STARBUCKS CORP, 10-K filed on 11/14/2014
Annual Report
Document And Entity Information (USD $)
In Billions, except Share data in Millions, unless otherwise specified
12 Months Ended
Sep. 28, 2014
Nov. 7, 2014
Mar. 28, 2014
Document And Entity Information [Abstract]
 
 
 
Document Type
10-K 
 
 
Amendment Flag
false 
 
 
Document Period End Date
Sep. 28, 2014 
 
 
Document Fiscal Year Focus
2014 
 
 
Document Fiscal Period Focus
FY 
 
 
Entity Registrant Name
STARBUCKS CORP 
 
 
Entity Central Index Key
0000829224 
 
 
Current Fiscal Year End Date
--09-28 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Public Float
 
 
$ 54 
Entity Common Stock, Shares Outstanding
 
748.3 
 
Consolidated Statements of Earnings (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Sep. 28, 2014
Jun. 29, 2014
Mar. 30, 2014
Dec. 29, 2013
Sep. 29, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 30, 2012
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Net Revenues:
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
$ 4,180.8 
$ 4,153.7 
$ 3,873.8 
$ 4,239.6 
$ 3,788.8 1
$ 3,735.3 1
$ 3,549.6 1
$ 3,793.2 1
$ 16,447.8 
$ 14,866.8 1
$ 13,276.8 
Cost of sales including occupancy costs
 
 
 
 
1,633.7 
1,597.6 
1,530.4 
1,620.7 
6,858.8 
6,382.3 
5,813.3 
Store operating expenses
 
 
 
 
1,073.9 
1,084.1 
1,038.4 
1,089.5 
4,638.2 
4,286.1 
3,918.1 
Other operating expenses
 
 
 
 
101.1 
98.9 
105.8 
126.1 
457.3 
431.8 
407.2 
Depreciation and amortization expenses
 
 
 
 
166.1 
153.3 
153.1 
148.9 
709.6 
621.4 
550.3 
General and administrative expenses
 
 
 
 
226.1 
249.6 
230.3 
231.9 
991.3 
937.9 
801.2 
Litigation charge/(credit)
 
 
 
 
2,784.1 
0 
0 
0 
(20.2)
2,784.1 
0 
Total operating expenses
 
 
 
 
5,985.0 
3,183.5 
3,058.0 
3,217.1 
13,635.0 
15,443.6 
11,490.1 
Income from equity investees
 
 
 
 
81.0 
63.4 
52.5 
54.5 
268.3 
251.4 
210.7 
Operating income/(loss)
854.9 
768.5 
644.1 
813.5 
(2,115.2)2
615.2 
544.1 
630.6 
3,081.1 
(325.4)2
1,997.4 
Interest income and other, net
 
 
 
 
72.1 
3.5 
50.8 
(2.9)
142.7 
123.6 
94.4 
Interest expense
 
 
 
 
(9.1)
(6.3)
(6.1)
(6.6)
(64.1)
(28.1)
(32.7)
Earnings/(loss) before income taxes
 
 
 
 
(2,052.2)
612.4 
588.8 
621.1 
3,159.7 
(229.9)
2,059.1 
Income tax expense/(benefit)
 
 
 
 
(820.1)
194.6 
198.1 
188.7 
1,092.0 
(238.7)
674.4 
Net earnings/(loss) including noncontrolling interests
 
 
 
 
(1,232.1)
417.8 
390.7 
432.4 
2,067.7 
8.8 
1,384.7 
Net earnings/(loss) attributable to noncontrolling interests
 
 
 
 
(0.1)
0 
0.3 
0.2 
(0.4)
0.5 
0.9 
Net earnings/(loss) attributable to Starbucks
587.9 
512.6 
427.0 
540.7 
(1,232.0)2
417.8 
390.4 
432.2 
2,068.1 
8.3 2
1,383.8 
Earnings per share - basic
 
 
 
 
 
 
 
 
$ 2.75 
$ 0.01 
$ 1.83 
Earnings per share - diluted
$ 0.77 
$ 0.67 
$ 0.56 
$ 0.71 
$ (1.64)2
$ 0.55 
$ 0.51 
$ 0.57 
$ 2.71 
$ 0.01 2
$ 1.79 
Weighted average shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
Basic
 
 
 
 
 
 
 
 
753.1 
749.3 
754.4 
Diluted
 
 
 
 
 
 
 
 
763.1 
762.3 
773.0 
Company-operated stores [Member]
 
 
 
 
 
 
 
 
 
 
 
Net Revenues:
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
3,009.6 
2,986.3 
2,807.7 
2,989.6 
12,977.9 
11,793.2 
10,534.5 
Licensed stores [Member]
 
 
 
 
 
 
 
 
 
 
 
Net Revenues:
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
346.3 
342.0 
322.1 
350.2 
1,588.6 
1,360.5 
1,210.3 
CPG, foodservice and other [Member]
 
 
 
 
 
 
 
 
 
 
 
Net Revenues:
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
$ 432.9 
$ 407.0 
$ 419.8 
$ 453.4 
$ 1,881.3 
$ 1,713.1 
$ 1,532.0 
Consolidated Statements of Comprehensive Income (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Net earnings including noncontrolling interests
$ 2,067.7 
$ 8.8 
$ 1,384.7 
Other comprehensive income/(loss), net of tax:
 
 
 
Reclassification adjustment for net (gains)/losses realized in net earnings for cash flow hedges and available-for-sale securities, before tax
(1.5)
46.3 
14.8 
Reclassification adjustment for net (gains)/losses realized in net earnings for cash flow hedges and available-for-sale securities, tax expense/(benefit)
3.8 
(3.5)
(4.3)
Translation adjustment, before tax
(75.8)
(41.6)
6.1 
Translation adjustment, tax (expense)/benefit
(1.6)
0.3 
(3.3)
Other comprehensive income/(loss)
(41.7)
44.3 
(23.6)
Comprehensive income including noncontrolling interests
2,026.0 
53.1 
1,361.1 
Comprehensive income/(loss) attributable to noncontrolling interests
(0.4)
0.5 
0.9 
Comprehensive income attributable to Starbucks
2,026.4 
52.6 
1,360.2 
Available-for-sale Securities [Member]
 
 
 
Other comprehensive income/(loss), net of tax:
 
 
 
Unrealized holding gains/(losses) on available-for-sale securities, before tax
1.6 
(0.6)
0.7 
Unrealized holding gains/(losses) on available-for-sale securities, tax (expense)/benefit
(0.6)
0.2 
(0.3)
Cash Flow Hedging [Member]
 
 
 
Other comprehensive income/(loss), net of tax:
 
 
 
Unrealized gains/(losses) on derivatives, before tax
24.1 
47.1 
(42.2)
Unrealized gains/(losses) on derivatives, tax (expense)/benefit
(7.8)
(24.6)
4.3 
Net Investment Hedging [Member]
 
 
 
Other comprehensive income/(loss), net of tax:
 
 
 
Unrealized gains/(losses) on derivatives, before tax
25.5 
32.8 
1.0 
Unrealized gains/(losses) on derivatives, tax (expense)/benefit
$ (9.4)
$ (12.1)
$ (0.4)
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Sep. 28, 2014
Sep. 29, 2013
Current assets:
 
 
Cash and cash equivalents
$ 1,708.4 
$ 2,575.7 
Short-term investments
135.4 
658.1 
Accounts receivable, net
631.0 
561.4 
Inventories
1,090.9 
1,111.2 
Prepaid expenses and other current assets
285.6 
287.7 
Deferred income taxes, net
317.4 
277.3 
Total current assets
4,168.7 
5,471.4 
Long-term investments
318.4 
58.3 
Equity and cost investments
514.9 
496.5 
Property, plant and equipment, net
3,519.0 
3,200.5 
Deferred income taxes, net
903.3 
967.0 
Other assets
198.9 
185.3 
Other intangible assets
273.5 
274.8 
Goodwill
856.2 
862.9 
TOTAL ASSETS
10,752.9 
11,516.7 
Current liabilities:
 
 
Accounts payable
533.7 
491.7 
Accrued litigation charge
0 
2,784.1 
Accrued liabilities
1,514.4 
1,269.3 
Insurance reserves
196.1 
178.5 
Deferred revenue
794.5 
653.7 
Total current liabilities
3,038.7 
5,377.3 
Long-term debt
2,048.3 
1,299.4 
Other long-term liabilities
392.2 
357.7 
Total liabilities
5,479.2 
7,034.4 
Shareholders' equity:
 
 
Common stock ($0.001 par value) - authorized, 1,200.0 shares; issued and outstanding, 749.5 and 753.2 shares, respectively
0.7 
0.8 
Additional paid-in capital
39.4 
282.1 
Retained earnings
5,206.6 
4,130.3 
Accumulated other comprehensive income
25.3 
67.0 
Total shareholders' equity
5,272.0 
4,480.2 
Noncontrolling interest
1.7 
2.1 
Total equity
5,273.7 
4,482.3 
TOTAL LIABILITIES AND EQUITY
$ 10,752.9 
$ 11,516.7 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Per Share data, unless otherwise specified
Sep. 28, 2014
Sep. 29, 2013
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
749.5 
753.2 
Common stock, shares outstanding
749.5 
753.2 
Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
OPERATING ACTIVITIES:
 
 
 
Net earnings including noncontrolling interests
$ 2,067.7 
$ 8.8 
$ 1,384.7 
Adjustments to reconcile net earnings to net cash provided by operating activities:
 
 
 
Depreciation and amortization
748.4 
655.6 
580.6 
Litigation charge
0 
2,784.1 
0 
Deferred income taxes, net
10.2 
(1,045.9)
61.1 
Income earned from equity method investees
(182.7)
(171.8)
(136.0)
Distributions received from equity method investees
139.2 
115.6 
86.7 
Gain resulting from sale of equity in joint ventures and certain retail operations
(70.2)
(80.1)
0 
Stock-based compensation
183.2 
142.3 
153.6 
Excess tax benefit on share-based awards
(114.4)
(258.1)
(169.8)
Other
36.2 
23.0 
23.6 
Cash provided/(used) by changes in operating assets and liabilities:
 
 
 
Accounts receivable
(79.7)
(68.3)
(90.3)
Inventories
14.3 
152.5 
(273.3)
Accounts payable
60.4 
88.7 
(105.2)
Accrued litigation charge
(2,763.9)
0 
0 
Income taxes payable, net
309.8 
298.4 
201.6 
Accrued liabilities and insurance reserves
103.9 
47.3 
(8.1)
Deferred revenue
140.8 
139.9 
60.8 
Prepaid expenses, other current assets and other assets
4.6 
76.3 
(19.7)
Net cash provided by operating activities
607.8 
2,908.3 
1,750.3 
INVESTING ACTIVITIES:
 
 
 
Purchase of investments
(1,652.5)
(785.9)
(1,748.6)
Sales of investments
1,454.8 
60.2 
0 
Maturities and calls of investments
456.1 
980.0 
1,796.4 
Acquisitions, net of cash acquired
0 
(610.4)
(129.1)
Additions to property, plant and equipment
(1,160.9)
(1,151.2)
(856.2)
Proceeds from sale of equity in joint ventures and certain retail operations
103.9 
108.0 
0 
Other
(19.1)
(11.9)
(36.5)
Net cash used by investing activities
(817.7)
(1,411.2)
(974.0)
FINANCING ACTIVITIES:
 
 
 
Proceeds from issuance of long-term debt
748.5 
749.7 
0 
Principal payments on long-term debt
0 
(35.2)
0 
Payments on short-term borrowings
0 
0 
(30.8)
Proceeds from issuance of common stock
139.7 
247.2 
236.6 
Excess tax benefit on share-based awards
114.4 
258.1 
169.8 
Cash dividends paid
(783.1)
(628.9)
(513.0)
Repurchase of common stock
(758.6)
(588.1)
(549.1)
Minimum tax withholdings on share-based awards
(77.3)
(121.4)
(58.5)
Other
(6.9)
10.4 
(0.5)
Net cash used by financing activities
(623.3)
(108.2)
(745.5)
Effect of exchange rate changes on cash and cash equivalents
(34.1)
(1.8)
9.7 
Net (decrease)/increase in cash and cash equivalents
(867.3)
1,387.1 
40.5 
CASH AND CASH EQUIVALENTS:
 
 
 
Beginning of period
2,575.7 
1,188.6 
1,148.1 
End of period
1,708.4 
2,575.7 
1,188.6 
Cash paid during the period for:
 
 
 
Interest, net of capitalized interest
56.2 
34.4 
34.4 
Income taxes, net of refunds
$ 766.3 
$ 539.1 
$ 416.9 
Consolidated Statements of Equity (USD $)
In Millions
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income/(Loss) [Member]
Shareholders' Equity [Member]
Noncontrolling Interest [Member]
Balance, Amount at Oct. 02, 2011
$ 4,387.3 
$ 0.7 
$ 40.5 
$ 4,297.4 
$ 46.3 
$ 4,384.9 
$ 2.4 
Common stock, Shares at Oct. 02, 2011
 
744.8 
 
 
 
 
 
Net earnings
1,384.7 
0 
0 
1,383.8 
0 
1,383.8 
0.9 
Other comprehensive income/(loss)
(23.6)
 
 
 
(23.6)
(23.6)
0 
Stock-based compensation expense
155.2 
0 
155.2 
0 
0 
155.2 
0 
Exercise of stock options/vesting of RSUs, including tax benefit, Shares
 
16.5 
 
 
 
 
 
Exercise of stock options/vesting of RSUs, including tax benefit, Amount
326.1 
0 
326.1 
0 
0 
326.1 
0 
Sale of common stock, including tax benefit, Shares
 
0.3 
 
 
 
 
 
Sale of common stock, including tax benefit, Amount
19.5 
0 
19.5 
0 
0 
19.5 
0 
Repurchase of common stock, Shares
 
(12.3)
 
 
 
 
 
Repurchase of common stock, Amount
(593.2)
0 
(501.9)
(91.3)
0 
(593.2)
0 
Cash dividends declared
(543.7)
0 
0 
(543.7)
0 
(543.7)
0 
Noncontrolling interest resulting from acquisition
2.2 
0 
0 
0 
0 
0 
2.2 
Balance, Amount at Sep. 30, 2012
5,114.5 
0.7 
39.4 
5,046.2 
22.7 
5,109.0 
5.5 
Common stock, Shares at Sep. 30, 2012
 
749.3 
 
 
 
 
 
Net earnings
8.8 
0 
0 
8.3 
0 
8.3 
0.5 
Other comprehensive income/(loss)
44.3 
 
 
 
44.3 
44.3 
0 
Stock-based compensation expense
144.1 
0 
144.1 
0 
0 
144.1 
0 
Exercise of stock options/vesting of RSUs, including tax benefit, Shares
 
14.4 
 
 
 
 
 
Exercise of stock options/vesting of RSUs, including tax benefit, Amount
366.8 
0.1 
366.7 
0 
0 
366.8 
0 
Sale of common stock, including tax benefit, Shares
 
0.3 
 
 
 
 
 
Sale of common stock, including tax benefit, Amount
20.4 
0 
20.4 
0 
0 
20.4 
0 
Repurchase of common stock, Shares
 
(10.8)
 
 
 
 
 
Repurchase of common stock, Amount
(544.1)
0 
(288.5)
(255.6)
0 
(544.1)
0 
Cash dividends declared
(668.6)
0 
0 
(668.6)
0 
(668.6)
0 
Noncontrolling interest resulting from divestiture
(3.9)
0 
0 
0 
0 
0 
(3.9)
Balance, Amount at Sep. 29, 2013
4,482.3 
0.8 
282.1 
4,130.3 
67.0 
4,480.2 
2.1 
Common stock, Shares at Sep. 29, 2013
753.2 
753.2 
 
 
 
 
 
Net earnings
2,067.7 
0 
0 
2,068.1 
0 
2,068.1 
(0.4)
Other comprehensive income/(loss)
(41.7)
 
 
 
(41.7)
(41.7)
0 
Stock-based compensation expense
185.1 
0 
185.1 
0 
0 
185.1 
0 
Exercise of stock options/vesting of RSUs, including tax benefit, Shares
 
6.5 
 
 
 
 
 
Exercise of stock options/vesting of RSUs, including tax benefit, Amount
154.8 
0 
154.8 
0 
0 
154.8 
0 
Sale of common stock, including tax benefit, Shares
 
0.3 
 
 
 
 
 
Sale of common stock, including tax benefit, Amount
22.3 
0 
22.3 
0 
0 
22.3 
0 
Repurchase of common stock, Shares
 
(10.5)
 
 
 
 
 
Repurchase of common stock, Amount
(769.8)
(0.1)
(604.9)
(164.8)
0 
(769.8)
0 
Cash dividends declared
(827.0)
0 
0 
(827.0)
0 
(827.0)
0 
Balance, Amount at Sep. 28, 2014
$ 5,273.7 
$ 0.7 
$ 39.4 
$ 5,206.6 
$ 25.3 
$ 5,272.0 
$ 1.7 
Common stock, Shares at Sep. 28, 2014
749.5 
749.5 
 
 
 
 
 
Consolidated Statements of Equity (Parenthetical) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Statement of Stockholders' Equity [Abstract]
 
 
 
