premium payment percentage damages sought
 
35.00% 
 
Interest penalty damages sought
 
9.00% 
 
Starbucks Claims [Member]
 
 
 
Gain Loss Contingencies [Line Items]
 
 
 
Counter claim damages sought value
 
62.9 
 
Kraft Claims [Member]
 
 
 
Gain Loss Contingencies [Line Items]
 
 
 
Damages sought
 
1,900.0 
 
Loss contingency damages sought value
 
$ 2,900.0 
 
Segment Reporting (Narrative) (Details)
9 Months Ended
Jul. 1, 2012
Segments
Segment Reporting Information [Line Items]
 
Number of Reportable Segments
4 
Sales Revenue, Segment [Member] |
Americas [Member]
 
Segment Reporting Information [Line Items]
 
Percentage of revenue from segment
75.00% 
Sales Revenue, Segment [Member] |
EMEA [Member]
 
Segment Reporting Information [Line Items]
 
Percentage of revenue from segment
9.00% 
Sales Revenue, Segment [Member] |
China And Asia Pacific [Member]
 
Segment Reporting Information [Line Items]
 
Percentage of revenue from segment
5.00% 
Sales Revenue, Segment [Member] |
Channel Development [Member]
 
Segment Reporting Information [Line Items]
 
Percentage of revenue from segment
10.00% 
Segment Reporting (Components Of Financial Information For Reportable Operating Segments And Other) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Jul. 1, 2012
Jul. 3, 2011
Jul. 1, 2012
Jul. 3, 2011
Segment Reporting Information [Line Items]
 
 
 
 
Total net revenues
$ 3,303.6 
$ 2,932.2 
$ 9,935.4 
$ 8,668.7 
Depreciation and amortization expenses
136.7 
129.5 
408.6 
386.1 
Income (loss) from equity investees
51.7 
44.3 
148.8 
116.9 
Operating income/(loss)
491.6 
402.2 
1,477.9 
1,280.3 
Americas [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total net revenues
2,471.2 
2,275.9 
7,424.4 
6,768.8 
Depreciation and amortization expenses
97.2 
96.3 
291.4 
292.5 
Income (loss) from equity investees
0 
0 
2.1 
1.6 
Operating income/(loss)
512.1 
450.9 
1,538.3 
1,398.1 
EMEA [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total net revenues
282.0 
257.9 
857.5 
756.7 
Depreciation and amortization expenses
14.3 
12.4 
42.8 
37.6 
Income (loss) from equity investees
0 
1.8 
0.3 
6.0 
Operating income/(loss)
2.6 
4.9 
16.7 
37.8 
China And Asia Pacific [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total net revenues
181.8 
138.6 
523.3 
391.1 
Depreciation and amortization expenses
5.8 
4.6 
16.4 
13.2 
Income (loss) from equity investees
30.1 
23.5 
90.7 
62.3 
Operating income/(loss)
61.4 
44.9 
188.9 
134.6 
Channel Development [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total net revenues
316.4 
218.4 
973.7 
618.3 
Depreciation and amortization expenses
0.3 
0.5 
1.0 
1.9 
Income (loss) from equity investees
21.2 
19.6 
55.4 
48.5 
Operating income/(loss)
86.5 
69.3 
247.7 
207.5 
Other [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total net revenues
52.2 
41.4 
156.5 
133.8 
Depreciation and amortization expenses
19.1 
15.7 
57.0 
40.9 
Income (loss) from equity investees
0.4 
(0.6)
0.3 
(1.5)
Operating income/(loss)
$ (171.0)
$ (167.8)
$ (513.7)
$ (497.7)
Segment Reporting (Reconciles The Total Of Operating Income To Consolidated Earnings Before Income Taxes) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Jul. 1, 2012
Jul. 3, 2011
Jul. 1, 2012
Jul. 3, 2011
Segment Reporting [Abstract]
 
 
 
 
Operating income
$ 491.6 
$ 402.2 
$ 1,477.9 
$ 1,280.3 
Interest income and other, net
9.7 
16.0 
68.2 
50.3 
Interest expense
(8.9)
(8.5)
(26.2)
(23.5)
Earnings before income taxes
$ 492.4 
$ 409.7 
$ 1,519.9 
$ 1,307.1 
Subsequent Event (Details) (La Boulange [Member], USD $)
In Millions, unless otherwise specified
Jul. 3, 2012
La Boulange [Member]
 
Subsequent Event [Line Items]
 
Purchase Price
$ 100