Tax benefit from exercise of stock options/vesting of RSUs
$ 114.8 
$ 259.9 
$ 167.3 
Tax benefit from sale of common stock
$ 0.2 
$ 0.2 
$ 0.2 
Cash dividends declared per share
$ 1.10 
$ 0.89 
$ 0.72 
Summary of Significant Accounting Policies
Summary Of Significant Accounting Policies
Summary of Significant Accounting Policies
Description of Business
We purchase and roast high-quality coffees that we sell, along with handcrafted coffee and tea beverages and a variety of fresh food items, through our company-operated stores. We also sell a variety of coffee and tea products and license our trademarks through other channels such as licensed stores, grocery and national foodservice accounts.
In this 10-K, Starbucks Corporation (together with its subsidiaries) is referred to as "Starbucks," the "Company," "we," "us" or "our."
We have four reportable operating segments: 1) Americas, which is inclusive of the US, Canada, and Latin America; 2) Europe, Middle East, and Africa ("EMEA"); 3) China/Asia Pacific ("CAP") and 4) Channel Development. We also have several non-reportable operating segments, including Teavana, Seattle's Best Coffee, Evolution Fresh, and our Digital Ventures business, which are combined and referred to as All Other Segments. Unallocated corporate operating expenses, which pertain primarily to corporate administrative functions that support the operating segments but are not specifically attributable to or managed by any segment, are presented as a reconciling item between total segment operating results and consolidated financial results.
Additional details on the nature of our business and our reportable operating segments are included in Note 16, Segment Reporting, of these Consolidated Financial Statements.
Principles of Consolidation
The consolidated financial statements reflect the financial position and operating results of Starbucks, including wholly-owned subsidiaries and investees that we control. Investments in entities that we do not control, but have the ability to exercise significant influence over operating and financial policies, are accounted for under the equity method. Investments in entities in which we do not have the ability to exercise significant influence are accounted for under the cost method. Intercompany transactions and balances have been eliminated.
Fiscal Year End
Our fiscal year ends on the Sunday closest to September 30. Fiscal years 2014, 2013 and 2012 included 52 weeks.
Estimates and Assumptions
Preparing financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Examples include, but are not limited to, estimates for inventory reserves, asset and goodwill impairments, assumptions underlying self-insurance reserves, income from unredeemed stored value cards, stock-based compensation forfeiture rates, future asset retirement obligations, and the potential outcome of future tax consequences of events that have been recognized in the financial statements. Actual results and outcomes may differ from these estimates and assumptions.
Cash and Cash Equivalents
We consider all highly liquid instruments with maturities of three months or less at the time of purchase, as well as credit card receivables for sales to customers in our company-operated stores that generally settle within two to five days, to be cash equivalents. We maintain cash and cash equivalent balances with financial institutions that exceed federally-insured limits. We have not experienced any losses related to these balances and we believe credit risk to be minimal.
Our cash management system provides for the funding of all major bank disbursement accounts on a daily basis as checks are presented for payment. Under this system, outstanding checks are in excess of the cash balances at certain banks, which creates book overdrafts. Book overdrafts are presented as a current liability in accounts payable on the consolidated balance sheets.
Investments
Available-for-sale Securities
Our short-term and long-term investments consist primarily of investment-grade debt securities, all of which are classified as available-for-sale. Available-for-sale securities are recorded at fair value, and unrealized holding gains and losses are recorded, net of tax, as a component of accumulated other comprehensive income. Available-for-sale securities with remaining maturities of less than one year and those identified by management at the time of purchase to be used to fund operations within one year are classified as short-term. All other available-for-sale securities, including all of our auction rate securities, are classified as long-term. We evaluate our available-for-sale securities for other than temporary impairment on a quarterly basis. Unrealized losses are charged against net earnings when a decline in fair value is determined to be other than temporary. We review several factors to determine whether a loss is other than temporary, such as the length and extent of the fair value decline, the financial condition and near-term prospects of the issuer, and whether we have the intent to sell or will more likely than not be required to sell before the securities' anticipated recovery, which may be at maturity. Realized gains and losses are accounted for using the specific identification method. Purchases and sales are recorded on a trade date basis.
Trading Securities
We also have a trading securities portfolio, which is comprised of marketable equity mutual funds and equity exchange-traded funds. Trading securities are recorded at fair value with unrealized holding gains and losses recorded in net interest income and other in the consolidated statements of earnings. Our trading securities portfolio approximates a portion of our liability under our Management Deferred Compensation Plan ("MDCP"), which is included in accrued compensation and related costs, within accrued liabilities on the consolidated balance sheets. Changes in our MDCP liability are recorded in general and administrative expenses in the consolidated statements of earnings.
Equity and Cost Method Investments
We evaluate our equity and cost method investments for impairment annually, and when facts and circumstances indicate that the carrying value of such investments may not be recoverable. We review several factors to determine whether the loss is other than temporary, such as the length and extent of the fair value decline, the financial condition and near-term prospects of the investee, and whether we have the intent to sell or will more likely than not be required to sell before the investment’s anticipated recovery. If a decline in fair value is determined to be other than temporary, an impairment charge is recorded in net earnings.
Fair Value
Fair value is the price we would receive to sell an asset or pay to transfer a liability (exit price) in an orderly transaction between market participants. For assets and liabilities recorded or disclosed at fair value on a recurring basis, we determine fair value based on the following:
Level 1: The carrying value of cash and cash equivalents approximates fair value because of the short-term nature of these instruments. For trading and US government treasury securities and commodity futures contracts, we use quoted prices in active markets for identical assets to determine fair value.
Level 2: When quoted prices in active markets for identical assets are not available, we determine the fair value of our available-for-sale securities and our over-the-counter forward contracts, collars, and swaps based upon factors such as the quoted market price of similar assets or a discounted cash flow model using readily observable market data, which may include interest rate curves and forward and spot prices for currencies and commodities, depending on the nature of the investment. The fair value of our long-term debt is estimated based on the quoted market prices for the same or similar issues or on the current rates offered to us for debt of the same remaining maturities.
Level 3: We determine the fair value of our auction rate securities using an internally-developed valuation model, using inputs that include interest rate curves, credit and liquidity spreads, and effective maturity.
Assets and liabilities recognized or disclosed at fair value 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. We determine the fair value of these items using Level 3 inputs, as described in the related sections below.
Derivative Instruments
We manage our exposure to various risks within the consolidated financial statements according to a market price risk management policy. Under this policy, we may engage in transactions involving various derivative instruments to hedge interest rates, commodity prices and foreign currency denominated revenue streams, inventory purchases, assets and liabilities, and investments in certain foreign operations. We record all derivatives on the consolidated balance sheets at fair value. We generally do not offset derivative assets and liabilities in our consolidated balance sheets or enter into derivative instruments with maturities longer than three years. We do not enter into derivative instruments for trading purposes.
We use various types of derivative instruments including forward contracts, commodity futures contracts, collars and swaps. Forward contracts and commodity futures contracts are agreements to buy or sell a quantity of a currency or commodity at a predetermined future date, and at a predetermined rate or price. A collar is a strategy that uses a combination of a purchased call option and a sold put option with equal premiums to hedge a portion of anticipated cash flows, or to limit the range of possible gains or losses on an underlying asset or liability to a specific range. A swap agreement is a contract between two parties to exchange cash flows based on specified underlying notional amounts, assets and/or indices.
Cash Flow Hedges
For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the derivative's gain or loss is reported as a component of other comprehensive income ("OCI") and recorded in accumulated other comprehensive income ("AOCI") on the consolidated balance sheets. The gain or loss is subsequently reclassified into net earnings when the hedged exposure affects net earnings.
To the extent that the change in the fair value of the contract corresponds to the change in the value of the anticipated transaction using forward rates on a monthly basis, the hedge is considered effective and is recognized as described above. The remaining change in fair value of the contract represents the ineffective portion, which is immediately recorded in net interest income and other in the consolidated statements of earnings.
Cash flow hedges related to anticipated transactions are designated and documented at the inception of each hedge by matching the terms of the contract to the underlying transaction. Cash flows from hedging transactions are classified in the same categories as the cash flows from the respective hedged items, which is discussed further at Note 3, Derivative Financial Instruments. Once established, cash flow hedges are generally not removed until maturity unless an anticipated transaction is no longer likely to occur. For dedesignated cash flow hedges or for transactions that are no longer likely to occur, the related accumulated derivative gains or losses are recognized in net interest income and other in the consolidated statements of earnings.
Net Investment Hedges
For derivative instruments that are designated and qualify as a net investment hedge, the effective portion of the derivative's gain or loss is reported as a component of OCI and recorded in AOCI. The gain or loss will be subsequently reclassified into net earnings when the hedged net investment is either sold or substantially liquidated.
To the extent that the change in the fair value of the forward contract corresponds to the change in value of the anticipated transactions using spot rates on a monthly basis, the hedge is considered effective and is recognized as described above. The remaining change in fair value of the forward contract represents the ineffective portion, which is immediately recognized in net interest income and other in the consolidated statements of earnings.
Derivatives Not Designated As Hedging Instruments
We also enter into certain foreign currency forward contracts, commodity futures contracts, collars and swaps that are not designated as hedging instruments for accounting purposes. The change in the fair value of these contracts is immediately recognized in net interest income and other in the consolidated statements of earnings.
Normal Purchase Normal Sale
We enter into fixed-price and price-to-be-fixed green coffee purchase commitments, which are described further at Note 5, Inventories. For both fixed-price and price-to-be-fixed purchase commitments, we expect to take delivery of and to utilize the coffee in a reasonable period of time and in the conduct of normal business. Accordingly, these purchase commitments qualify as normal purchases and are not recorded at fair value on our balance sheets.
Receivables, net of Allowance for Doubtful Accounts
Our receivables are mainly comprised of receivables for product and equipment sales to and royalties from our licensees, as well as receivables from our CPG and foodservice business customers. Our allowance for doubtful accounts is calculated based on historical experience, customer credit risk and application of the specific identification method. As of September 28, 2014 and September 29, 2013, the allowance for doubtful accounts was $6.7 million and $5.7 million, respectively.
Inventories
Inventories are stated at the lower of cost (primarily moving average cost) or market. We record inventory reserves for obsolete and slow-moving inventory and for estimated shrinkage between physical inventory counts. Inventory reserves are based on inventory obsolescence trends, historical experience and application of the specific identification method. As of September 28, 2014 and September 29, 2013, inventory reserves were $31.2 million and $52.0 million, respectively.
Property, Plant and Equipment
Property, plant and equipment, which includes assets under capital leases, are carried at cost less accumulated depreciation. Cost includes all direct costs necessary to acquire and prepare assets for use, including internal labor and overhead in some cases. Depreciation is computed using the straight-line method over estimated useful lives of the assets, generally ranging from 2 to 15 years for equipment and 30 to 40 years for buildings. Leasehold improvements are amortized over the shorter of their estimated useful lives or the related lease life, generally 10 years. For leases with renewal periods at our option, we generally use the original lease term, excluding renewal option periods, to determine estimated useful lives. If failure to exercise a renewal option imposes an economic penalty to us, we may determine at the inception of the lease that renewal is reasonably assured and include the renewal option period in the determination of the appropriate estimated useful lives.
The portion of depreciation expense related to production and distribution facilities is included in cost of sales including occupancy costs in the consolidated statements of earnings. The costs of repairs and maintenance are expensed when incurred, while expenditures for refurbishments and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. When assets are disposed of, whether through retirement or sale, the net gain or loss is recognized in net earnings. Long-lived assets to be disposed of are reported at the lower of their carrying amount or fair value less estimated costs to sell.
We evaluate property, plant and equipment for impairment when facts and circumstances indicate that the carrying values of such assets may not be recoverable. When evaluating for impairment, we first compare the carrying value of the asset to the asset’s estimated future undiscounted cash flows. If the estimated undiscounted future cash flows are less than the carrying value of the asset, we determine if we have an impairment loss by comparing the carrying value of the asset to the asset's estimated fair value and recognize an impairment charge when the asset’s carrying value exceeds its estimated fair value. The fair value of the asset is estimated using a discounted cash flow model based on forecasted future revenues and operating costs, using internal projections. Property, plant and equipment assets are grouped at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For company-operated store assets, the impairment test is performed at the individual store asset group level.
We recognized net disposition charges of $14.7 million, $17.4 million, and $16.5 million and net impairment charges of $19.0 million, $12.7 million, and $15.2 million in fiscal 2014, 2013, and 2012, respectively. The nature of the underlying asset that is impaired or disposed of will determine the operating expense line on which the related impact is recorded in the consolidated statements of earnings. For assets within our retail operations, net impairment and disposition charges are recorded in store operating expenses. For all other assets, these charges are recorded in cost of sales including occupancy costs, other operating expenses, or general and administrative expenses.
Goodwill
We evaluate goodwill for impairment annually during our third fiscal quarter, or more frequently if an event occurs or circumstances change, such as material deterioration in performance or a significant number of store closures, that would indicate that impairment may exist. When evaluating goodwill for impairment, we may first perform a qualitative assessment to determine whether it is more likely than not that a reporting unit is impaired. If we do not perform a qualitative assessment, or if we determine that it is not more likely than not that the fair value of the reporting unit exceeds its carrying amount, we calculate the estimated fair value of the reporting unit. Fair value is the price a willing buyer would pay for the reporting unit and is typically calculated using a discounted cash flow model. If the carrying amount of the reporting unit exceeds the estimated fair value, an impairment charge is recorded to reduce the carrying value to the estimated fair value.
As part of our ongoing operations, we may close certain stores within a reporting unit containing goodwill due to underperformance of the store or inability to renew our lease, among other reasons. We may abandon certain assets associated with a closed store, including leasehold improvements and other non-transferable assets. When a portion of a reporting unit that constitutes a business is to be disposed of, goodwill associated with the business is included in the carrying amount of the business in determining any loss on disposal. Our evaluation of whether the portion of a reporting unit being disposed of constitutes a business occurs on the date of abandonment. Although an operating store meets the accounting definition of a business prior to abandonment, it does not constitute a business on the closure date because the remaining assets on that date do not constitute an integrated set of assets that are capable of being managed for the purpose of providing a return to investors. As a result, when closing individual stores, we do not include goodwill in the calculation of any loss on disposal of the related assets. As noted above, if store closures are indicative of potential impairment of goodwill at the reporting unit level, we perform an evaluation of our reporting unit goodwill when such closures occur. There were no material goodwill impairment charges recorded during fiscal 2014, 2013, and 2012.
Other Intangible Assets
Other intangible assets consist primarily of trade names and trademarks with indefinite lives, which are tested for impairment annually during the third fiscal quarter, or more frequently if an event occurs or circumstances change that would indicate that impairment may exist. When evaluating other intangible assets for impairment, we may first perform a qualitative assessment to determine whether it is more likely than not that an intangible asset group is impaired. If we do not perform the qualitative assessment, or if we determine that it is not more likely than not that the fair value of the intangible asset group exceeds its carrying amount, we calculate the estimated fair value of the intangible asset group. Fair value is the price a willing buyer would pay for the reporting unit and is typically calculated using an income approach, such as a relief-from-royalty model. If the carrying amount of the intangible asset group exceeds the estimated fair value, an impairment charge is recorded to reduce the carrying value to the estimated fair value. In addition, we continuously monitor and may revise our intangible asset useful lives if and when facts and circumstances change.
Definite-lived intangible assets, which mainly consist of acquired rights, trade secrets, contract-based patents and copyrights, are amortized over their estimated useful lives, and are tested for impairment using a similar methodology to our property, plant and equipment, as described above.
There were no other intangible asset impairment charges recorded during fiscal 2014, 2013, and 2012.
Insurance Reserves
We use a combination of insurance and self-insurance mechanisms, including a wholly-owned captive insurance entity and participation in a reinsurance treaty, to provide for the potential liabilities for certain risks, including workers’ compensation, healthcare benefits, general liability, property insurance, and director and officers’ liability insurance. Liabilities associated with the risks that are retained by us are not discounted and are estimated, in part, by considering historical claims experience, demographics, exposure and severity factors, and other actuarial assumptions.
Revenue Recognition
Consolidated revenues are presented net of intercompany eliminations for wholly-owned subsidiaries and investees controlled by us and for product sales to and royalty and other fees from licensees accounted for under the equity method. Additionally, consolidated revenues are recognized net of any discounts, returns, allowances and sales incentives, including coupon redemptions and rebates.
Company-operated Store Revenues
Company-operated store revenues are recognized when payment is tendered at the point of sale. Company-operated store revenues are reported net of sales, use or other transaction taxes that are collected from customers and remitted to taxing authorities.
Licensed Store Revenues
Licensed store revenues consist of product and equipment sales to licensees, as well as royalties and other fees paid by licensees to use the Starbucks brand. Sales of coffee, tea and related products are generally recognized upon shipment to licensees, depending on contract terms. Shipping charges billed to licensees are also recognized as revenue, and the related shipping costs are included in cost of sales including occupancy costs in the consolidated statements of earnings.
Initial nonrefundable development fees for licensed stores are recognized upon substantial performance of services for new market business development activities, such as initial business, real estate and store development planning, as well as providing operational materials and functional training courses for opening new licensed retail markets. Additional store licensing fees are recognized when new licensed stores are opened. Royalty revenues based upon a percentage of reported sales, and other continuing fees, such as marketing and service fees, are recognized on a monthly basis when earned.
CPG, Foodservice and Other Revenues
CPG, foodservice and other revenues primarily include sales of packaged coffee and tea as well as a variety of ready-to-drink beverages and single-serve coffee and tea products to grocery, warehouse clubs and specialty retail stores, sales to our national foodservice accounts, and revenues from sales of products to and license fee revenues from manufacturers that produce and market Starbucks and Seattle’s Best Coffee branded products through licensing agreements. Sales of coffee, tea, ready-to-drink beverages and related products to grocery and warehouse club stores are generally recognized when received by the customer or distributor, depending on contract terms. Revenues are recorded net of sales discounts given to customers for trade promotions and other incentives and for sales return allowances, which are determined based on historical patterns.
Revenues from sales of products to manufacturers that produce and market Starbucks and Seattle’s Best Coffee branded products through licensing agreements are generally recognized when the product is received by the manufacturer or distributor. License fee revenues from manufacturers are based on a percentage of sales and are recognized on a monthly basis when earned. National foodservice account revenues are recognized, when the product is received by the customer or distributor.
Sales to customers through CPG channels and national foodservice accounts, including sales to national distributors, are recognized net of certain fees paid to the customer. We characterize these fees as a reduction of revenue unless we are able to identify a sufficiently separable benefit from the customer's purchase of our products such that we could have entered into an exchange transaction with a party other than the customer in order to receive such benefit, and we can reasonably estimate the fair value of such benefit.
Stored Value Cards
Revenues from our stored value cards, primarily Starbucks Cards, are recognized when redeemed or when we recognize breakage income, which occurs when the likelihood of redemption, based on historical experience, is deemed to be remote. Outstanding customer balances are included in deferred revenue on the consolidated balance sheets. There are no expiration dates on our stored value cards, and we do not charge any service fees that cause a decrement to customer balances. While we will continue to honor all stored value cards presented for payment, management may determine the likelihood of redemption to be remote for certain cards due to long periods of inactivity. In these circumstances, if management also determines there is no requirement for remitting balances to government agencies under unclaimed property laws, card balances may then be recognized as breakage income in net interest income and other in the consolidated statements of earnings. In fiscal 2014, 2013, and 2012, we recognized breakage income of $38.3 million, $33.0 million, and $65.8 million, respectively.
Customers in the US, Canada, and certain other countries who register their Starbucks Card are automatically enrolled in the My Starbucks Rewards® loyalty program and earn reward points ("Stars") with each purchase at participating Starbucks®, Teavana®, Evolution Fresh™ and La Boulange® stores, as well as on certain packaged coffee products purchased in select Starbucks® stores, at StarbucksStore.com, and through CPG channels. Reward program members receive various benefits depending on factors such as the number of Stars earned in a 12-month period. The value of Stars earned by our program members towards free product is included in deferred revenue and recorded as a reduction in revenue at the time the Stars are earned, based on the value of Stars that are projected to be redeemed.
Marketing & Advertising
Our annual marketing expenses include many components, one of which is advertising costs. We expense most advertising costs as they are incurred, except for certain production costs that are expensed the first time the advertising takes place.
Marketing expenses totaled $315.5 million, $306.8 million and $277.9 million in fiscal 2014, 2013, and 2012, respectively. Included in these costs were advertising expenses, which totaled $198.9 million, $205.8 million and $182.4 million in fiscal 2014, 2013, and 2012, respectively.
Store Preopening Expenses
Costs incurred in connection with the start-up and promotion of new store openings are expensed as incurred.
Operating Leases
We lease retail stores, roasting, distribution and warehouse facilities, and office space for corporate administrative purposes under operating leases. Most lease agreements contain tenant improvement allowances, rent holidays, lease premiums, rent escalation clauses and/or contingent rent provisions. We recognize amortization of lease incentives, premiums and minimum rent expenses on a straight-line basis beginning on the date of initial possession, which is generally when we enter the space and begin to make improvements in preparation for intended use.
For tenant improvement allowances and rent holidays, we record a deferred rent liability within accrued liabilities, or other long-term liabilities, on the consolidated balance sheets and amortize the deferred rent over the terms of the leases as reductions to rent expense in the consolidated statements of earnings.
For premiums paid upfront to enter a lease agreement, we record a prepaid rent asset in prepaid expenses and other current assets on the consolidated balance sheets and amortize the deferred rent over the terms of the leases as additional rent expense in the consolidated statements of earnings.
For scheduled rent escalation clauses during the lease terms or for rental payments commencing at a date other than the date of initial possession, we record minimum rent expense on a straight-line basis over the terms of the leases in the consolidated statements of earnings.
Certain leases provide for contingent rent, which is determined as a percentage of gross sales in excess of specified levels. We record a contingent rent liability on the consolidated balance sheets and the corresponding rent expense when specified levels have been achieved or when we determine that achieving the specified levels during the fiscal year is probable.
When ceasing operations of company-operated stores under operating leases, in cases where the lease contract specifies a termination fee due to the landlord, we record such expense at the time written notice is given to the landlord. In cases where terms, including termination fees, are yet to be negotiated with the landlord, we will record the expense upon signing of an agreement with the landlord. In cases where the landlord does not allow us to prematurely exit the lease, but allows for subleasing, we estimate the fair value of any sublease income that can be generated from the location and recognize an expense equal to the present value of the remaining lease payments to the landlord less any projected sublease income at the cease-use date.
Asset Retirement Obligations
We recognize a liability for the fair value of required asset retirement obligations ("ARO") when such obligations are incurred. Our AROs are primarily associated with leasehold improvements, which, at the end of a lease, we are contractually obligated to remove in order to comply with the lease agreement. At the inception of a lease with such conditions, we record an ARO liability and a corresponding capital asset in an amount equal to the estimated fair value of the obligation. We estimate the liability using a number of assumptions, including store closing costs, cost inflation rates and discount rates, and accrete it to its projected future value over time. The capitalized asset is depreciated using the same depreciation convention as leasehold improvement assets. Upon satisfaction of the ARO conditions, any difference between the recorded ARO liability and the actual retirement costs incurred is recognized as a gain or loss in cost of sales including occupancy costs in the consolidated statements of earnings. As of September 28, 2014 and September 29, 2013, our net ARO assets included in property, plant and equipment were $4.1 million and $3.8 million, respectively, and our net ARO liabilities included in other long-term liabilities were $28.4 million and $27.7 million, respectively.
Stock-based Compensation
We maintain several equity incentive plans under which we may grant non-qualified stock options, incentive stock options, restricted stock, restricted stock units ("RSUs") or stock appreciation rights to employees, non-employee directors and consultants. We also have an employee stock purchase plan ("ESPP"). RSUs issued by us are equivalent to nonvested shares under the applicable accounting guidance. We record stock-based compensation expense based on the fair value of stock awards at the grant date and recognize the expense over the related service period following a graded vesting expense schedule. Expense for performance-based RSUs is recognized when it is probable the performance goal will be achieved. Performance goals are determined by the Board of Directors and may include measures such as earnings per share, operating income and return on invested capital. The fair value of each stock option granted is estimated on the grant date using the Black-Scholes-Merton option valuation model. The assumptions used to calculate the fair value of options granted are evaluated and revised, as necessary, to reflect market conditions and our historical experience. Options granted are valued using the multiple option valuation approach, and the resulting expense is recognized over the requisite service period for each separately vesting portion of the award. Compensation expense is recognized only for those options expected to vest, with forfeitures estimated at the date of grant based on our historical experience and future expectations. The fair value of RSUs is based on the closing price of Starbucks common stock on the award date, less the present value of expected dividends not received during the vesting period.
Foreign Currency Translation
Our international operations generally use their local currency as their functional currency. Assets and liabilities are translated at exchange rates in effect at the balance sheet date. Income and expense accounts are translated at the average monthly exchange rates during the year. Resulting translation adjustments are reported as a component of OCI and recorded in AOCI on the consolidated balance sheets.
Income Taxes
We compute income taxes using the asset and liability method, under which deferred income taxes are recognized based on the differences between the financial statement carrying amounts and the respective tax basis of our assets and liabilities. Deferred tax assets and liabilities are measured using current enacted tax rates expected to apply to taxable income in the years in which we expect the temporary differences to reverse. The effect of a change in tax rates on deferred taxes is recognized in income in the period that includes the enactment date.
We routinely evaluate the likelihood of realizing the benefit of our deferred tax assets and may record a valuation allowance if, based on all available evidence, we determine that some portion of the tax benefit will not be realized. In evaluating our ability to recover our deferred tax assets within the jurisdiction from which they arise, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.
In addition, our income tax returns are periodically audited by domestic and foreign tax authorities. These audits include review of our tax filing positions, including the timing and amount of deductions taken and the allocation of income between tax jurisdictions. We evaluate our exposures associated with our various tax filing positions and recognize a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the relevant taxing authorities, including resolutions of any related appeals or litigation processes, based on the technical merits of our position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. For uncertain tax positions that do not meet this threshold, we record a related liability. We adjust our unrecognized tax benefit liability and income tax expense in the period in which the uncertain tax position is effectively settled, the statute of limitations expires for the relevant taxing authority to examine the tax position, or when new information becomes available.
Starbucks recognizes interest and penalties related to income tax matters in income tax expense in the consolidated statements of earnings. Accrued interest and penalties are included within the related tax liability on the consolidated balance sheets.
Earnings per Share
Basic earnings per share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed based on the weighted average number of shares of common stock and the effect of dilutive potential common shares outstanding during the period, calculated using the treasury stock method. Dilutive potential common shares include outstanding stock options and RSUs. Performance-based RSUs are considered dilutive when the related performance criterion has been met.
Common Stock Share Repurchases
We may repurchase shares of Starbucks common stock under a program authorized by our Board of Directors, including pursuant to a contract, instruction or written plan meeting the requirements of Rule 10b5-1(c)(1) of the Securities Exchange Act of 1934. Under applicable Washington State law, shares repurchased are retired and not displayed separately as treasury stock on the financial statements. Instead, the par value of repurchased shares is deducted from common stock and the excess repurchase price over par value is deducted from additional paid-in capital and from retained earnings, once additional paid-in capital is depleted.
Recent Accounting Pronouncements
In May 2014, the Financial Accounting Standards Board ("FASB") issued guidance outlining a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers that supersedes most current revenue recognition guidance. This guidance requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, this guidance expands related disclosure requirements. The guidance will become effective for us at the beginning of our first quarter of fiscal 2018 and will require full or modified retrospective application. We are currently evaluating the impact this guidance will have on our financial statements as well as the expected adoption method.
In April 2014, the FASB issued guidance that changes the criteria for reporting discontinued operations. To qualify as a discontinued operation under the amended guidance, a component or group of components of an entity that has been disposed of or is classified as held for sale must represent a strategic shift that has or will have a major effect on the entity's operations and financial results. This guidance also expands related disclosure requirements. The guidance will become effective for us at the beginning of our first quarter of fiscal 2016. We do not expect the adoption of this guidance will have a material impact on our financial statements.
In July 2013, the FASB issued guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This guidance requires the unrecognized tax benefit to be presented in the financial statements as a reduction to a deferred tax asset. When a deferred tax asset is not available, or the asset is not intended to be used for this purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and not netted with a deferred tax asset. The guidance will become effective for us at the beginning of our first quarter of fiscal 2015. We do not expect the adoption of this guidance will have a material impact on our financial statements.
In March 2013, the FASB issued guidance on a parent's accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. This guidance requires a parent to release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The guidance will become effective for us at the beginning of our first quarter of fiscal 2015. We do not expect the adoption of this guidance will have a material impact on our financial statements.
In February 2013, the FASB issued guidance that adds additional disclosure requirements for items reclassified out of accumulated other comprehensive income. This guidance requires the disclosure of significant amounts reclassified from each component of accumulated other comprehensive income and the income statement line items affected by the reclassification. The guidance became effective for us at the beginning of our first quarter of fiscal 2014 and the additional disclosures are provided in Note 11, Equity, of these consolidated financial statements.
In January 2013, the FASB issued guidance clarifying the scope of disclosure requirements for offsetting assets and liabilities. The amended guidance limits the scope of balance sheet offsetting disclosures to derivatives, repurchase agreements, and securities lending transactions to the extent that they are offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement. The guidance became effective for us at the beginning of our first quarter of fiscal 2014 and did not have a material impact on our financial statements.
Correction of an Immaterial Error
Effective at the beginning of fiscal 2014, we reclassified certain fees related to our US and Seattle's Best Coffee foodservice operations in our Channel Development segment and All Other Segments, respectively, from other operating expenses to foodservice revenues included in CPG, foodservice and other net revenues in our consolidated statements of earnings. This reclassification results from a correction of an error in our prior period financial statements which we have determined to be immaterial. In order to align prior period classifications with the current period presentation, the historical consolidated financial statements have been corrected, resulting in reclassifications of $25.4 million and $22.7 million for fiscal years 2013 and 2012, respectively. The consolidated statements of earnings as corrected are presented below (in millions):
 
Fiscal 2013
 
Fiscal 2012
 
Q1
 
Q2
 
Q3
 
Q4
 
Full Year
 
Full Year
Net revenues:
 
 
 
 
 
 
 
 
 
 
 
Company-operated stores
$
2,989.6

 
$
2,807.7

 
$
2,986.3

 
$
3,009.6

 
$
11,793.2

 
$
10,534.5

Licensed stores
350.2

 
322.1

 
342.0

 
346.3

 
1,360.5

 
1,210.3

CPG, foodservice and other
453.4

 
419.8

 
407.0

 
432.9

 
1,713.1

 
1,532.0

Total net revenues
3,793.2

 
3,549.6

 
3,735.3

 
3,788.8

 
14,866.8

 
13,276.8

Cost of sales including occupancy costs
1,620.7

 
1,530.4

 
1,597.6

 
1,633.7

 
6,382.3

 
5,813.3

Store operating expenses
1,089.5

 
1,038.4

 
1,084.1

 
1,073.9

 
4,286.1

 
3,918.1

Other operating expenses
126.1

 
105.8

 
98.9

 
101.1

 
431.8

 
407.2

Depreciation and amortization expenses
148.9

 
153.1

 
153.3

 
166.1

 
621.4

 
550.3

General and administrative expenses
231.9

 
230.3

 
249.6

 
226.1

 
937.9

 
801.2

Litigation charge
—

 
—

 
—

 
2,784.1

 
2,784.1

 
—

Total operating expenses
3,217.1

 
3,058.0

 
3,183.5

 
5,985.0

 
15,443.6

 
11,490.1

Income from equity investees
54.5

 
52.5

 
63.4

 
81.0

 
251.4

 
210.7

Operating income/(loss)
630.6

 
544.1

 
615.2

 
(2,115.2
)
 
(325.4
)
 
1,997.4

Interest income and other, net
(2.9
)
 
50.8

 
3.5

 
72.1

 
123.6

 
94.4

Interest expense
(6.6
)
 
(6.1
)
 
(6.3
)
 
(9.1
)
 
(28.1
)
 
(32.7
)
Earnings/(loss) before income taxes
621.1

 
588.8

 
612.4

 
(2,052.2
)
 
(229.9
)
 
2,059.1

Income tax expense/(benefit)
188.7

 
198.1

 
194.6

 
(820.1
)
 
(238.7
)
 
674.4

Net earnings/(loss) including noncontrolling interests
432.4

 
390.7

 
417.8

 
(1,232.1
)
 
8.8

 
1,384.7

Net earnings/(loss) attributable to noncontrolling interests
0.2

 
0.3

 
—

 
(0.1
)
 
0.5

 
0.9

Net earnings/(loss) attributable to Starbucks
$
432.2

 
$
390.4

 
$
417.8

 
$
(1,232.0
)
 
$
8.3

 
$
1,383.8


There was no impact on operating income or net earnings as a result of the error correction, nor any impact on our consolidated statements of comprehensive income, consolidated balance sheets or consolidated statements of cash flows. Additional disclosure regarding this change as it relates to our segment results is included at Note 16, Segment Reporting.
Acquisitions and Divestitures
Acquisitions and Divestitures
Acquisitions and Divestitures
Fiscal 2014
During the fourth quarter of fiscal 2014, we sold our Australian company-operated retail store assets and operations to the Withers Group, converting these operations to a fully licensed market, for a total of $15.9 million. This transaction resulted in a pre-tax gain of $2.4 million, which was included in net interest income and other in the consolidated statements of earnings. On an after-tax basis, this transaction resulted in a loss that was not material to our financial statements.
Fiscal 2013
During the fourth quarter of fiscal 2013, we sold our 82% interest in Starbucks Coffee Chile S.A. to our joint venture partner Alsea, S.A.B. de C.V., converting this market to a 100% licensed market, for a total purchase price of $68.6 million, which includes final working capital adjustments. This transaction resulted in a gain of $45.9 million, which was included in net interest income and other in the consolidated statements of earnings.
In the third quarter of fiscal 2013, we acquired 100% ownership of a coffee farm in Costa Rica for $8.1 million in cash. The fair value of the net assets acquired on the acquisition date primarily comprised property, plant and equipment.
On December 31, 2012, we acquired 100% of the outstanding shares of Teavana Holdings, Inc. ("Teavana"), a specialty retailer of premium loose-leaf teas, authentic artisanal teawares and other tea-related merchandise, to elevate our tea offerings as well as expand our domestic and global tea footprint. We acquired Teavana for $615.8 million in cash. Of the total cash paid, $12.2 million was excluded from the purchase price allocation below as it represented contingent consideration receivable, all of which has been settled. At closing, we also repaid $35.2 million for long term debt outstanding on Teavana's balance sheet, which was recognized separately from the business combination. The following table summarizes the allocation of the purchase price to the fair values of the assets acquired and liabilities assumed on the closing date (in millions):
 
 
Fair Value at
 Dec 31, 2012
Cash and cash equivalents
 
$
47.0

Inventories
 
21.3

Property, plant and equipment
 
59.7

Intangible assets
 
120.8

Goodwill
 
467.5

Other current and noncurrent assets
 
19.8

Current liabilities
 
(36.0
)
Long-term deferred tax liability
 
(54.3
)
Long-term debt
 
(35.2
)
Other long-term liabilities
 
(7.0
)
Total purchase price
 
$
603.6


The assets acquired and liabilities assumed are reported within All Other Segments. Other current and noncurrent assets acquired primarily include prepaid expenses, trade receivables, and deferred tax assets. In addition, we assumed various current liabilities primarily consisting of accounts payable, accrued payroll related liabilities and other accrued operating expenses. The intangible assets acquired as part of the transaction include the Teavana trade name, tea blends and non-compete agreements. The Teavana trade name was valued at $105.5 million and determined to have an indefinite life, based on our expectation that the brand will be used indefinitely and has no contractual limitations. The intangible asset related to the tea blends was valued at $13.0 million and will be amortized on a straight-line basis over a period of 10 years, and the intangible asset related to the non-compete agreements was valued at $2.3 million and will be amortized on a straight-line basis over a period of 3 years. The $467.5 million of goodwill represents the intangible assets that do not qualify for separate recognition, primarily including Teavana's established global store presence in high traffic mall locations and other high-sales-volume retail venues, Teavana's global customer base, and Teavana's "Heaven of tea" retail experience in which store employees engage and educate customers about the ritual and enjoyment of tea. The goodwill was allocated to All Other Segments and is not deductible for income tax purposes.
Fiscal 2012
On July 3, 2012, we acquired 100% ownership interest in 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 approximately $100 million in cash. The following table summarizes the allocation of the purchase price to the fair values of the assets acquired and liabilities assumed on the closing date (in millions):
 
 
Fair Value at
 July 3, 2012
Property, plant and equipment
 
$
18.1

Intangible assets
 
24.3

Goodwill
 
58.7

Other current and noncurrent assets
 
5.1

Current liabilities
 
(6.4
)
Total cash paid
 
$
99.8



The assets acquired and liabilities assumed are included in our Americas operating segment. Other current assets acquired primarily include cash, trade receivables, and inventory. In addition, we assumed various current liabilities primarily consisting of accounts payable and accrued payroll related liabilities. The intangible assets acquired as part of the transaction include the La Boulange trade name and proprietary recipes and processes. The La Boulange trade name was valued at $9.7 million and determined to have an indefinite life while the intangible asset relating to the proprietary recipes and processes was valued at $14.6 million and will be amortized over a period of 10 years. The $58.7 million of goodwill is deductible for income tax purposes and was allocated to our Americas operating segment.
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 reported within All Other Segments.
Derivative Financial Instruments
Derivative Financial Instruments
Derivative Financial Instruments
Interest Rates
Depending on market conditions, we enter into interest rate swap agreements to hedge the variability in cash flows due to changes in the benchmark interest rate related to anticipated debt issuances. These agreements are cash settled at the time of the pricing of the related debt. The effective portion of the derivative's gain or loss is recorded in accumulated other comprehensive income ("AOCI") and is subsequently reclassified to interest expense over the life of the related debt.
Foreign Currency
To reduce cash flow volatility from foreign currency fluctuations, 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. The effective portion of the derivative's gain or loss is recorded in AOCI and is subsequently reclassified to revenue or cost of sales when the hedged exposure affects net earnings.
We also enter into forward contracts to hedge the foreign currency exposure of our net investment in certain foreign operations. The effective portion of the derivative's gain or loss is recorded in AOCI and will be subsequently reclassified to net earnings when the hedged net investment is either sold or substantially liquidated.
To mitigate the translation risk of certain balance sheet items, we enter into foreign currency swap contracts that are not designated as hedging instruments. Gains and losses from these derivatives are largely offset by the financial impact of translating foreign currency denominated payables and receivables; both are recorded in net interest income and other.
Commodities
Depending on market conditions, we enter into coffee futures contracts and collars (the combination of a purchased call option and a sold put option) to hedge a portion of anticipated cash flows under our price-to-be-fixed green coffee contracts, which are described further in Note 5, Inventories. The effective portion of the derivative's gain or loss is recorded in AOCI and is subsequently reclassified to cost of sales when the hedged exposure affects net earnings.
To mitigate the price uncertainty of a portion of our future purchases of dairy products and diesel fuel, we enter into dairy and diesel fuel swap contracts, as well as dairy futures and collars that are not designated as hedging instruments. Gains and losses from these derivatives are recorded in net interest income and other. Gains and losses from dairy swaps, futures and collars largely offset price fluctuations on our dairy purchases, which are included in cost of sales. Gains and losses from diesel fuel swaps largely offset the financial impact of diesel fuel fluctuations on our shipping costs, which are included in operating expenses.
Gains and losses on derivative contracts designated as hedging instruments included in AOCI and expected to be reclassified into earnings within 12 months, net of tax (in millions):
 
Net Gains/(Losses)
Included in AOCI
 
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months
 
Contract Remaining Maturity
(Months)
 
Sep 28,
2014
 
Sep 29,
2013
 
 
Cash Flow Hedges:
 
 
 
 
 
 
 
Interest rates
$
36.4

 
$
41.4

 
$
3.3

 
 
Foreign currency
10.6

 
(0.3
)
 
7.0

 
34
Coffee
(0.7
)
 
(12.2
)
 
(1.3
)
 
14
Net Investment Hedges:
 
 
 
 
 
 
 
Foreign currency
3.2

 
(12.9
)
 
1.8

 
36

Pretax gains and losses on derivative contracts designated as hedging instruments recognized in other comprehensive income ("OCI") and reclassifications from AOCI to earnings (in millions):
 
Year Ended
 
Gains/(Losses) Recognized in
OCI Before Reclassifications
 
Gains/(Losses) Reclassified from AOCI to Earnings
 
Sep 28,
2014
 
Sep 29,
2013
 
Sep 28,
2014
 
Sep 29,
2013
Cash Flow Hedges:
 
 
 
 
 
 
 
Interest rates
$
0.5

 
$
66.2

 
$
5.0

 
$
0.5

Foreign currency
24.0

 
7.4

 
8.0

 
3.5

Coffee
(0.4
)
 
(26.5
)
 
(13.1
)
 
(49.4
)
Net Investment Hedges:
 
 
 
 
 
 
 
Foreign currency
25.5

 
32.8

 
—

 
—



Pretax gains and losses on derivative contracts not designated as hedging instruments recognized in earnings (in millions):
 
Gains/(Losses) Recognized in Earnings
 
Sep 28, 2014
 
Sep 29, 2013
Foreign currency
$
1.7

 
$
(1.8
)
Coffee
—

 
(2.1
)
Dairy
12.6

 
(4.7
)
Diesel fuel
(1.0
)
 
0.3


Notional amounts of outstanding derivative contracts (in millions):
 
Sep 28, 2014
 
Sep 29, 2013
Foreign currency
$
542

 
$
452

Coffee
45

 
—

Dairy
24

 
38

Diesel fuel
17

 
17


The fair values of our derivative assets and liabilities are included in Note 4, Fair Value Measurements, and additional disclosures related to cash flow hedge gains and losses included in accumulated other comprehensive income, as well as subsequent reclassifications to earnings, are included in Note 11, Equity.
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
Sep 28, 2014
 
Quoted Prices
in Active
Markets for 
Identical Assets
(Level 1)
 
Significant 
Other Observable 
Inputs
(Level 2)
 
Significant
Unobservable  Inputs
(Level 3)
Assets:
 
 
 
 
 
 
 
Cash and cash equivalents
$
1,708.4

 
$
1,708.4

 
$
—

 
$
—

Short-term investments:
 
 
 
 
 
 
 
Available-for-sale securities
 
 
 
 
 
 
 
Corporate debt securities
4.9

 
—

 
4.9

 
—

Foreign government obligations
33.7

 
—

 
33.7

 
—

US government treasury securities
10.9

 
10.9

 
—

 
—

State and local government obligations
12.7

 
—

 
12.7

 
—

Certificates of deposit
1.0

 
—

 
1.0

 
—

Total available-for-sale securities
63.2

 
10.9

 
52.3

 
—

Trading securities
72.2

 
72.2

 
—

 
—

Total short-term investments
135.4

 
83.1

 
52.3

 
—

Prepaid expenses and other current assets:
 
 
 
 
 
 
 
Derivative assets
28.7

 
0.9

 
27.8

 
—

Long-term investments:
 
 
 
 
 
 
 
Available-for-sale securities
 
 
 
 
 
 
 
Agency obligations
8.9

 
—

 
8.9

 
—

Corporate debt securities
130.9

 
—

 
130.9

 
—

Auction rate securities
13.8

 
—

 
—

 
13.8

Foreign government obligations
17.4

 
—

 
17.4

 
—

US government treasury securities
94.8

 
94.8

 
—

 
—

State and local government obligations
6.7

 
—

 
6.7

 
—

Mortgage and asset-backed securities
45.9

 
—

 
45.9

 
—

Total long-term investments
318.4

 
94.8

 
209.8

 
13.8

Other assets:
 
 
 
 
 
 
 
Derivative assets
18.0

 
—

 
18.0

 
—

Total
$
2,208.9

 
$
1,887.2

 
$
307.9

 
$
13.8

Liabilities:
 
 
 
 
 
 
 
Accrued liabilities:
 
 
 
 
 
 
 
Derivative liabilities
$
2.4

 
$
0.4

 
$
2.0

 
$
—

 
 
 
 
Fair Value Measurements at Reporting Date Using
 
Balance at
Sep 29, 2013
 
Quoted Prices
in Active
Markets for 
Identical Assets
(Level 1)
 
Significant 
Other Observable 
Inputs
(Level 2)
 
Significant
Unobservable  Inputs
(Level 3)
Assets:
 
 
 
 
 
 
 
Cash and cash equivalents
$
2,575.7

 
$
2,575.7

 
$
—

 
$
—

Short-term investments:
 
 
 
 
 
 
 
Available-for-sale securities
 
 
 
 
 
 
 
Agency obligations
20.0

 
—

 
20.0

 
—

Commercial paper
127.0

 
—

 
127.0

 
—

Corporate debt securities
57.5

 
—

 
57.5

 
—

US government treasury securities
352.9

 
352.9

 
—

 
—

Certificates of deposit
34.1

 
—

 
34.1

 
—

Total available-for-sale securities
591.5

 
352.9

 
238.6

 
—

Trading securities
66.6

 
66.6

 
—

 
—

Total short-term investments
658.1

 
419.5

 
238.6

 
—

Prepaid expenses and other current assets:
 
 
 
 
 
 
 
Derivative assets
12.5

 
—

 
12.5

 
—

Long-term investments:
 
 
 
 
 
 
 
Available-for-sale securities
 
 
 
 
 
 
 
Agency obligations
8.1

 
—

 
8.1

 
—

Corporate debt securities
36.8

 
—

 
36.8

 
—

Auction rate securities
13.4

 
—

 
—

 
13.4

Total long-term investments
58.3

 
—

 
44.9

 
13.4

Other assets:
 
 
 
 
 
 
 
Derivative assets
11.4

 
—

 
11.4

 
—

Total
$
3,316.0

 
$
2,995.2

 
$
307.4

 
$
13.4

Liabilities:
 
 
 
 
 
 
 
Accrued liabilities:
 
 
 
 
 
 
 
Derivative liabilities
$
3.5

 
$
—

 
$
3.5

 
$
—

Other long-term liabilities:
 
 
 
 
 
 
 
Derivative liabilities
0.5

 
—

 
0.5

 
—

Total
$
4.0

 
$
—

 
$
4.0

 
$
—


There were no material transfers between levels and there was no significant activity within Level 3 instruments during the periods presented. The fair values of any financial instruments presented above exclude the impact of netting assets and liabilities when a legally enforceable master netting agreement exists.
Available-for-sale Securities
Long-term investments (except for auction rate securities, "ARS") generally mature within 7 years. ARS have contractual maturities ranging from 16 to 29 years and are collateralized by portfolios of student loans, substantially all of which are guaranteed by the United States Department of Education.
Proceeds from sales of available-for-sale securities were $1.5 billion and $60.2 million for fiscal years 2014 and 2013, respectively. Proceeds from sales of available-for-sale securities were not material in fiscal 2012. The increase in fiscal 2014 was due to the liquidation of a significant portion of our offshore investment portfolio in the fourth quarter of fiscal 2014 in anticipation of funding the acquisition of Starbucks Japan. Realized gains and losses on sales and maturities of available-for-sale securities were not material for fiscal years 2014, 2013, and 2012. Gross unrealized holding gains and losses on available-for-sale securities were not material as of September 28, 2014 and September 29, 2013.

Trading Securities
Trading securities include equity mutual funds and exchange-traded funds. Our trading securities portfolio approximates a portion of our liability under our Management Deferred Compensation Plan ("MDCP"), a defined contribution plan. Our MDCP liability was $106.4 million and $101.6 million as of September 28, 2014 and September 29, 2013, respectively, which is included in accrued compensation and related costs within accrued liabilities on the consolidated balance sheets. The changes in net unrealized holding gains and losses in the trading securities portfolio included in earnings for fiscal years 2014, 2013 and 2012 were net gains of $1.2 million, $11.7 million, and $10.9 million, respectively. Gross unrealized holding gains and losses on trading securities were not material as of September 28, 2014 and September 29, 2013.
Derivative Assets and Liabilities
Derivative assets and liabilities include foreign currency forward contracts, commodity futures contracts, collars (the combination of a purchased call option and a sold put option) and swaps, which are described further in Note 3, Derivative Financial Instruments. During fiscal 2014, we revised the classification of coffee and dairy futures from Level 2 to Level 1, as we use quoted prices in active markets for identical assets to determine fair value.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Assets and liabilities recognized or disclosed at fair value 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. Impairment of property, plant, and equipment is included at Note 1, Summary of Significant Accounting Policies. During fiscal 2014 and 2013, there were no other material fair value adjustments.
Fair Value of Other Financial Instruments
The estimated fair value of our long-term debt based on the quoted market price (Level 2) is included at Note 9, Debt.
Inventories
Inventories
Inventories (in millions)
 
Sep 28, 2014
 
Sep 29, 2013
Coffee:
 
 
 
Unroasted
$
432.3

 
$
493.0

Roasted
238.9

 
235.4

Other merchandise held for sale
265.7

 
243.3

Packaging and other supplies
154.0

 
139.5

Total
$
1,090.9

 
$
1,111.2


Other merchandise held for sale includes, among other items, tea and serveware. Inventory levels vary due to seasonality, commodity market supply and price fluctuations.
As of September 28, 2014, we had committed to purchasing green coffee totaling $417 million under fixed-price contracts and an estimated $718 million under price-to-be-fixed contracts. As of September 28, 2014, approximately $29 million of our price-to-be-fixed contracts were effectively fixed through the use of futures contracts and approximately $16 million were price-protected through the use of collar instruments. Price-to-be-fixed contracts are purchase commitments whereby the quality, quantity, delivery period, and other negotiated terms are agreed upon, but the date, and therefore the price, 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 such purchase commitments is remote.
Equity and Cost Investments
Equity and Cost Investments
Equity and Cost Investments (in millions)
 
Sep 28,
2014
 
Sep 29,
2013
Equity method investments
$
469.3

 
$
450.9

Cost method investments
45.6

 
45.6

Total
$
514.9

 
$
496.5



Equity Method Investments
As of September 28, 2014, we had a 50% ownership interest in each of the following international equity method investees: Starbucks Coffee Korea Co., Ltd.; President Starbucks Coffee Corporation (Taiwan); President Starbucks Coffee (Shanghai) Company Limited; and Tata Starbucks Limited (India). In addition, we had a 49% ownership interest in Starbucks Coffee España, S.L. ("Starbucks Spain") and a 39.5% ownership interest in Starbucks Coffee Japan, Ltd. ("Starbucks Japan"). These international entities operate licensed Starbucks® retail stores.
We also license the rights to produce and distribute Starbucks-branded products to our 50% owned joint venture, The North American Coffee Partnership with the Pepsi-Cola Company, which develops and distributes bottled Starbucks® beverages, including Frappuccino® coffee drinks, Starbucks Doubleshot® espresso drinks, Starbucks Refreshers® beverages, and Starbucks Discoveries Iced Café Favorites®.
As of September 28, 2014, the aggregate market value of our investment in Starbucks Japan was approximately $762 million, determined based on its available quoted market price, which exceeds its carrying value of $181 million. On October 31, 2014, we acquired an additional 39.5% ownership interest in Starbucks Japan, converting it to a consolidated company-operated market. See further discussion at Note 18, Subsequent Event.
In the fourth quarter of fiscal 2014, we sold our 50% equity method ownership interest in our Malaysian joint venture, Berjaya Starbucks Coffee Company Sdn. Bhd., to our joint venture partner, Berjaya Food Berhad, for a total purchase price of $88.0 million. This transaction resulted in a gain of $67.8 million, which was included in net interest income and other in the consolidated statements of earnings.
In the fourth quarter of fiscal 2013, we acquired a 49% equity method ownership interest in Starbucks Spain from our licensee partner Sigla S.A. (Grupo Vips) for approximately $33 million in cash.
Our share of income and losses from our equity method investments is included in income from equity investees in the consolidated statements of earnings. Also included in this line item is our proportionate share of gross profit resulting from coffee and other product sales to, and royalty and license fee revenues generated from, equity investees. Revenues generated from these related parties were $219.2 million, $205.1 million, and $190.3 million in fiscal years 2014, 2013, and 2012, respectively. Related costs of sales were $121.2 million, $115.4 million, and $111.0 million in fiscal years 2014, 2013, and 2012, respectively. As of September 28, 2014 and September 29, 2013, there were $54.9 million and $48.3 million of accounts receivable from equity investees, respectively, on our consolidated balance sheets, primarily related to product sales and royalty revenues.
Summarized combined financial information of our equity method investees, which represent 100% of the investees’ financial information (in millions):
Financial Position as of
Sep 28,
2014
 
Sep 29,
2013
Current assets
$
701.3

 
$
675.8

Noncurrent assets
873.9

 
783.3

Current liabilities
615.6

 
466.6

Noncurrent liabilities
79.1

 
148.9


 
Results of Operations for Fiscal Year Ended
Sep 28,
2014
 
Sep 29,
2013
 
Sep 30,
2012
Net revenues
$
3,461.3

 
$
3,018.7

 
$
2,796.7

Operating income
467.7

 
434.8

 
353.5

Net earnings
382.6

 
358.0

 
286.7


Cost Method Investments
As of September 28, 2014, we had $19 million invested in equity interests of entities that develop and operate Starbucks® licensed stores in several global markets. We have the ability to acquire additional interests in some of these cost method investees at certain intervals. Depending on our total percentage ownership interest and our ability to exercise significant influence over financial and operating policies, additional investments may require a retroactive application of the equity method of accounting. We also have a $25 million investment in the preferred stock of Square, Inc.
During the fourth quarter of fiscal 2013, we sold our 18% interest in Starbucks Coffee Argentina S.R.L. to our joint venture partner Alsea, S.A.B. de C.V., for a total purchase price of $4.4 million. This transaction resulted in a loss of $1.0 million, which was included in net interest income and other in the consolidated statements of earnings.
During the second quarter of fiscal 2013, we sold our 18% interest in Cafe Sirena S. de R.L. de CV (a Mexican limited liability company), to our controlling joint venture partner, SC de Mexico, S.A. de CV, owned by Alsea, S.A.B. de C.V., for a total purchase price of $50.3 million, which included final working capital adjustments. This transaction resulted in a gain of $35.2 million, which was included in net interest income and other in the consolidated statements of earnings.
Supplemental Balance Sheet Information
Supplemental Balance Sheet Information
 Supplemental Balance Sheet Information (in millions)
Property, Plant and Equipment, net
 
Sep 28, 2014
 
Sep 29, 2013
Land
$
46.7

 
$
47.0

Buildings
278.1

 
259.6

Leasehold improvements
4,858.4

 
4,431.6

Store equipment
1,493.3

 
1,353.9

Roasting equipment
410.9

 
397.9

Furniture, fixtures and other
1,078.1

 
949.7

Work in progress
415.6

 
342.4

Property, plant and equipment, gross
8,581.1

 
7,782.1

Accumulated depreciation
(5,062.1
)
 
(4,581.6
)
Property, plant and equipment, net
$
3,519.0

 
$
3,200.5


Accrued Liabilities
 
Sep 28, 2014
 
Sep 29, 2013
Accrued compensation and related costs
$
437.9

 
$
420.2

Accrued occupancy costs
119.8

 
120.7

Accrued taxes
272.0

 
125.0

Accrued dividend payable
239.8

 
195.8

Other
444.9

 
407.6

Total accrued liabilities
$
1,514.4

 
$
1,269.3

Other Intangible Assets and Goodwill
Other Intangible Assets and Goodwill
Other Intangible Assets and Goodwill
Indefinite-Lived Intangible Assets
(in millions)
Sep 28, 2014
 
Sep 29, 2013
Trade names, trademarks and patents
$
197.5

 
$
190.5

Other indefinite-lived intangible assets
15.1

 
15.1

Total indefinite-lived intangible assets
$
212.6

 
$
205.6


Additional disclosure regarding changes in our intangible assets due to acquisitions is included at Note 2, Acquisitions and Divestitures.
Goodwill
Changes in the carrying amount of goodwill by reportable operating segment (in millions):
 
Americas
 
EMEA
 
China /
Asia Pacific
 
Channel
Development
 
All Other Segments
 
Total
Balance at September 30, 2012
 
 
 
 
 
 
 
 
 
 
 
Goodwill prior to impairment
$
235.9

 
$
60.0

 
$
75.3

 
$
23.8

 
$
12.7

 
$
407.7

Accumulated impairment charges
(8.6
)
 
—

 
—

 
—

 
—

 
(8.6
)
Goodwill
$
227.3

 
$
60.0

 
$
75.3

 
$
23.8

 
$
12.7

 
$
399.1

Acquisitions/(divestitures)
(3.7
)
 
—

 
—

 
—

 
467.5

 
463.8

Other(1)
(2.0
)
 
2.2

 
(0.2
)
 
—

 
—

 
—

Balance at September 29, 2013

 
 
 
 
 
 
 
 
 
 
Goodwill prior to impairment
$
230.2

 
$
62.2

 
$
75.1

 
$
23.8

 
$
480.2

 
$
871.5

Accumulated impairment charges
(8.6
)
 
—

 
—

 
—

 
—

 
(8.6
)
Goodwill
$
221.6

 
$
62.2

 
$
75.1

 
$
23.8

 
$
480.2

 
$
862.9

Impairment
—

 
—

 
—

 
—

 
(0.8
)
 
(0.8
)
Other(1)
(2.6
)
 
(3.1
)
 
(0.2
)
 
—

 
—

 
(5.9
)
Balance at September 28, 2014
 
 
 
 
 
 
 
 
 
 
 
Goodwill prior to impairment
$
227.6

 
$
59.1

 
$
74.9

 
$
23.8

 
$
480.2

 
$
865.6

Accumulated impairment charges
(8.6
)
 
—

 
—

 
—

 
(0.8
)
 
(9.4
)
Goodwill
$
219.0

 
$
59.1

 
$
74.9

 
$
23.8

 
$
479.4

 
$
856.2

(1) 
Other is primarily comprised of changes in the goodwill balance as a result of foreign exchange fluctuations.
Definite-Lived Intangible Assets
 
Sep 28, 2014
 
Sep 29, 2013
(in millions)
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
Acquired rights
$
36.8

 
$
(10.1
)
 
$
26.7

 
$
38.8

 
$
(7.1
)
 
$
31.7

Acquired trade secrets and processes
27.6

 
(5.4
)
 
22.2

 
27.6

 
(2.7
)
 
24.9

Trade names, trademarks and patents
21.6

 
(11.6
)
 
10.0

 
19.5

 
(9.8
)
 
9.7

Other definite-lived intangible assets
3.8

 
(1.8
)
 
2.0

 
3.8

 
(0.9
)
 
2.9

Total definite-lived intangible assets
$
89.8

 
$
(28.9
)
 
$
60.9

 
$
89.7

 
$
(20.5
)
 
$
69.2


Amortization expense for definite-lived intangible assets was $8.7 million, $7.7 million, and $4.5 million during fiscal 2014, 2013, and 2012, respectively.
Estimated future amortization expense as of September 28, 2014 (in millions):
Fiscal Year Ending
 
2015
$
9.3

2016
8.7

2017
8.4

2018
6.8

2019
6.5

Thereafter
21.2

Total estimated future amortization expense
$
60.9

Debt
Debt
Debt
Revolving Credit Facility and Commercial Paper Program
Our $750 million unsecured, revolving credit facility with various banks, of which $150 million may be used for issuances of letters of credit, is available for working capital, capital expenditures and other corporate purposes, including acquisitions and share repurchases, and is currently set to mature in February 2018. We may request, and the banks may grant, at their discretion, increases to the credit facility by a total additional amount of up to $750 million. Borrowings under the credit facility will bear interest at a variable rate based on LIBOR, and, for US dollar-denominated loans under certain circumstances, a Base Rate (as defined in the credit facility), in each case plus an applicable margin. The applicable margin is based on the better of (i) the Company's long-term credit ratings assigned by Moody's and Standard & Poor's rating agencies, and (ii) the Company's fixed charge coverage ratio, pursuant to a pricing grid set forth in the credit facility. The current applicable margin is 0.795% for Eurocurrency Rate Loans and 0.00% for Base Rate Loans. The credit facility contains provisions requiring us to maintain compliance with certain covenants, including a minimum fixed charge coverage ratio, which measures our ability to cover financing expenses. As a result of the arbitrator’s ruling on the Kraft litigation, the credit facility was amended on November 15, 2013 to exclude the impact of the litigation charge, including the impact on our fixed charge coverage ratio. As of September 28, 2014, we were in compliance with all applicable covenants. No amounts were outstanding under our credit facility as of September 28, 2014.
Under our commercial paper program, as approved by our Board of Directors, we may issue unsecured commercial paper notes up to a maximum aggregate amount outstanding at any time of $1 billion, with individual maturities that may vary, but not exceed 397 days from the date of issue. Amounts outstanding under the commercial paper program are to be backstopped by available commitments under our credit facility. Currently, we may issue up to $727 million under our commercial paper program (the $750 million committed credit facility amount, less $23 million in outstanding letters of credit). The proceeds from borrowings under our commercial paper program may be used for working capital needs, capital expenditures and other corporate purposes, including acquisitions and share repurchases. In the first quarter of fiscal 2014, we issued and subsequently repaid commercial paper borrowings of $225 million to fund a portion of the $2.8 billion payment for the Kraft arbitration matter. In the fourth quarter of fiscal 2014, we issued and subsequently repaid commercial paper borrowings of $25 million to fund other corporate purposes. There were no other commercial paper borrowings during fiscal 2014 or fiscal 2013.
Long-term Debt
In December 2013, we issued $400 million of 3-year 0.875% Senior Notes ("the 2016 notes") due December 2016, and $350 million of 5-year 2.000% Senior Notes ("the 2018 notes") due December 2018, in an underwritten registered public offering. Interest on both of these notes is payable semi-annually on June 5 and December 5 of each year, commencing on June 5, 2014.
In September 2013, we issued $750 million of 10-year 3.85% Senior Notes ("the 2023 notes") due October 2023, in an underwritten registered public offering. Interest on the 2023 notes is payable semi-annually on April 1 and October 1 of each year, commencing April 1, 2014.
In August 2007, we issued $550 million of 6.25% Senior Notes ("the 2017 notes") due in August 2017, in an underwritten registered public offering. Interest on the 2017 notes is payable semi-annually on February 15 and August 15 of each year.
Components of long-term debt including the associated interest rates and related fair values (in millions, except interest rates):
 
Sep 28, 2014
 
Sep 29, 2013
 
Stated Interest Rate
Effective Interest Rate (1)
Issuance
Face Value
Estimated Fair Value
 
Face Value
Estimated Fair Value
 
2016 notes
$
400.0

$
400

 
$
—

$
—

 
0.875
%
0.941
%
2017 notes
550.0

625

 
550.0

644

 
6.250
%
6.292
%
2018 notes
350.0

353

 
—

—

 
2.000
%
2.012
%
2023 notes
750.0

786

 
750.0

762

 
3.850
%
2.860
%
   Total
2,050.0

2,164

 
1,300.0

1,406

 
 
 
Aggregate unamortized discount
1.7

 
 
0.6

 
 
 
 
   Total
$
2,048.3

 
 
$
1,299.4

 
 
 
 
(1)
Includes the effects of the amortization of any premium or discount and any gain or loss upon settlement of related treasury locks or forward-starting interest rate swaps utilized to hedge the interest rate risk prior to the debt issuance.
The indentures under which the above notes were issued also require us to maintain compliance with certain covenants, including limits on future liens and sale and leaseback transactions on certain material properties. As of September 28, 2014, we were in compliance with each of these covenants.
Interest Expense
Interest expense, net of interest capitalized, was $64.1 million, $28.1 million, and $32.7 million in fiscal 2014, 2013 and 2012, respectively. In fiscal 2014, 2013, and 2012, $6.2 million, $10.4 million, and $3.2 million, respectively, of interest was capitalized for asset construction projects.
Leases
Leases
Leases
Rent expense under operating lease agreements (in millions):
Fiscal Year Ended
Sep 28, 2014
 
Sep 29, 2013
 
Sep 30, 2012
Minimum rent
$
907.4

 
$
838.3

 
$
759.0

Contingent rent
66.8

 
56.4

 
44.7

Total
$
974.2

 
$
894.7

 
$
803.7


Minimum future rental payments under non-cancelable operating leases as of September 28, 2014 (in millions):
Fiscal Year Ending
 
2015
$
925.6

2016
826.6

2017
696.3

2018
556.3

2019
450.8

Thereafter
1,502.3

Total minimum lease payments
$
4,957.9


We have subleases related to certain of our operating leases. During fiscal 2014, 2013, and 2012, we recognized sublease income of $13.3 million, $9.3 million, and $10.0 million, respectively.
Equity
Equity
Equity
In addition to 1.2 billion shares of authorized common stock with $0.001 par value per share, we have authorized 7.5 million shares of preferred stock, none of which was outstanding at September 28, 2014.
Included in additional paid-in capital in our consolidated statements of equity as of September 28, 2014 and September 29, 2013 is $39.4 million related to the increase in value of our share of the net assets of Starbucks Japan at the time of its initial public stock offering in fiscal 2002.    
We repurchased 10.5 million shares of common stock at a total cost of $769.8 million, and 10.8 million shares at a total cost of $544.1 million for the the years ended September 28, 2014 and September 29, 2013, respectively. As of September 28, 2014, 15.9 million shares remained available for repurchase under current authorizations.
During fiscal years 2014 and 2013, our Board of Directors declared the following dividends (in millions, except per share amounts):
 
Dividend Per Share
 
Record date
 
Total Amount
 
Payment Date
Fiscal Year 2014:
 
 
 
 
 
 
 
First quarter
$0.26
 
February 6, 2014
 
$196.4
 
February 21, 2014
Second quarter
$0.26
 
May 8, 2014
 
$195.5
 
May 23, 2014
Third quarter
$0.26
 
August 7, 2014
 
$195.3
 
August 22, 2014
Fourth quarter
$0.32
 
November 13, 2014
 
$239.8
 
November 28, 2014
Fiscal Year 2013:
 
 
 
 
 
 
 
First quarter
$0.21
 
February 7, 2013
 
$157.5
 
February 22, 2013
Second quarter
$0.21
 
May 9, 2013
 
$157.3
 
May 24, 2013
Third quarter
$0.21
 
August 8, 2013
 
$158.0
 
August 23, 2013
Fourth quarter
$0.26
 
November 14, 2013
 
$195.8
 
November 29, 2013

Comprehensive Income
Comprehensive income includes all changes in equity during the period, except those resulting from transactions with our shareholders. Comprehensive income is comprised of net earnings and other comprehensive income. Accumulated other comprehensive income reported on our consolidated balance sheets consists of foreign currency translation adjustments and the unrealized gains and losses, net of applicable taxes, on available-for-sale securities and on derivative instruments designated and qualifying as cash flow and net investment hedges.
Changes in accumulated other comprehensive income ("AOCI") by component, for the year ended September 28, 2014, net of tax:
(in millions)
 Available-for-Sale Securities
 
 Cash Flow Hedges
 
 Net Investment Hedges
 
Translation Adjustment
 
Total
Net gains/(losses) in AOCI at September 29, 2013
$
(0.5
)
 
$
26.8

 
$
(12.9
)
 
$
53.6

 
$
67.0

Net gains/(losses) recognized in OCI before reclassifications
1.0

 
16.3

 
16.1

 
(77.4
)
 
(44.0
)
Net (gains)/losses reclassified from AOCI to earnings
(0.9
)
 
3.2

 
—

 
—

 
2.3

Other comprehensive income/(loss)
0.1

 
19.5

 
16.1

 
(77.4
)
 
(41.7
)
Net gains/(losses) in AOCI at September 28, 2014
$
(0.4
)
 
$
46.3

 
$
3.2

 
$
(23.8
)
 
$
25.3

Impact of reclassifications from AOCI on the consolidated statements of earnings related to cash flow hedges for the year ended September 28, 2014:
AOCI
Components
 
Amounts Reclassified
from AOCI
(in millions)
 
Affected Line Item in
the Statements of Earnings
Gains/(losses) on cash flow hedges
 
 
 
 
Interest rate hedges
 
$
5.0

 
Interest expense
Foreign currency hedges
 
5.1

 
Revenue
Foreign currency/coffee hedges
 
(10.0
)
 
Cost of sales including occupancy costs
 
 
0.1

 
Total before tax
 
 
(3.3
)
 
Tax (expense)/benefit
 
 
$
(3.2
)
 
Net of tax
Employee Stock and Benefit Plans
Employee Stock and Benefit Plans
Employee Stock and Benefit Plans
We maintain several equity incentive plans under which we may grant non-qualified stock options, incentive stock options, restricted stock, restricted stock units ("RSUs"), or stock appreciation rights to employees, non-employee directors and consultants. We issue new shares of common stock upon exercise of stock options and the vesting of RSUs. We also have an employee stock purchase plan ("ESPP").
As of September 28, 2014, there were 56.0 million shares of common stock available for issuance pursuant to future equity-based compensation awards and 7.4 million shares available for issuance under our ESPP.
Stock-based compensation expense recognized in the consolidated financial statements (in millions):
Fiscal Year Ended
Sep 28, 2014
 
Sep 29, 2013
 
Sep 30, 2012
Options
$
41.8

 
$
37.1

 
$
46.2

RSUs
141.4

 
105.2

 
107.4

Total stock-based compensation expense recognized in the consolidated statements of earnings
$
183.2

 
$
142.3

 
$
153.6

Total related tax benefit
$
63.4

 
$
49.8

 
$
54.2

Total capitalized stock-based compensation included in net property, plant and equipment and inventories on the consolidated balance sheets
$
1.9

 
$
1.8

 
$
2.0


Stock Option Plans
Stock options to purchase our common stock are granted at the fair value of the stock on the grant date. The majority of options become exercisable in four equal installments beginning a year from the grant date and generally expire 10 years from the grant date. Options granted to non-employee directors generally vest over one to three years. Nearly all outstanding stock options are non-qualified stock options.
The fair value of stock option awards was estimated at the grant date with the following weighted average assumptions for fiscal years 2014, 2013, and 2012:
 
Employee Stock Options
Granted During the Period
Fiscal Year Ended
2014
 
2013
 
2012
Expected term (in years)
4.5

 
4.8

 
4.8

Expected stock price volatility
26.8
%
 
34.0
%
 
38.2
%
Risk-free interest rate
1.1
%
 
0.7
%
 
1.0
%
Expected dividend yield
1.3
%
 
1.6
%
 
1.5
%
Weighted average grant price
$
80.23

 
$
51.23

 
$
44.26

Estimated fair value per option granted
$
16.72

 
$
12.88

 
$
12.79


The expected term of the options represents the estimated period of time until exercise, and is based on historical experience of similar awards, giving consideration to the contractual terms, vesting schedules and expectations of future employee behavior. Expected stock price volatility is based on a combination of historical volatility of our stock and the one-year implied volatility of Starbucks traded options, for the related vesting periods. The risk-free interest rate is based on the implied yield available on US Treasury zero-coupon issues with an equivalent remaining term. The dividend yield assumption is based on our anticipated cash dividend payouts. The amounts shown above for the estimated fair value per option granted are before the estimated effect of forfeitures, which reduce the amount of expense recorded in the consolidated statements of earnings.
Stock option transactions for the year ended September 28, 2014 (in millions, except per share and contractual life amounts):
 
Shares
Subject to
Options
 
Weighted
Average
Exercise
Price
per Share
 
Weighted
Average
Remaining
Contractual
Life (Years)
 
Aggregate
Intrinsic
Value
Outstanding, September 29, 2013
22.0

 
$
29.11

 
6.0
 
$
1,060

Granted
3.1

 
80.23

 
 
 
 
Exercised
(4.8
)
 
24.27

 
 
 
 
Expired/forfeited
(0.5
)
 
51.80

 
 
 
 
Outstanding, September 28, 2014
19.8

 
37.86

 
5.8
 
754

Exercisable, September 28, 2014
12.7

 
25.32

 
4.4
 
631

Vested and expected to vest, September 28, 2014
19.2

 
36.89

 
5.7
 
747


The aggregate intrinsic value in the table above, which is the amount by which the market value of the underlying stock exceeded the exercise price of outstanding options, is before applicable income taxes and represents the amount optionees would have realized if all in-the-money options had been exercised on the last business day of the period indicated.
As of September 28, 2014, total unrecognized stock-based compensation expense, net of estimated forfeitures, related to nonvested stock options was approximately $35 million, before income taxes, and is expected to be recognized over a weighted average period of approximately 2.6 years. The total intrinsic value of stock options exercised was $258 million, $539 million, and $440 million during fiscal years 2014, 2013, and 2012, respectively. The total fair value of options vested was $44 million, $56 million, and $59 million during fiscal years 2014, 2013, and 2012, respectively.
RSUs
We have both time-vested and performance-based RSUs. Time-vested RSUs are awarded to eligible employees and non-employee directors and entitle the grantee to receive shares of common stock at the end of a vesting period, subject solely to the employee’s continuing employment or the non-employee director's continuing service. The majority of RSUs vest in two equal annual installments beginning a year from the grant date. Our performance-based RSUs are awarded to eligible employees and entitle the grantee to receive shares of common stock if we achieve specified performance goals during the performance period and the grantee remains employed during the subsequent vesting period.
RSU transactions for the year ended September 28, 2014 (in millions, except per share and contractual life amounts):
 
Number
of
Shares
 
Weighted
Average
Grant Date
Fair Value
per Share
 
Weighted
Average
Remaining
Contractual
Life (Years)
 
Aggregate
Intrinsic
Value
Nonvested, September 29, 2013
5.8

 
$
44.08

 
0.9
 
$
452

Granted
2.9

 
80.13

 
 
 
 
Vested
(2.6
)
 
40.08

 
 
 
 
Forfeited/canceled
(0.7
)
 
65.59

 
 
 
 
Nonvested, September 28, 2014
5.4

 
62.34

 
1.0
 
407


For fiscal 2013 and 2012, the weighted average fair value per RSU granted was $50.23 and $44.05, respectively. As of September 28, 2014, total unrecognized stock-based compensation expense related to nonvested RSUs, net of estimated forfeitures, was approximately $113 million, before income taxes, and is expected to be recognized over a weighted average period of approximately 2.0 years. The total fair value of RSUs vested was $103 million, $104 million and $80 million during fiscal years 2014, 2013, and 2012, respectively.
ESPP
Our ESPP allows eligible employees to contribute up to 10% of their base earnings toward the quarterly purchase of our common stock, subject to an annual maximum dollar amount. The purchase price is 95% of the fair market value of the stock on the last business day of the quarterly offering period. The number of shares issued under our ESPP was 0.4 million in fiscal 2014.

Deferred Stock Plans
Our 1997 Deferred Stock Plan for certain key-employees enabled participants in the plan to defer receipt of ownership of common shares from the exercise of nonqualified stock options. Pursuant to this plan, our chairman, president and ceo elected to defer receipt of approximately 3.4 million shares of common stock (as adjusted for stock splits since 1997). In November 2006, he re-deferred receipt of the shares until December 21, 2012 (or earlier if his employment with Starbucks terminated before such date). On December 21, 2012, the deferral period ended and pursuant to the terms of the plan, we issued approximately 2.2 million shares of common stock to him and withheld approximately 1.2 million shares to satisfy tax withholdings. As of September 28, 2014 there were no remaining deferrals under the terms of this plan and no new deferrals are permitted.
We have a Deferred Compensation Plan for Non-Employee Directors under which non-employee directors may, for any fiscal year, irrevocably elect to defer receipt of shares of common stock the director would have received upon vesting of restricted stock units. The number of deferred shares outstanding related to deferrals made under this plan is not material.
Defined Contribution Plans
We maintain voluntary defined contribution plans, both qualified and non-qualified, covering eligible employees as defined in the plan documents. Participating employees may elect to defer and contribute a portion of their eligible compensation to the plans up to limits stated in the plan documents, not to exceed the dollar amounts set by applicable laws.
Our matching contributions to all US and non-US plans were $73.0 million, $54.7 million, and $59.8 million in fiscal years 2014, 2013, and 2012, respectively.
Income Taxes
Income Taxes
Income Taxes
Components of earnings/(loss) before income taxes (in millions):
Fiscal Year Ended
Sep 28, 2014
 
Sep 29, 2013
 
Sep 30, 2012
 
 
Total
Litigation charge
All Other
 
United States
$
2,572.4

 
$
(674.0
)
$
(2,784.1
)
$
2,110.1

 
$
1,679.6

Foreign
587.3

 
444.1

—

444.1

 
379.5

Total earnings/(loss) before income taxes
$
3,159.7

 
$
(229.9
)
$
(2,784.1
)
$
2,554.2

 
$
2,059.1



Provision/(benefit) for income taxes (in millions):
Fiscal Year Ended
Sep 28, 2014
 
Sep 29, 2013
 
Sep 30, 2012
 
 
Total
Litigation charge
All Other
 
Current taxes:
 
 
 
 
 
 
 
US federal
$
822.7

 
$
616.6

$
—

$
616.6

 
$
466.0

US state and local
132.9

 
93.8

—

93.8

 
79.9

Foreign
128.8

 
95.9

—

95.9

 
76.8

Total current taxes
1,084.4

 
806.3

—

806.3

 
622.7

Deferred taxes:
 
 
 
 
 
 
 
US federal
12.0

 
(898.8
)
(922.3
)
23.5

 
49.2

US state and local
(4.9
)
 
(144.0
)
(148.7
)
4.7

 
(0.7
)
Foreign
0.5

 
(2.2
)
—

(2.2
)
 
3.2

Total deferred taxes
7.6

 
(1,045.0
)
(1,071.0
)
26.0

 
51.7

Total income tax expense/(benefit)
$
1,092.0

 
$
(238.7
)
$
(1,071.0
)
$
832.3

 
$
674.4


Reconciliation of the statutory US federal income tax rate with our effective income tax rate:
Fiscal Year Ended
Sep 28, 2014
 
Sep 29, 2013
 
Sep 30, 2012
 
 
Total
Litigation charge
All Other
 
Statutory rate
35.0
 %
 
35.0
%
35.0
%
35.0
 %
 
35.0
 %
State income taxes, net of federal tax benefit
2.6

 
15.8

3.5

2.4

 
2.5

Benefits and taxes related to foreign operations
(1.9
)
 
37.5

—

(3.4
)
 
(3.3
)
Domestic production activity deduction
(0.7
)
 
8.1

—

(0.7
)
 
(0.7
)
Domestic tax credits
(0.2
)
 
2.8

—

(0.3
)
 
(0.3
)
Charitable contributions
(0.4
)
 
3.9

—

(0.3
)
 
(0.5
)
Other, net
0.2

 
0.7

—

(0.1
)
 
0.1

Effective tax rate
34.6
 %
 
103.8
%
38.5
%
32.6
 %
 
32.8
 %

Our effective tax rate in fiscal 2013 was significantly affected by the litigation charge we recorded as a result of the conclusion of our arbitration with Kraft. In order to provide a more meaningful analysis of tax expense and the effective tax rate, the tables above present separate reconciliations of the effect of the litigation charge. The deferred tax asset related to the litigation charge is estimated to be recovered over a period of 15 years; the deferred tax asset has been classified between current and non-current consistent with the expected recovery period for income tax reporting purposes.
US income and foreign withholding taxes have not been provided on approximately $2.2 billion of cumulative undistributed earnings of foreign subsidiaries and equity investees. We intend to reinvest these earnings for the foreseeable future. If these amounts were distributed to the US, in the form of dividends or otherwise, we would be subject to additional US income taxes, which could be material. Determination of the amount of unrecognized deferred income tax liabilities on these earnings is not practicable because of the complexities with its hypothetical calculation, and the amount of liability, if any, is dependent on circumstances existing if and when remittance occurs.
Tax effect of temporary differences and carryforwards that comprise significant portions of deferred tax assets and liabilities (in millions):
 
Sep 28, 2014
 
Sep 29, 2013
Deferred tax assets:
 
 
 
Property, plant and equipment
$
78.5

 
$
64.9

Accrued occupancy costs
58.8

 
69.0

Accrued compensation and related costs
75.3

 
77.6

Other accrued liabilities
27.6

 
22.0

Asset retirement obligation asset
18.6

 
21.0

Deferred revenue
63.4

 
49.9

Asset impairments
49.5

 
33.3

Tax credits
20.3

 
19.1

Stock-based compensation
131.5

 
120.9

Net operating losses
104.4

 
99.0

Litigation charge
1,002.0

 
1,071.9

Other
77.0

 
62.7

Total
$
1,706.9

 
$
1,711.3

Valuation allowance
(166.8
)
 
(160.5
)
Total deferred tax asset, net of valuation allowance
$
1,540.1

 
$
1,550.8

Deferred tax liabilities:
 
 
 
Property, plant and equipment
(148.2
)
 
(182.9
)
Intangible assets and goodwill
(92.9
)
 
(81.6
)
Other
(89.4
)
 
(53.1
)
Total
(330.5
)
 
(317.6
)
Net deferred tax asset
$
1,209.6

 
$
1,233.2

Reported as:
 
 
 
Current deferred income tax assets
$
317.4

 
$
277.3

Long-term deferred income tax assets
903.3

 
967.0

Current deferred income tax liabilities (included in Accrued liabilities)
(4.2
)
 
(1.0
)
Long-term deferred income tax liabilities (included in Other long-term liabilities)
(6.9
)
 
(10.1
)
Net deferred tax asset
$
1,209.6

 
$
1,233.2


The valuation allowance as of September 28, 2014 and September 29, 2013 is primarily related to net operating losses and other deferred tax assets of consolidated foreign subsidiaries. The net change in the total valuation allowance was an increase of $6.3 million for both fiscal 2014 and 2013.
As of September 28, 2014, Starbucks has state tax credit carryforwards of $31.2 million with an expiration date of fiscal 2024. Starbucks has foreign net operating loss carryforwards of $342.4 million, with the predominant amount having no expiration date.
Uncertain Tax Positions
As of September 28, 2014, we had $112.7 million of gross unrecognized tax benefits of which $85.3 million, if recognized, would affect our effective tax rate. We recognized expense of $5.9 million, a benefit of $0.8 million, and a benefit of $0.7 million of interest and penalties in income tax expense, prior to the benefit of the federal tax deduction, for fiscal 2014, 2013 and 2012, respectively. As of September 28, 2014 and September 29, 2013, we had accrued interest and penalties of $10.6 million and $4.7 million, respectively, before the benefit of the federal tax deduction, included within the related tax liability on the consolidated balance sheets.
The following table summarizes the activity related to our unrecognized tax benefits (in millions):
 
Sep 28, 2014
 
Sep 29, 2013
 
Sep 30, 2012
Beginning balance
$
88.8

 
$
75.3

 
$
52.9

Increase related to prior year tax positions
1.4

 
8.9

 
8.8

Decrease related to prior year tax positions
(2.2
)
 
(9.3
)
 
—

Increase related to current year tax positions
26.7

 
19.3

 
20.0

Decrease related to current year tax positions
(1.9
)
 
(0.4
)
 
(1.1
)
Decreases related to settlements with taxing authorities
(0.1
)
 
—

 
(0.5
)
Decreases related to lapsing of statute of limitations
—

 
(5.0
)
 
(4.8
)
Ending balance
$
112.7

 
$
88.8

 
$
75.3


We are currently under routine audit by various jurisdictions inside and outside the US as well as US state taxing jurisdictions for fiscal years 2006 through 2013. We are no longer subject to US federal or state examination for years prior to fiscal year 2011, with the exception of eleven states. We are no longer subject to examination in any material international markets prior to 2006.
There is a reasonable possibility that our unrecognized tax benefit liability will change within 12 months; however, we do not expect this change to be material to the consolidated financial statements.
Earnings Per Share
Earnings per Share
Earnings per Share
Calculation of net earnings per common share ("EPS") — basic and diluted (in millions, except EPS):
Fiscal Year Ended
Sep 28, 2014
 
Sep 29, 2013
 
Sep 30, 2012
Net earnings attributable to Starbucks
$
2,068.1

 
$
8.3

 
$
1,383.8

Weighted average common shares and common stock units outstanding (for basic calculation)
753.1

 
749.3

 
754.4

Dilutive effect of outstanding common stock options and RSUs
10.0

 
13.0

 
18.6

Weighted average common and common equivalent shares outstanding (for diluted calculation)
763.1

 
762.3

 
773.0

EPS — basic
$
2.75

 
$
0.01

 
$
1.83

EPS — diluted
$
2.71

 
$
0.01

 
$
1.79


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. We had 2.7 million and 0.2 million out-of-the-money stock options as of September 28, 2014 and September 30, 2012, respectively. There were no out-of-the-money stock options as of September 29, 2013.
Commitments And Contingencies (Notes)
Commitments And Contingencies
Commitments and Contingencies
Legal Proceedings
On November 12, 2013, the arbitrator in our arbitration with Kraft Foods Global, Inc. (now known as Kraft Foods Group, Inc.) ("Kraft") ordered Starbucks to pay Kraft $2,227.5 million in damages plus prejudgment interest and attorneys' fees. We estimated prejudgment interest, which included an accrual through the estimated payment date, and attorneys' fees to be approximately $556.6 million. As a result, we recorded a litigation charge of $2,784.1 million in our fiscal 2013 operating results.
In the first quarter of fiscal 2014, Starbucks paid all amounts due to Kraft under the arbitration, including prejudgment interest and attorneys' fees, and fully extinguished the litigation charge liability. Of the $2,784.1 million litigation charge accrued in the fourth quarter of fiscal 2013, $2,763.9 million was paid and the remainder was released as a litigation credit to reflect a reduction to our estimated prejudgment interest payable as a result of paying our obligation earlier than anticipated.
Starbucks is party to various other legal proceedings arising in the ordinary course of business, including, at times, certain employment litigation cases that have been certified as class or collective actions, but 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 ceo, who is our chief operating decision maker, manages the segments, evaluates financial results, and makes key operating decisions. 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) Europe, Middle East, and Africa ("EMEA"); and 3) China/Asia Pacific ("CAP").
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) EMEA, 3) CAP, and 4) Global Consumer Products Group. In the second quarter of fiscal 2012, we renamed our Global Consumer Products Group segment "Channel Development."
Effective at the beginning of fiscal 2013, we decentralized certain leadership functions in the areas of retail marketing and category management, global store development and partner resources to support and align with the respective operating segment presidents. In conjunction with these moves, certain general and administrative and depreciation and amortization expenses associated with these functions, which were previously reported as unallocated corporate expenses within "Other," are now reported within the respective reportable operating segments to align with the regions which they support.
Concurrent with the change in reportable operating segments and realignment of certain operating expenses noted above, we revised our prior period financial information to reflect comparable financial information for the new segment structure and reporting changes. Historical financial information presented herein reflects these changes. There was no impact on consolidated net revenues, total operating expenses, operating income, or net earnings as a result of these changes.
Beginning in the second quarter of fiscal 2013, we removed unallocated corporate expenses from Other. Other is now referred to as All Other Segments and includes Teavana, Seattle's Best Coffee and Evolution Fresh, as well as our Digital Ventures business. Unallocated corporate operating expenses, which pertain primarily to corporate administrative functions that support the operating segments, but are not specifically attributable to or managed by any segment, are presented as a reconciling item between total segment operating results and consolidated financial results. While our consolidated results are not impacted, our historical segment financial information has been revised to be consistent with the current presentation.
Americas, EMEA and CAP operations sell coffee and other beverages, complementary food, packaged coffees, single-serve coffee products and a focused selection of merchandise through company-operated stores and licensed stores. Our Americas segment is our most mature business and has achieved significant scale. Certain markets within our EMEA and CAP operations are still in the early stages of development and require a more extensive support organization, relative to their current levels of revenue and operating income, than our Americas operations. The Americas and EMEA segments also include certain foodservice accounts, primarily in Canada and the UK. Our Americas segment also includes our La Boulange® retail stores.
Channel Development operations sell a selection of packaged 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, such as Frappuccino® coffee drinks, Starbucks Doubleshot® espresso drinks and Starbucks Refreshers® beverages, as well as Starbucks- and Tazo-branded single-serve products. The US foodservice business, which is included in the Channel Development segment, sells coffee and other related products to institutional foodservice companies.
Consolidated revenue mix by product type (in millions):
Fiscal Year Ended
Sep 28, 2014
 
Sep 29, 2013
 
Sep 30, 2012
Beverage
$
9,458.4

 
58
%
 
$
8,674.7

 
58
%
 
$
7,883.8

 
59
%
Food
2,505.2

 
15
%
 
2,189.8

 
15
%
 
1,875.1

 
14
%
Packaged and single-serve coffees and teas
2,370.0

 
14
%
 
2,206.5

 
15
%
 
1,965.8

 
15
%
Other(1)
2,114.2

 
13
%
 
1,795.8

 
12
%
 
1,552.1

 
12
%
Total
$
16,447.8

 
100
%
 
$
14,866.8

 
100
%
 
$
13,276.8

 
100
%
(1) 
"Other" primarily includes royalty and licensing revenues, beverage-related ingredients, ready-to-drink beverages and serveware, among other items.
In fiscal 2014, we moved ready-to-drink beverage revenues from the "Food" category to the "Other" category and combined packaged and single-serve teas, which were previously included in the "Other" category, with packaged and single serve coffees, which are now categorized as "Packaged and single-serve coffees and teas." Additionally, we revised our discount allocation methodology to more precisely allocate sales discounts to the various revenue product categories. None of these changes had a material impact on the composition of our revenue mix by product type. Prior period amounts have been revised to be consistent with the current period presentation.
Information by geographic area (in millions):
Fiscal Year Ended
Sep 28, 2014
 
Sep 29, 2013
 
Sep 30, 2012
Net revenues from external customers:
 
 
 
 
 
United States
$
12,590.6

 
$
11,389.6

 
$
10,154.8

Other countries
3,857.2

 
3,477.2

 
3,122.0

Total
$
16,447.8

 
$
14,866.8

 
$
13,276.8


No customer accounts for 10% or more of our revenues. Revenues are shown based on the geographic location of our customers. Revenues from countries other than the US consist primarily of revenues from Canada, the UK, and China, which together account for approximately 65% of net revenues from other countries for fiscal 2014.
Fiscal Year Ended
Sep 28, 2014
 
Sep 29, 2013
 
Sep 30, 2012
Long-lived assets:
 
 
 
 
 
United States
$
5,135.8

 
$
4,641.3

 
$
2,767.1

Other countries
1,448.4

 
1,404.0

 
1,252.5

Total
$
6,584.2

 
$
6,045.3

 
$
4,019.6


Management evaluates the performance of its operating segments based on net revenues and operating income. The accounting policies of the operating segments are the same as those described in Note 1, Summary of Significant Accounting Policies. Operating income represents earnings before net interest income and other, interest expense and income taxes. Management does not evaluate the performance of its operating segments using asset measures. The identifiable assets by segment disclosed in this note are those assets specifically identifiable within each segment and include cash and cash equivalents, net property, plant and equipment, equity and cost investments, goodwill, and other intangible assets. Assets not identified by reportable operating segment below are corporate assets and are primarily comprised of cash and cash equivalents available for general corporate purposes, investments, assets of the corporate headquarters and roasting facilities, and inventory.

The table below presents financial information for our reportable operating segments and All Other Segments for the years ended September 28, 2014, September 29, 2013, and September 30, 2012, including reclassifications resulting from the correction of the immaterial error discussed in Note 1, Summary of Significant Accounting Policies. The reclassifications for fiscal years 2013 and 2012 were $21.8 million and $19.2 million for the Channel Development segment, respectively, and $3.6 million and $3.5 million for All Other Segments, respectively.
(in millions)
Americas
 
EMEA
 
China /
Asia Pacific
 
Channel
Development
 
All Other Segments
 
Segment
Total
Fiscal 2014
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
$
11,980.5

 
$
1,294.8

 
$
1,129.6

 
$
1,546.0

 
$
496.9

 
$
16,447.8

Depreciation and amortization expenses
469.5

 
59.4

 
46.1

 
1.8

 
15.2

 
592.0

Income from equity investees
—

 
3.7

 
164.0

 
100.6

 
—

 
268.3

Operating income/(loss)
2,809.0

 
119.2

 
372.5

 
557.2

 
(26.8
)
 
3,831.1

Total assets
2,521.4

 
663.0

 
939.8

 
84.6

 
825.2

 
5,034.0

 
 
 
 
 
 
 
 
 
 
 
 
Fiscal 2013
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
$
11,000.8

 
$
1,160.0

 
$
917.0

 
$
1,398.9

 
$
390.1

 
$
14,866.8

Depreciation and amortization expenses
429.3

 
55.5

 
33.8

 
1.1

 
11.7

 
531.4

Income from equity investees
2.4

 
0.4

 
152.0

 
96.6

 
—

 
251.4

Operating income/(loss)
2,365.2

 
64.2

 
321.2

 
415.5

 
(34.5
)
 
3,131.6

Total assets
2,323.4

 
510.6

 
805.0

 
89.2

 
821.1

 
4,549.3

 
 
 
 
 
 
 
 
 
 
 
 
Fiscal 2012
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
$
9,936.0

 
$
1,141.3

 
$
721.4

 
$
1,273.0

 
$
205.1

 
$
13,276.8

Depreciation and amortization expenses
392.4

 
57.1

 
23.2

 
1.3

 
2.5

 
476.5

Income from equity investees
2.1

 
0.3

 
122.4

 
85.2

 
0.7

 
210.7

Operating income/(loss)
2,020.4

 
6.8

 
252.6

 
340.4

 
(27.4
)
 
2,592.8

Total assets
2,199.0

 
467.4

 
656.6

 
88.8

 
80.8

 
3,492.6


The following table reconciles total segment operating income in the table above to consolidated earnings/(loss) before income taxes (in millions):
Fiscal Year Ended
Sep 28, 2014
 
Sep 29, 2013
 
Sep 30, 2012
Total segment operating income
$
3,831.1

 
$
3,131.6

 
$
2,592.8

Unallocated corporate operating expenses(1)
(750.0
)
 
(3,457.0
)
 
(595.4
)
Consolidated operating income/(loss)
3,081.1

 
(325.4
)
 
1,997.4

Interest income and other, net
142.7

 
123.6

 
94.4

Interest expense
(64.1
)
 
(28.1
)
 
(32.7
)
Earnings/(loss) before income taxes
$
3,159.7

 
$
(229.9
)
 
$
2,059.1

(1) Fiscal 2013 includes a pretax charge of $2,784.1 million resulting from the litigation charge we recorded associated with the conclusion of our arbitration with Kraft.
Selected Quarterly Financial Information
Selected Quarterly Financial Information (unaudited)
Selected Quarterly Financial Information (unaudited; in millions, except EPS)

 
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
 
Full
Year
Fiscal 2014:
 
 
 
 
 
 
 
 
 
Net revenues
$
4,239.6

 
$
3,873.8

 
$
4,153.7

 
$
4,180.8

 
$
16,447.8

Operating income
813.5

 
644.1

 
768.5

 
854.9

 
3,081.1

Net earnings attributable to Starbucks
540.7

 
427.0

 
512.6

 
587.9

 
2,068.1

EPS — diluted
0.71

 
0.56

 
0.67

 
0.77

 
2.71

Fiscal 2013:
 
 
 
 
 
 
 
 
 
Net revenues(1)
$
3,793.2

 
$
3,549.6

 
$
3,735.3

 
$
3,788.8

 
$
14,866.8

Operating income/(loss)(2)
630.6

 
544.1

 
615.2

 
(2,115.2
)
 
(325.4
)
Net earnings/(loss) attributable to Starbucks(2)
432.2

 
390.4

 
417.8

 
(1,232.0
)
 
8.3

EPS — diluted(2)
0.57

 
0.51

 
0.55

 
(1.64
)
 
0.01

(1) 
Includes the reclassifications resulting from the correction of the immaterial error discussed in Note 1, Summary of Significant Accounting Policies. We reclassified $6.4 million, $6.3 million, $6.4 million and $6.2 million for the first, second, third, and fourth quarters of fiscal year 2013, respectively, and $25.4 million for the full year of fiscal 2013.
(2) 
The fourth quarter of fiscal 2013 includes a pretax charge of $2,784.1 million resulting from the conclusion of the arbitration with Kraft.
Subsequent Event
Subsequent Event
Subsequent Event
On September 23, 2014, we entered into a tender offer bid agreement with Starbucks Coffee Japan, Ltd. ("Starbucks Japan"), a 39.5% owned equity method investment (as discussed in Note 6, Equity and Cost Investments), and our joint venture partner, Sazaby League, Ltd. ("Sazaby"), to acquire the remaining 60.5% ownership interest in Starbucks Japan. We are acquiring Starbucks Japan to further leverage our existing infrastructure to continue disciplined retail store growth and expand our presence into other channels in the Japan market, such as CPG, licensing and foodservice. Structured as a two-step tender offer, the full acquisition of Starbucks Japan is expected to be completed during fiscal 2015.
On October 31, 2014, we acquired Sazaby's 39.5% ownership interest through the first tender offer step for ¥55 billion ($511 million) in cash, bringing our total ownership in Starbucks Japan to a controlling 79% interest. Due to the limited time since the closing of the first tender offer step, the initial accounting for this acquisition is still in process but will be reflected in our first quarter of fiscal 2015 results. We will record the fair value of the assets acquired and liabilities assumed as of October 31, 2014, as well as adjust the carrying value of our existing 39.5% equity method investment to fair value. From the acquisition date forward, we will consolidate Starbucks Japan's results of operations and cash flows in our consolidated financial statements. Until the remaining 21% of minority shareholders’ interests are acquired, we will present them as net earnings attributable to noncontrolling interests in our consolidated statements of earnings.
We initiated the second tender offer step on November 10, 2014 to acquire the remaining 21% ownership interest held by the public shareholders and option holders of Starbucks Japan's common stock, with the objective of acquiring all of the remaining outstanding shares including outstanding stock options, which we expect to complete on December 29, 2014. Upon successful completion of the second tender offer step, we intend to commence a cash-out procedure under Japanese law (the "Cash-out") that will allow us to acquire all remaining shares. At the conclusion of the Cash-out, which we expect to complete during the first half of calendar 2015, Starbucks will own 100% of Starbucks Japan. The expected purchase price for the second tender offer step and the Cash-out is ¥44.5 billion (approximately $382 million with Japanese yen converted into US dollars at a reference conversion rate of 116.52 JPY to USD).
We funded the first tender offer step with $511 million in offshore cash. We also expect to fund a majority of the second tender offer step with offshore cash. Through the date of this filing, we have incurred approximately $5 million in acquisition-related costs, such as regulatory, legal, and advisory fees, which we have recorded within unallocated corporate general and administrative expenses during the respective fiscal periods in which they were incurred.
Summary of Significant Accounting Policies (Policies)
Principles of Consolidation 
Principles of Consolidation
The consolidated financial statements reflect the financial position and operating results of Starbucks, including wholly-owned subsidiaries and investees that we control. Investments in entities that we do not control, but have the ability to exercise significant influence over operating and financial policies, are accounted for under the equity method. Investments in entities in which we do not have the ability to exercise significant influence are accounted for under the cost method. Intercompany transactions and balances have been eliminated.
Fiscal Year End 
Fiscal Year End
Our fiscal year ends on the Sunday closest to September 30. Fiscal years 2014, 2013 and 2012 included 52 weeks
Estimates and Assumptions 
Estimates and Assumptions
Preparing financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Examples include, but are not limited to, estimates for inventory reserves, asset and goodwill impairments, assumptions underlying self-insurance reserves, income from unredeemed stored value cards, stock-based compensation forfeiture rates, future asset retirement obligations, and the potential outcome of future tax consequences of events that have been recognized in the financial statements. Actual results and outcomes may differ from these estimates and assumptions.
Cash and Cash Equivalents 
Cash and Cash Equivalents
We consider all highly liquid instruments with maturities of three months or less at the time of purchase, as well as credit card receivables for sales to customers in our company-operated stores that generally settle within two to five days, to be cash equivalents. We maintain cash and cash equivalent balances with financial institutions that exceed federally-insured limits. We have not experienced any losses related to these balances and we believe credit risk to be minimal.
Our cash management system provides for the funding of all major bank disbursement accounts on a daily basis as checks are presented for payment. Under this system, outstanding checks are in excess of the cash balances at certain banks, which creates book overdrafts. Book overdrafts are presented as a current liability in accounts payable on the consolidated balance sheets.
Investments 
Investments
Available-for-sale Securities
Our short-term and long-term investments consist primarily of investment-grade debt securities, all of which are classified as available-for-sale. Available-for-sale securities are recorded at fair value, and unrealized holding gains and losses are recorded, net of tax, as a component of accumulated other comprehensive income. Available-for-sale securities with remaining maturities of less than one year and those identified by management at the time of purchase to be used to fund operations within one year are classified as short-term. All other available-for-sale securities, including all of our auction rate securities, are classified as long-term. We evaluate our available-for-sale securities for other than temporary impairment on a quarterly basis. Unrealized losses are charged against net earnings when a decline in fair value is determined to be other than temporary. We review several factors to determine whether a loss is other than temporary, such as the length and extent of the fair value decline, the financial condition and near-term prospects of the issuer, and whether we have the intent to sell or will more likely than not be required to sell before the securities' anticipated recovery, which may be at maturity. Realized gains and losses are accounted for using the specific identification method. Purchases and sales are recorded on a trade date basis.
Trading Securities
We also have a trading securities portfolio, which is comprised of marketable equity mutual funds and equity exchange-traded funds. Trading securities are recorded at fair value with unrealized holding gains and losses recorded in net interest income and other in the consolidated statements of earnings. Our trading securities portfolio approximates a portion of our liability under our Management Deferred Compensation Plan ("MDCP"), which is included in accrued compensation and related costs, within accrued liabilities on the consolidated balance sheets. Changes in our MDCP liability are recorded in general and administrative expenses in the consolidated statements of earnings.
Equity and Cost Method Investments
We evaluate our equity and cost method investments for impairment annually, and when facts and circumstances indicate that the carrying value of such investments may not be recoverable. We review several factors to determine whether the loss is other than temporary, such as the length and extent of the fair value decline, the financial condition and near-term prospects of the investee, and whether we have the intent to sell or will more likely than not be required to sell before the investment’s anticipated recovery. If a decline in fair value is determined to be other than temporary, an impairment charge is recorded in net earnings.
Fair Value 
Fair Value
Fair value is the price we would receive to sell an asset or pay to transfer a liability (exit price) in an orderly transaction between market participants. For assets and liabilities recorded or disclosed at fair value on a recurring basis, we determine fair value based on the following:
Level 1: The carrying value of cash and cash equivalents approximates fair value because of the short-term nature of these instruments. For trading and US government treasury securities and commodity futures contracts, we use quoted prices in active markets for identical assets to determine fair value.
Level 2: When quoted prices in active markets for identical assets are not available, we determine the fair value of our available-for-sale securities and our over-the-counter forward contracts, collars, and swaps based upon factors such as the quoted market price of similar assets or a discounted cash flow model using readily observable market data, which may include interest rate curves and forward and spot prices for currencies and commodities, depending on the nature of the investment. The fair value of our long-term debt is estimated based on the quoted market prices for the same or similar issues or on the current rates offered to us for debt of the same remaining maturities.
Level 3: We determine the fair value of our auction rate securities using an internally-developed valuation model, using inputs that include interest rate curves, credit and liquidity spreads, and effective maturity.
Assets and liabilities recognized or disclosed at fair value 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. We determine the fair value of these items using Level 3 inputs, as described in the related sections below.
Derivative Instruments 
Derivative Instruments
We manage our exposure to various risks within the consolidated financial statements according to a market price risk management policy. Under this policy, we may engage in transactions involving various derivative instruments to hedge interest rates, commodity prices and foreign currency denominated revenue streams, inventory purchases, assets and liabilities, and investments in certain foreign operations. We record all derivatives on the consolidated balance sheets at fair value. We generally do not offset derivative assets and liabilities in our consolidated balance sheets or enter into derivative instruments with maturities longer than three years. We do not enter into derivative instruments for trading purposes.
We use various types of derivative instruments including forward contracts, commodity futures contracts, collars and swaps. Forward contracts and commodity futures contracts are agreements to buy or sell a quantity of a currency or commodity at a predetermined future date, and at a predetermined rate or price. A collar is a strategy that uses a combination of a purchased call option and a sold put option with equal premiums to hedge a portion of anticipated cash flows, or to limit the range of possible gains or losses on an underlying asset or liability to a specific range. A swap agreement is a contract between two parties to exchange cash flows based on specified underlying notional amounts, assets and/or indices.
Cash Flow Hedges
For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the derivative's gain or loss is reported as a component of other comprehensive income ("OCI") and recorded in accumulated other comprehensive income ("AOCI") on the consolidated balance sheets. The gain or loss is subsequently reclassified into net earnings when the hedged exposure affects net earnings.
To the extent that the change in the fair value of the contract corresponds to the change in the value of the anticipated transaction using forward rates on a monthly basis, the hedge is considered effective and is recognized as described above. The remaining change in fair value of the contract represents the ineffective portion, which is immediately recorded in net interest income and other in the consolidated statements of earnings.
Cash flow hedges related to anticipated transactions are designated and documented at the inception of each hedge by matching the terms of the contract to the underlying transaction. Cash flows from hedging transactions are classified in the same categories as the cash flows from the respective hedged items, which is discussed further at Note 3, Derivative Financial Instruments. Once established, cash flow hedges are generally not removed until maturity unless an anticipated transaction is no longer likely to occur. For dedesignated cash flow hedges or for transactions that are no longer likely to occur, the related accumulated derivative gains or losses are recognized in net interest income and other in the consolidated statements of earnings.
Net Investment Hedges
For derivative instruments that are designated and qualify as a net investment hedge, the effective portion of the derivative's gain or loss is reported as a component of OCI and recorded in AOCI. The gain or loss will be subsequently reclassified into net earnings when the hedged net investment is either sold or substantially liquidated.
To the extent that the change in the fair value of the forward contract corresponds to the change in value of the anticipated transactions using spot rates on a monthly basis, the hedge is considered effective and is recognized as described above. The remaining change in fair value of the forward contract represents the ineffective portion, which is immediately recognized in net interest income and other in the consolidated statements of earnings.
Derivatives Not Designated As Hedging Instruments
We also enter into certain foreign currency forward contracts, commodity futures contracts, collars and swaps that are not designated as hedging instruments for accounting purposes. The change in the fair value of these contracts is immediately recognized in net interest income and other in the consolidated statements of earnings.
Normal Purchase Normal Sale
We enter into fixed-price and price-to-be-fixed green coffee purchase commitments, which are described further at Note 5, Inventories. For both fixed-price and price-to-be-fixed purchase commitments, we expect to take delivery of and to utilize the coffee in a reasonable period of time and in the conduct of normal business. Accordingly, these purchase commitments qualify as normal purchases and are not recorded at fair value on our balance sheets.
Receivables, net of Allowance for Doubtful Accounts 
Receivables, net of Allowance for Doubtful Accounts
Our receivables are mainly comprised of receivables for product and equipment sales to and royalties from our licensees, as well as receivables from our CPG and foodservice business customers. Our allowance for doubtful accounts is calculated based on historical experience, customer credit risk and application of the specific identification method. As of September 28, 2014 and September 29, 2013, the allowance for doubtful accounts was $6.7 million and $5.7 million, respectively.
Inventories 
Inventories
Inventories are stated at the lower of cost (primarily moving average cost) or market. We record inventory reserves for obsolete and slow-moving inventory and for estimated shrinkage between physical inventory counts. Inventory reserves are based on inventory obsolescence trends, historical experience and application of the specific identification method. As of September 28, 2014 and September 29, 2013, inventory reserves were $31.2 million and $52.0 million, respectively.
Property, Plant and Equipment 
Property, Plant and Equipment
Property, plant and equipment, which includes assets under capital leases, are carried at cost less accumulated depreciation. Cost includes all direct costs necessary to acquire and prepare assets for use, including internal labor and overhead in some cases. Depreciation is computed using the straight-line method over estimated useful lives of the assets, generally ranging from 2 to 15 years for equipment and 30 to 40 years for buildings. Leasehold improvements are amortized over the shorter of their estimated useful lives or the related lease life, generally 10 years. For leases with renewal periods at our option, we generally use the original lease term, excluding renewal option periods, to determine estimated useful lives. If failure to exercise a renewal option imposes an economic penalty to us, we may determine at the inception of the lease that renewal is reasonably assured and include the renewal option period in the determination of the appropriate estimated useful lives.
The portion of depreciation expense related to production and distribution facilities is included in cost of sales including occupancy costs in the consolidated statements of earnings. The costs of repairs and maintenance are expensed when incurred, while expenditures for refurbishments and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. When assets are disposed of, whether through retirement or sale, the net gain or loss is recognized in net earnings. Long-lived assets to be disposed of are reported at the lower of their carrying amount or fair value less estimated costs to sell.
We evaluate property, plant and equipment for impairment when facts and circumstances indicate that the carrying values of such assets may not be recoverable. When evaluating for impairment, we first compare the carrying value of the asset to the asset’s estimated future undiscounted cash flows. If the estimated undiscounted future cash flows are less than the carrying value of the asset, we determine if we have an impairment loss by comparing the carrying value of the asset to the asset's estimated fair value and recognize an impairment charge when the asset’s carrying value exceeds its estimated fair value. The fair value of the asset is estimated using a discounted cash flow model based on forecasted future revenues and operating costs, using internal projections. Property, plant and equipment assets are grouped at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For company-operated store assets, the impairment test is performed at the individual store asset group level.
We recognized net disposition charges of $14.7 million, $17.4 million, and $16.5 million and net impairment charges of $19.0 million, $12.7 million, and $15.2 million in fiscal 2014, 2013, and 2012, respectively. The nature of the underlying asset that is impaired or disposed of will determine the operating expense line on which the related impact is recorded in the consolidated statements of earnings. For assets within our retail operations, net impairment and disposition charges are recorded in store operating expenses. For all other assets, these charges are recorded in cost of sales including occupancy costs, other operating expenses, or general and administrative expenses.
Goodwill 
Goodwill
We evaluate goodwill for impairment annually during our third fiscal quarter, or more frequently if an event occurs or circumstances change, such as material deterioration in performance or a significant number of store closures, that would indicate that impairment may exist. When evaluating goodwill for impairment, we may first perform a qualitative assessment to determine whether it is more likely than not that a reporting unit is impaired. If we do not perform a qualitative assessment, or if we determine that it is not more likely than not that the fair value of the reporting unit exceeds its carrying amount, we calculate the estimated fair value of the reporting unit. Fair value is the price a willing buyer would pay for the reporting unit and is typically calculated using a discounted cash flow model. If the carrying amount of the reporting unit exceeds the estimated fair value, an impairment charge is recorded to reduce the carrying value to the estimated fair value.
As part of our ongoing operations, we may close certain stores within a reporting unit containing goodwill due to underperformance of the store or inability to renew our lease, among other reasons. We may abandon certain assets associated with a closed store, including leasehold improvements and other non-transferable assets. When a portion of a reporting unit that constitutes a business is to be disposed of, goodwill associated with the business is included in the carrying amount of the business in determining any loss on disposal. Our evaluation of whether the portion of a reporting unit being disposed of constitutes a business occurs on the date of abandonment. Although an operating store meets the accounting definition of a business prior to abandonment, it does not constitute a business on the closure date because the remaining assets on that date do not constitute an integrated set of assets that are capable of being managed for the purpose of providing a return to investors. As a result, when closing individual stores, we do not include goodwill in the calculation of any loss on disposal of the related assets. As noted above, if store closures are indicative of potential impairment of goodwill at the reporting unit level, we perform an evaluation of our reporting unit goodwill when such closures occur. There were no material goodwill impairment charges recorded during fiscal 2014, 2013, and 2012.
Other Intangible Assets 
Other Intangible Assets
Other intangible assets consist primarily of trade names and trademarks with indefinite lives, which are tested for impairment annually during the third fiscal quarter, or more frequently if an event occurs or circumstances change that would indicate that impairment may exist. When evaluating other intangible assets for impairment, we may first perform a qualitative assessment to determine whether it is more likely than not that an intangible asset group is impaired. If we do not perform the qualitative assessment, or if we determine that it is not more likely than not that the fair value of the intangible asset group exceeds its carrying amount, we calculate the estimated fair value of the intangible asset group. Fair value is the price a willing buyer would pay for the reporting unit and is typically calculated using an income approach, such as a relief-from-royalty model. If the carrying amount of the intangible asset group exceeds the estimated fair value, an impairment charge is recorded to reduce the carrying value to the estimated fair value. In addition, we continuously monitor and may revise our intangible asset useful lives if and when facts and circumstances change.
Definite-lived intangible assets, which mainly consist of acquired rights, trade secrets, contract-based patents and copyrights, are amortized over their estimated useful lives, and are tested for impairment using a similar methodology to our property, plant and equipment, as described above.
There were no other intangible asset impairment charges recorded during fiscal 2014, 2013, and 2012.
Insurance Reserves 
Insurance Reserves
We use a combination of insurance and self-insurance mechanisms, including a wholly-owned captive insurance entity and participation in a reinsurance treaty, to provide for the potential liabilities for certain risks, including workers’ compensation, healthcare benefits, general liability, property insurance, and director and officers’ liability insurance. Liabilities associated with the risks that are retained by us are not discounted and are estimated, in part, by considering historical claims experience, demographics, exposure and severity factors, and other actuarial assumptions.
Revenue Recognition 
Revenue Recognition
Consolidated revenues are presented net of intercompany eliminations for wholly-owned subsidiaries and investees controlled by us and for product sales to and royalty and other fees from licensees accounted for under the equity method. Additionally, consolidated revenues are recognized net of any discounts, returns, allowances and sales incentives, including coupon redemptions and rebates.
Company-operated Store Revenues
Company-operated store revenues are recognized when payment is tendered at the point of sale. Company-operated store revenues are reported net of sales, use or other transaction taxes that are collected from customers and remitted to taxing authorities.
Licensed Store Revenues
Licensed store revenues consist of product and equipment sales to licensees, as well as royalties and other fees paid by licensees to use the Starbucks brand. Sales of coffee, tea and related products are generally recognized upon shipment to licensees, depending on contract terms. Shipping charges billed to licensees are also recognized as revenue, and the related shipping costs are included in cost of sales including occupancy costs in the consolidated statements of earnings.
Initial nonrefundable development fees for licensed stores are recognized upon substantial performance of services for new market business development activities, such as initial business, real estate and store development planning, as well as providing operational materials and functional training courses for opening new licensed retail markets. Additional store licensing fees are recognized when new licensed stores are opened. Royalty revenues based upon a percentage of reported sales, and other continuing fees, such as marketing and service fees, are recognized on a monthly basis when earned.
CPG, Foodservice and Other Revenues
CPG, foodservice and other revenues primarily include sales of packaged coffee and tea as well as a variety of ready-to-drink beverages and single-serve coffee and tea products to grocery, warehouse clubs and specialty retail stores, sales to our national foodservice accounts, and revenues from sales of products to and license fee revenues from manufacturers that produce and market Starbucks and Seattle’s Best Coffee branded products through licensing agreements. Sales of coffee, tea, ready-to-drink beverages and related products to grocery and warehouse club stores are generally recognized when received by the customer or distributor, depending on contract terms. Revenues are recorded net of sales discounts given to customers for trade promotions and other incentives and for sales return allowances, which are determined based on historical patterns.
Revenues from sales of products to manufacturers that produce and market Starbucks and Seattle’s Best Coffee branded products through licensing agreements are generally recognized when the product is received by the manufacturer or distributor. License fee revenues from manufacturers are based on a percentage of sales and are recognized on a monthly basis when earned. National foodservice account revenues are recognized, when the product is received by the customer or distributor.
Sales to customers through CPG channels and national foodservice accounts, including sales to national distributors, are recognized net of certain fees paid to the customer. We characterize these fees as a reduction of revenue unless we are able to identify a sufficiently separable benefit from the customer's purchase of our products such that we could have entered into an exchange transaction with a party other than the customer in order to receive such benefit, and we can reasonably estimate the fair value of such benefit.
Stored Value Cards
Revenues from our stored value cards, primarily Starbucks Cards, are recognized when redeemed or when we recognize breakage income, which occurs when the likelihood of redemption, based on historical experience, is deemed to be remote. Outstanding customer balances are included in deferred revenue on the consolidated balance sheets. There are no expiration dates on our stored value cards, and we do not charge any service fees that cause a decrement to customer balances. While we will continue to honor all stored value cards presented for payment, management may determine the likelihood of redemption to be remote for certain cards due to long periods of inactivity. In these circumstances, if management also determines there is no requirement for remitting balances to government agencies under unclaimed property laws, card balances may then be recognized as breakage income in net interest income and other in the consolidated statements of earnings. In fiscal 2014, 2013, and 2012, we recognized breakage income of $38.3 million, $33.0 million, and $65.8 million, respectively.
Customers in the US, Canada, and certain other countries who register their Starbucks Card are automatically enrolled in the My Starbucks Rewards® loyalty program and earn reward points ("Stars") with each purchase at participating Starbucks®, Teavana®, Evolution Fresh™ and La Boulange® stores, as well as on certain packaged coffee products purchased in select Starbucks® stores, at StarbucksStore.com, and through CPG channels. Reward program members receive various benefits depending on factors such as the number of Stars earned in a 12-month period. The value of Stars earned by our program members towards free product is included in deferred revenue and recorded as a reduction in revenue at the time the Stars are earned, based on the value of Stars that are projected to be redeemed.
Stored Value Cards 
Stored Value Cards
Revenues from our stored value cards, primarily Starbucks Cards, are recognized when redeemed or when we recognize breakage income, which occurs when the likelihood of redemption, based on historical experience, is deemed to be remote. Outstanding customer balances are included in deferred revenue on the consolidated balance sheets. There are no expiration dates on our stored value cards, and we do not charge any service fees that cause a decrement to customer balances. While we will continue to honor all stored value cards presented for payment, management may determine the likelihood of redemption to be remote for certain cards due to long periods of inactivity. In these circumstances, if management also determines there is no requirement for remitting balances to government agencies under unclaimed property laws, card balances may then be recognized as breakage income in net interest income and other in the consolidated statements of earnings. In fiscal 2014, 2013, and 2012, we recognized breakage income of $38.3 million, $33.0 million, and $65.8 million, respectively.
Customers in the US, Canada, and certain other countries who register their Starbucks Card are automatically enrolled in the My Starbucks Rewards® loyalty program and earn reward points ("Stars") with each purchase at participating Starbucks®, Teavana®, Evolution Fresh™ and La Boulange® stores, as well as on certain packaged coffee products purchased in select Starbucks® stores, at StarbucksStore.com, and through CPG channels. Reward program members receive various benefits depending on factors such as the number of Stars earned in a 12-month period. The value of Stars earned by our program members towards free product is included in deferred revenue and recorded as a reduction in revenue at the time the Stars are earned, based on the value of Stars that are projected to be redeemed.
Marketing & Advertising 
Marketing & Advertising
Our annual marketing expenses include many components, one of which is advertising costs. We expense most advertising costs as they are incurred, except for certain production costs that are expensed the first time the advertising takes place.
Marketing expenses totaled $315.5 million, $306.8 million and $277.9 million in fiscal 2014, 2013, and 2012, respectively. Included in these costs were advertising expenses, which totaled $198.9 million, $205.8 million and $182.4 million in fiscal 2014, 2013, and 2012, respectively.
Store Preopening Expenses 
Store Preopening Expenses
Costs incurred in connection with the start-up and promotion of new store openings are expensed as incurred.
Operating Leases 
Operating Leases
We lease retail stores, roasting, distribution and warehouse facilities, and office space for corporate administrative purposes under operating leases. Most lease agreements contain tenant improvement allowances, rent holidays, lease premiums, rent escalation clauses and/or contingent rent provisions. We recognize amortization of lease incentives, premiums and minimum rent expenses on a straight-line basis beginning on the date of initial possession, which is generally when we enter the space and begin to make improvements in preparation for intended use.
For tenant improvement allowances and rent holidays, we record a deferred rent liability within accrued liabilities, or other long-term liabilities, on the consolidated balance sheets and amortize the deferred rent over the terms of the leases as reductions to rent expense in the consolidated statements of earnings.
For premiums paid upfront to enter a lease agreement, we record a prepaid rent asset in prepaid expenses and other current assets on the consolidated balance sheets and amortize the deferred rent over the terms of the leases as additional rent expense in the consolidated statements of earnings.
For scheduled rent escalation clauses during the lease terms or for rental payments commencing at a date other than the date of initial possession, we record minimum rent expense on a straight-line basis over the terms of the leases in the consolidated statements of earnings.
Certain leases provide for contingent rent, which is determined as a percentage of gross sales in excess of specified levels. We record a contingent rent liability on the consolidated balance sheets and the corresponding rent expense when specified levels have been achieved or when we determine that achieving the specified levels during the fiscal year is probable.
When ceasing operations of company-operated stores under operating leases, in cases where the lease contract specifies a termination fee due to the landlord, we record such expense at the time written notice is given to the landlord. In cases where terms, including termination fees, are yet to be negotiated with the landlord, we will record the expense upon signing of an agreement with the landlord. In cases where the landlord does not allow us to prematurely exit the lease, but allows for subleasing, we estimate the fair value of any sublease income that can be generated from the location and recognize an expense equal to the present value of the remaining lease payments to the landlord less any projected sublease income at the cease-use date.
Asset Retirement Obligations 
Asset Retirement Obligations
We recognize a liability for the fair value of required asset retirement obligations ("ARO") when such obligations are incurred. Our AROs are primarily associated with leasehold improvements, which, at the end of a lease, we are contractually obligated to remove in order to comply with the lease agreement. At the inception of a lease with such conditions, we record an ARO liability and a corresponding capital asset in an amount equal to the estimated fair value of the obligation. We estimate the liability using a number of assumptions, including store closing costs, cost inflation rates and discount rates, and accrete it to its projected future value over time. The capitalized asset is depreciated using the same depreciation convention as leasehold improvement assets. Upon satisfaction of the ARO conditions, any difference between the recorded ARO liability and the actual retirement costs incurred is recognized as a gain or loss in cost of sales including occupancy costs in the consolidated statements of earnings. As of September 28, 2014 and September 29, 2013, our net ARO assets included in property, plant and equipment were $4.1 million and $3.8 million, respectively, and our net ARO liabilities included in other long-term liabilities were $28.4 million and $27.7 million, respectively.
Stock-based Compensation 
Stock-based Compensation
We maintain several equity incentive plans under which we may grant non-qualified stock options, incentive stock options, restricted stock, restricted stock units ("RSUs") or stock appreciation rights to employees, non-employee directors and consultants. We also have an employee stock purchase plan ("ESPP"). RSUs issued by us are equivalent to nonvested shares under the applicable accounting guidance. We record stock-based compensation expense based on the fair value of stock awards at the grant date and recognize the expense over the related service period following a graded vesting expense schedule. Expense for performance-based RSUs is recognized when it is probable the performance goal will be achieved. Performance goals are determined by the Board of Directors and may include measures such as earnings per share, operating income and return on invested capital. The fair value of each stock option granted is estimated on the grant date using the Black-Scholes-Merton option valuation model. The assumptions used to calculate the fair value of options granted are evaluated and revised, as necessary, to reflect market conditions and our historical experience. Options granted are valued using the multiple option valuation approach, and the resulting expense is recognized over the requisite service period for each separately vesting portion of the award. Compensation expense is recognized only for those options expected to vest, with forfeitures estimated at the date of grant based on our historical experience and future expectations. The fair value of RSUs is based on the closing price of Starbucks common stock on the award date, less the present value of expected dividends not received during the vesting period.
Foreign Currency Translation 
Foreign Currency Translation
Our international operations generally use their local currency as their functional currency. Assets and liabilities are translated at exchange rates in effect at the balance sheet date. Income and expense accounts are translated at the average monthly exchange rates during the year. Resulting translation adjustments are reported as a component of OCI and recorded in AOCI on the consolidated balance sheets.
Income Taxes 
Income Taxes
We compute income taxes using the asset and liability method, under which deferred income taxes are recognized based on the differences between the financial statement carrying amounts and the respective tax basis of our assets and liabilities. Deferred tax assets and liabilities are measured using current enacted tax rates expected to apply to taxable income in the years in which we expect the temporary differences to reverse. The effect of a change in tax rates on deferred taxes is recognized in income in the period that includes the enactment date.
We routinely evaluate the likelihood of realizing the benefit of our deferred tax assets and may record a valuation allowance if, based on all available evidence, we determine that some portion of the tax benefit will not be realized. In evaluating our ability to recover our deferred tax assets within the jurisdiction from which they arise, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.
In addition, our income tax returns are periodically audited by domestic and foreign tax authorities. These audits include review of our tax filing positions, including the timing and amount of deductions taken and the allocation of income between tax jurisdictions. We evaluate our exposures associated with our various tax filing positions and recognize a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the relevant taxing authorities, including resolutions of any related appeals or litigation processes, based on the technical merits of our position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. For uncertain tax positions that do not meet this threshold, we record a related liability. We adjust our unrecognized tax benefit liability and income tax expense in the period in which the uncertain tax position is effectively settled, the statute of limitations expires for the relevant taxing authority to examine the tax position, or when new information becomes available.
Starbucks recognizes interest and penalties related to income tax matters in income tax expense in the consolidated statements of earnings. Accrued interest and penalties are included within the related tax liability on the consolidated balance sheets.
Earnings per Share 
Earnings per Share
Basic earnings per share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed based on the weighted average number of shares of common stock and the effect of dilutive potential common shares outstanding during the period, calculated using the treasury stock method. Dilutive potential common shares include outstanding stock options and RSUs. Performance-based RSUs are considered dilutive when the related performance criterion has been met.
Common Stock Share Repurchases 
Common Stock Share Repurchases
We may repurchase shares of Starbucks common stock under a program authorized by our Board of Directors, including pursuant to a contract, instruction or written plan meeting the requirements of Rule 10b5-1(c)(1) of the Securities Exchange Act of 1934. Under applicable Washington State law, shares repurchased are retired and not displayed separately as treasury stock on the financial statements. Instead, the par value of repurchased shares is deducted from common stock and the excess repurchase price over par value is deducted from additional paid-in capital and from retained earnings, once additional paid-in capital is depleted.
Recent Accounting Pronouncements 
Recent Accounting Pronouncements
In May 2014, the Financial Accounting Standards Board ("FASB") issued guidance outlining a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers that supersedes most current revenue recognition guidance. This guidance requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, this guidance expands related disclosure requirements. The guidance will become effective for us at the beginning of our first quarter of fiscal 2018 and will require full or modified retrospective application. We are currently evaluating the impact this guidance will have on our financial statements as well as the expected adoption method.
In April 2014, the FASB issued guidance that changes the criteria for reporting discontinued operations. To qualify as a discontinued operation under the amended guidance, a component or group of components of an entity that has been disposed of or is classified as held for sale must represent a strategic shift that has or will have a major effect on the entity's operations and financial results. This guidance also expands related disclosure requirements. The guidance will become effective for us at the beginning of our first quarter of fiscal 2016. We do not expect the adoption of this guidance will have a material impact on our financial statements.
In July 2013, the FASB issued guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This guidance requires the unrecognized tax benefit to be presented in the financial statements as a reduction to a deferred tax asset. When a deferred tax asset is not available, or the asset is not intended to be used for this purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and not netted with a deferred tax asset. The guidance will become effective for us at the beginning of our first quarter of fiscal 2015. We do not expect the adoption of this guidance will have a material impact on our financial statements.
In March 2013, the FASB issued guidance on a parent's accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. This guidance requires a parent to release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The guidance will become effective for us at the beginning of our first quarter of fiscal 2015. We do not expect the adoption of this guidance will have a material impact on our financial statements.
In February 2013, the FASB issued guidance that adds additional disclosure requirements for items reclassified out of accumulated other comprehensive income. This guidance requires the disclosure of significant amounts reclassified from each component of accumulated other comprehensive income and the income statement line items affected by the reclassification. The guidance became effective for us at the beginning of our first quarter of fiscal 2014 and the additional disclosures are provided in Note 11, Equity, of these consolidated financial statements.
In January 2013, the FASB issued guidance clarifying the scope of disclosure requirements for offsetting assets and liabilities. The amended guidance limits the scope of balance sheet offsetting disclosures to derivatives, repurchase agreements, and securities lending transactions to the extent that they are offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement. The guidance became effective for us at the beginning of our first quarter of fiscal 2014 and did not have a material impact on our financial statements.
Recent Accounting Pronouncements Not Yet Adopted 
In May 2014, the Financial Accounting Standards Board ("FASB") issued guidance outlining a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers that supersedes most current revenue recognition guidance. This guidance requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, this guidance expands related disclosure requirements. The guidance will become effective for us at the beginning of our first quarter of fiscal 2018 and will require full or modified retrospective application. We are currently evaluating the impact this guidance will have on our financial statements as well as the expected adoption method.
In April 2014, the FASB issued guidance that changes the criteria for reporting discontinued operations. To qualify as a discontinued operation under the amended guidance, a component or group of components of an entity that has been disposed of or is classified as held for sale must represent a strategic shift that has or will have a major effect on the entity's operations and financial results. This guidance also expands related disclosure requirements. The guidance will become effective for us at the beginning of our first quarter of fiscal 2016. We do not expect the adoption of this guidance will have a material impact on our financial statements.
In July 2013, the FASB issued guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This guidance requires the unrecognized tax benefit to be presented in the financial statements as a reduction to a deferred tax asset. When a deferred tax asset is not available, or the asset is not intended to be used for this purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and not netted with a deferred tax asset. The guidance will become effective for us at the beginning of our first quarter of fiscal 2015. We do not expect the adoption of this guidance will have a material impact on our financial statements.
In March 2013, the FASB issued guidance on a parent's accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. This guidance requires a parent to release any related cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The guidance will become effective for us at the beginning of our first quarter of fiscal 2015. We do not expect the adoption of this guidance will have a material impact on our financial statements.
Summary of Significant Accounting Policies (Tables)
Schedule of Error Corrections and Prior Period Adjustments
In order to align prior period classifications with the current period presentation, the historical consolidated financial statements have been corrected, resulting in reclassifications of $25.4 million and $22.7 million for fiscal years 2013 and 2012, respectively. The consolidated statements of earnings as corrected are presented below (in millions):
 
Fiscal 2013
 
Fiscal 2012
 
Q1
 
Q2
 
Q3
 
Q4
 
Full Year
 
Full Year
Net revenues:
 
 
 
 
 
 
 
 
 
 
 
Company-operated stores
$
2,989.6

 
$
2,807.7

 
$
2,986.3

 
$
3,009.6

 
$
11,793.2

 
$
10,534.5

Licensed stores
350.2

 
322.1

 
342.0

 
346.3

 
1,360.5

 
1,210.3

CPG, foodservice and other
453.4

 
419.8

 
407.0

 
432.9

 
1,713.1

 
1,532.0

Total net revenues
3,793.2

 
3,549.6

 
3,735.3

 
3,788.8

 
14,866.8

 
13,276.8

Cost of sales including occupancy costs
1,620.7

 
1,530.4

 
1,597.6

 
1,633.7

 
6,382.3

 
5,813.3

Store operating expenses
1,089.5

 
1,038.4

 
1,084.1

 
1,073.9

 
4,286.1

 
3,918.1

Other operating expenses
126.1

 
105.8

 
98.9

 
101.1

 
431.8

 
407.2

Depreciation and amortization expenses
148.9

 
153.1

 
153.3

 
166.1

 
621.4

 
550.3

General and administrative expenses
231.9

 
230.3

 
249.6

 
226.1

 
937.9

 
801.2

Litigation charge
—

 
—

 
—

 
2,784.1

 
2,784.1

 
—

Total operating expenses
3,217.1

 
3,058.0

 
3,183.5

 
5,985.0

 
15,443.6

 
11,490.1

Income from equity investees
54.5

 
52.5

 
63.4

 
81.0

 
251.4

 
210.7

Operating income/(loss)
630.6

 
544.1

 
615.2

 
(2,115.2
)
 
(325.4
)
 
1,997.4

Interest income and other, net
(2.9
)
 
50.8

 
3.5

 
72.1

 
123.6

 
94.4

Interest expense
(6.6
)
 
(6.1
)
 
(6.3
)
 
(9.1
)
 
(28.1
)
 
(32.7
)
Earnings/(loss) before income taxes
621.1

 
588.8

 
612.4

 
(2,052.2
)
 
(229.9
)
 
2,059.1

Income tax expense/(benefit)
188.7

 
198.1

 
194.6

 
(820.1
)
 
(238.7
)
 
674.4

Net earnings/(loss) including noncontrolling interests
432.4

 
390.7

 
417.8

 
(1,232.1
)
 
8.8

 
1,384.7

Net earnings/(loss) attributable to noncontrolling interests
0.2

 
0.3

 
—

 
(0.1
)
 
0.5

 
0.9

Net earnings/(loss) attributable to Starbucks
$
432.2

 
$
390.4

 
$
417.8

 
$
(1,232.0
)
 
$
8.3

 
$
1,383.8

Acquisitions and Divestitures (Tables)
Allocation of Purchase Price to Fair Values of Assets Acquired and Liabilities Assumed 
The following table summarizes the allocation of the purchase price to the fair values of the assets acquired and liabilities assumed on the closing date (in millions):
 
 
Fair Value at
 Dec 31, 2012
Cash and cash equivalents
 
$
47.0

Inventories
 
21.3

Property, plant and equipment
 
59.7

Intangible assets
 
120.8

Goodwill
 
467.5

Other current and noncurrent assets
 
19.8

Current liabilities
 
(36.0
)
Long-term deferred tax liability
 
(54.3
)
Long-term debt
 
(35.2
)
Other long-term liabilities
 
(7.0
)
Total purchase price
 
$
603.6

Allocation of Purchase Price to Fair Values of Assets Acquired and Liabilities Assumed 
The following table summarizes the allocation of the purchase price to the fair values of the assets acquired and liabilities assumed on the closing date (in millions):
 
 
Fair Value at
 July 3, 2012
Property, plant and equipment
 
$
18.1

Intangible assets
 
24.3

Goodwill
 
58.7

Other current and noncurrent assets
 
5.1

Current liabilities
 
(6.4
)
Total cash paid
 
$
99.8

Derivative Financial Instruments (Tables)
Gains and Losses on Derivative Contracts Designated as Hedging Instruments Included in AOCI and Expected to be Reclassified into Earnings Within 12 months, Net of Tax 
Gains and losses on derivative contracts designated as hedging instruments included in AOCI and expected to be reclassified into earnings within 12 months, net of tax (in millions):
 
Net Gains/(Losses)
Included in AOCI
 
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months
 
Contract Remaining Maturity
(Months)
 
Sep 28,
2014
 
Sep 29,
2013
 
 
Cash Flow Hedges:
 
 
 
 
 
 
 
Interest rates
$
36.4

 
$
41.4

 
$
3.3

 
 
Foreign currency
10.6

 
(0.3
)
 
7.0

 
34
Coffee
(0.7
)
 
(12.2
)
 
(1.3
)
 
14
Net Investment Hedges:
 
 
 
 
 
 
 
Foreign currency
3.2

 
(12.9
)
 
1.8

 
36
Gains and Losses on Derivative Contracts Designated as Hedging Instruments Included in AOCI and Expected to be Reclassified into Earnings Within 12 months, Net of Tax 
Gains and losses on derivative contracts designated as hedging instruments included in AOCI and expected to be reclassified into earnings within 12 months, net of tax (in millions):
 
Net Gains/(Losses)
Included in AOCI
 
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months
 
Contract Remaining Maturity
(Months)
 
Sep 28,
2014
 
Sep 29,
2013
 
 
Cash Flow Hedges:
 
 
 
 
 
 
 
Interest rates
$
36.4

 
$
41.4

 
$
3.3

 
 
Foreign currency
10.6

 
(0.3
)
 
7.0

 
34
Coffee
(0.7
)
 
(12.2
)
 
(1.3
)
 
14
Net Investment Hedges:
 
 
 
 
 
 
 
Foreign currency
3.2

 
(12.9
)
 
1.8

 
36
Pretax Gains and Losses on Derivative Contracts Designated as Hedging Instruments Recognized in OCI and Reclassifications from AOCI to Earnings 
Pretax gains and losses on derivative contracts designated as hedging instruments recognized in other comprehensive income ("OCI") and reclassifications from AOCI to earnings (in millions):
 
Year Ended
 
Gains/(Losses) Recognized in
OCI Before Reclassifications
 
Gains/(Losses) Reclassified from AOCI to Earnings
 
Sep 28,
2014
 
Sep 29,
2013
 
Sep 28,
2014
 
Sep 29,
2013
Cash Flow Hedges:
 
 
 
 
 
 
 
Interest rates
$
0.5

 
$
66.2

 
$
5.0

 
$
0.5

Foreign currency
24.0

 
7.4

 
8.0

 
3.5

Coffee
(0.4
)
 
(26.5
)
 
(13.1
)
 
(49.4
)
Net Investment Hedges:
 
 
 
 
 
 
 
Foreign currency
25.5

 
32.8

 
—

 
—

Pretax Gains and Losses on Derivative Contracts Not Designated as Hedging Instruments Recognized in Earnings 
Pretax gains and losses on derivative contracts not designated as hedging instruments recognized in earnings (in millions):
 
Gains/(Losses) Recognized in Earnings
 
Sep 28, 2014
 
Sep 29, 2013
Foreign currency
$
1.7

 
$
(1.8
)
Coffee
—

 
(2.1
)
Dairy
12.6

 
(4.7
)
Diesel fuel
(1.0
)
 
0.3

Notional Amounts of Outstanding Derivative Contracts 
Notional amounts of outstanding derivative contracts (in millions):
 
Sep 28, 2014
 
Sep 29, 2013
Foreign currency
$
542

 
$
452

Coffee
45

 
—

Dairy
24

 
38

Diesel fuel
17

 
17

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
Sep 28, 2014
 
Quoted Prices
in Active
Markets for 
Identical Assets
(Level 1)
 
Significant 
Other Observable 
Inputs
(Level 2)
 
Significant
Unobservable  Inputs
(Level 3)
Assets:
 
 
 
 
 
 
 
Cash and cash equivalents
$
1,708.4

 
$
1,708.4

 
$
—

 
$
—

Short-term investments:
 
 
 
 
 
 
 
Available-for-sale securities
 
 
 
 
 
 
 
Corporate debt securities
4.9

 
—

 
4.9

 
—

Foreign government obligations
33.7

 
—

 
33.7

 
—

US government treasury securities
10.9

 
10.9

 
—

 
—

State and local government obligations
12.7

 
—

 
12.7

 
—

Certificates of deposit
1.0

 
—

 
1.0

 
—

Total available-for-sale securities
63.2

 
10.9

 
52.3

 
—

Trading securities
72.2

 
72.2

 
—

 
—

Total short-term investments
135.4

 
83.1

 
52.3

 
—

Prepaid expenses and other current assets:
 
 
 
 
 
 
 
Derivative assets
28.7

 
0.9

 
27.8

 
—

Long-term investments:
 
 
 
 
 
 
 
Available-for-sale securities
 
 
 
 
 
 
 
Agency obligations
8.9

 
—

 
8.9

 
—

Corporate debt securities
130.9

 
—

 
130.9

 
—

Auction rate securities
13.8

 
—

 
—

 
13.8

Foreign government obligations
17.4

 
—

 
17.4

 
—

US government treasury securities
94.8

 
94.8

 
—

 
—

State and local government obligations
6.7

 
—

 
6.7

 
—

Mortgage and asset-backed securities
45.9

 
—

 
45.9

 
—

Total long-term investments
318.4

 
94.8

 
209.8

 
13.8

Other assets:
 
 
 
 
 
 
 
Derivative assets
18.0

 
—

 
18.0

 
—

Total
$
2,208.9

 
$
1,887.2

 
$
307.9

 
$
13.8

Liabilities:
 
 
 
 
 
 
 
Accrued liabilities:
 
 
 
 
 
 
 
Derivative liabilities
$
2.4

 
$
0.4

 
$
2.0

 
$
—

 
 
 
 
Fair Value Measurements at Reporting Date Using
 
Balance at
Sep 29, 2013
 
Quoted Prices
in Active
Markets for 
Identical Assets
(Level 1)
 
Significant 
Other Observable 
Inputs
(Level 2)
 
Significant
Unobservable  Inputs
(Level 3)
Assets:
 
 
 
 
 
 
 
Cash and cash equivalents
$
2,575.7

 
$
2,575.7

 
$
—

 
$
—

Short-term investments:
 
 
 
 
 
 
 
Available-for-sale securities
 
 
 
 
 
 
 
Agency obligations
20.0

 
—

 
20.0

 
—

Commercial paper
127.0

 
—

 
127.0

 
—

Corporate debt securities
57.5

 
—

 
57.5

 
—

US government treasury securities
352.9

 
352.9

 
—

 
—

Certificates of deposit
34.1

 
—

 
34.1

 
—

Total available-for-sale securities
591.5

 
352.9

 
238.6

 
—

Trading securities
66.6

 
66.6

 
—

 
—

Total short-term investments
658.1

 
419.5

 
238.6

 
—

Prepaid expenses and other current assets:
 
 
 
 
 
 
 
Derivative assets
12.5

 
—

 
12.5

 
—

Long-term investments:
 
 
 
 
 
 
 
Available-for-sale securities
 
 
 
 
 
 
 
Agency obligations
8.1

 
—

 
8.1

 
—

Corporate debt securities
36.8

 
—

 
36.8

 
—

Auction rate securities
13.4

 
—

 
—

 
13.4

Total long-term investments
58.3

 
—

 
44.9

 
13.4

Other assets:
 
 
 
 
 
 
 
Derivative assets
11.4

 
—

 
11.4

 
—

Total
$
3,316.0

 
$
2,995.2

 
$
307.4

 
$
13.4

Liabilities:
 
 
 
 
 
 
 
Accrued liabilities:
 
 
 
 
 
 
 
Derivative liabilities
$
3.5

 
$
—

 
$
3.5

 
$
—

Other long-term liabilities:
 
 
 
 
 
 
 
Derivative liabilities
0.5

 
—

 
0.5

 
—

Total
$
4.0

 
$
—

 
$
4.0

 
$
—

Inventories (Tables)
Components of Inventories
Inventories (in millions)
 
Sep 28, 2014
 
Sep 29, 2013
Coffee:
 
 
 
Unroasted
$
432.3

 
$
493.0

Roasted
238.9

 
235.4

Other merchandise held for sale
265.7

 
243.3

Packaging and other supplies
154.0

 
139.5

Total
$
1,090.9

 
$
1,111.2

Equity and Cost Investments (Tables)
Schedule of Equity and Cost Method Investments 
Equity and Cost Investments (in millions)
 
Sep 28,
2014
 
Sep 29,
2013
Equity method investments
$
469.3

 
$
450.9

Cost method investments
45.6

 
45.6

Total
$
514.9

 
$
496.5

Summarized Combined Financial Information of Equity Method Investees 
Summarized combined financial information of our equity method investees, which represent 100% of the investees’ financial information (in millions):
Financial Position as of
Sep 28,
2014
 
Sep 29,
2013
Current assets
$
701.3

 
$
675.8

Noncurrent assets
873.9

 
783.3

Current liabilities
615.6

 
466.6

Noncurrent liabilities
79.1

 
148.9


 
Results of Operations for Fiscal Year Ended
Sep 28,
2014
 
Sep 29,
2013
 
Sep 30,
2012
Net revenues
$
3,461.3

 
$
3,018.7

 
$
2,796.7

Operating income
467.7

 
434.8

 
353.5

Net earnings
382.6

 
358.0

 
286.7

Supplemental Balance Sheet Information (Tables)
Property, Plant and Equipment, net 
Property, Plant and Equipment, net
 
Sep 28, 2014
 
Sep 29, 2013
Land
$
46.7

 
$
47.0

Buildings
278.1

 
259.6

Leasehold improvements
4,858.4

 
4,431.6

Store equipment
1,493.3

 
1,353.9

Roasting equipment
410.9

 
397.9

Furniture, fixtures and other
1,078.1

 
949.7

Work in progress
415.6

 
342.4

Property, plant and equipment, gross
8,581.1

 
7,782.1

Accumulated depreciation
(5,062.1
)
 
(4,581.6
)
Property, plant and equipment, net
$
3,519.0

 
$
3,200.5

Accrued Liabilities 
Accrued Liabilities
 
Sep 28, 2014
 
Sep 29, 2013
Accrued compensation and related costs
$
437.9

 
$
420.2

Accrued occupancy costs
119.8

 
120.7

Accrued taxes
272.0

 
125.0

Accrued dividend payable
239.8

 
195.8

Other
444.9

 
407.6

Total accrued liabilities
$
1,514.4

 
$
1,269.3

Other Intangible Assets and Goodwill (Tables)
Indefinite-Lived Intangible Assets 
Indefinite-Lived Intangible Assets
(in millions)
Sep 28, 2014
 
Sep 29, 2013
Trade names, trademarks and patents
$
197.5

 
$
190.5

Other indefinite-lived intangible assets
15.1

 
15.1

Total indefinite-lived intangible assets
$
212.6

 
$
205.6

Changes In Carrying Amount Of Goodwill By Reportable Operating Segment 
Goodwill
Changes in the carrying amount of goodwill by reportable operating segment (in millions):
 
Americas
 
EMEA
 
China /
Asia Pacific
 
Channel
Development
 
All Other Segments
 
Total
Balance at September 30, 2012
 
 
 
 
 
 
 
 
 
 
 
Goodwill prior to impairment
$
235.9

 
$
60.0

 
$
75.3

 
$
23.8

 
$
12.7

 
$
407.7

Accumulated impairment charges
(8.6
)
 
—

 
—

 
—

 
—

 
(8.6
)
Goodwill
$
227.3

 
$
60.0

 
$
75.3

 
$
23.8

 
$
12.7

 
$
399.1

Acquisitions/(divestitures)
(3.7
)
 
—

 
—

 
—

 
467.5

 
463.8

Other(1)
(2.0
)
 
2.2

 
(0.2
)
 
—

 
—

 
—

Balance at September 29, 2013

 
 
 
 
 
 
 
 
 
 
Goodwill prior to impairment
$
230.2

 
$
62.2

 
$
75.1

 
$
23.8

 
$
480.2

 
$
871.5

Accumulated impairment charges
(8.6
)
 
—

 
—

 
—

 
—

 
(8.6
)
Goodwill
$
221.6

 
$
62.2

 
$
75.1

 
$
23.8

 
$
480.2

 
$
862.9

Impairment
—

 
—

 
—

 
—

 
(0.8
)
 
(0.8
)
Other(1)
(2.6
)
 
(3.1
)
 
(0.2
)
 
—

 
—

 
(5.9
)
Balance at September 28, 2014
 
 
 
 
 
 
 
 
 
 
 
Goodwill prior to impairment
$
227.6

 
$
59.1

 
$
74.9

 
$
23.8

 
$
480.2

 
$
865.6

Accumulated impairment charges
(8.6
)
 
—

 
—

 
—

 
(0.8
)
 
(9.4
)
Goodwill
$
219.0

 
$
59.1

 
$
74.9

 
$
23.8

 
$
479.4

 
$
856.2

(1) 
Other is primarily comprised of changes in the goodwill balance as a result of foreign exchange fluctuations.
Definite-Lived Intangible Assets 
Definite-Lived Intangible Assets
 
Sep 28, 2014
 
Sep 29, 2013
(in millions)
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
Acquired rights
$
36.8

 
$
(10.1
)
 
$
26.7

 
$
38.8

 
$
(7.1
)
 
$
31.7

Acquired trade secrets and processes
27.6

 
(5.4
)
 
22.2

 
27.6

 
(2.7
)
 
24.9

Trade names, trademarks and patents
21.6

 
(11.6
)
 
10.0

 
19.5

 
(9.8
)
 
9.7

Other definite-lived intangible assets
3.8

 
(1.8
)
 
2.0

 
3.8

 
(0.9
)
 
2.9

Total definite-lived intangible assets
$
89.8

 
$
(28.9
)
 
$
60.9

 
$
89.7

 
$
(20.5
)
 
$
69.2

Estimated Future Amortization Expense 
Estimated future amortization expense as of September 28, 2014 (in millions):
Fiscal Year Ending
 
2015
$
9.3

2016
8.7

2017
8.4

2018
6.8

2019
6.5

Thereafter
21.2

Total estimated future amortization expense
$
60.9

Debt (Tables)
Components of Long-Term Debt Including Associated Interest Rates and Related Fair Values
Components of long-term debt including the associated interest rates and related fair values (in millions, except interest rates):
 
Sep 28, 2014
 
Sep 29, 2013
 
Stated Interest Rate
Effective Interest Rate (1)
Issuance
Face Value
Estimated Fair Value
 
Face Value
Estimated Fair Value
 
2016 notes
$
400.0

$
400

 
$
—

$
—

 
0.875
%
0.941
%
2017 notes
550.0

625

 
550.0

644

 
6.250
%
6.292
%
2018 notes
350.0

353

 
—

—

 
2.000
%
2.012
%
2023 notes
750.0

786

 
750.0

762

 
3.850
%
2.860
%
   Total
2,050.0

2,164

 
1,300.0

1,406

 
 
 
Aggregate unamortized discount
1.7

 
 
0.6

 
 
 
 
   Total
$
2,048.3

 
 
$
1,299.4

 
 
 
 
(1)
Includes the effects of the amortization of any premium or discount and any gain or loss upon settlement of related treasury locks or forward-starting interest rate swaps utilized to hedge the interest rate risk prior to the debt issuance.
Leases (Tables)
Rent Expense Under Operating Lease Agreements 
Rent expense under operating lease agreements (in millions):
Fiscal Year Ended
Sep 28, 2014
 
Sep 29, 2013
 
Sep 30, 2012
Minimum rent
$
907.4

 
$
838.3

 
$
759.0

Contingent rent
66.8

 
56.4

 
44.7

Total
$
974.2

 
$
894.7

 
$
803.7

Minimum Future Rental Payments Under Non-Cancelable Operating Leases 
Minimum future rental payments under non-cancelable operating leases as of September 28, 2014 (in millions):
Fiscal Year Ending
 
2015
$
925.6

2016
826.6

2017
696.3

2018
556.3

2019
450.8

Thereafter
1,502.3

Total minimum lease payments
$
4,957.9

Equity (Tables)
Dividends Declared 
During fiscal years 2014 and 2013, our Board of Directors declared the following dividends (in millions, except per share amounts):
 
Dividend Per Share
 
Record date
 
Total Amount
 
Payment Date
Fiscal Year 2014:
 
 
 
 
 
 
 
First quarter
$0.26
 
February 6, 2014
 
$196.4
 
February 21, 2014
Second quarter
$0.26
 
May 8, 2014
 
$195.5
 
May 23, 2014
Third quarter
$0.26
 
August 7, 2014
 
$195.3
 
August 22, 2014
Fourth quarter
$0.32
 
November 13, 2014
 
$239.8
 
November 28, 2014
Fiscal Year 2013:
 
 
 
 
 
 
 
First quarter
$0.21
 
February 7, 2013
 
$157.5
 
February 22, 2013
Second quarter
$0.21
 
May 9, 2013
 
$157.3
 
May 24, 2013
Third quarter
$0.21
 
August 8, 2013
 
$158.0
 
August 23, 2013
Fourth quarter
$0.26
 
November 14, 2013
 
$195.8
 
November 29, 2013
Changes in Components of Accumulated Other Comprehensive Income, Net of Tax 
Changes in accumulated other comprehensive income ("AOCI") by component, for the year ended September 28, 2014, net of tax:
(in millions)
 Available-for-Sale Securities
 
 Cash Flow Hedges
 
 Net Investment Hedges
 
Translation Adjustment
 
Total
Net gains/(losses) in AOCI at September 29, 2013
$
(0.5
)
 
$
26.8

 
$
(12.9
)
 
$
53.6

 
$
67.0

Net gains/(losses) recognized in OCI before reclassifications
1.0

 
16.3

 
16.1

 
(77.4
)
 
(44.0
)
Net (gains)/losses reclassified from AOCI to earnings
(0.9
)
 
3.2

 
—

 
—

 
2.3

Other comprehensive income/(loss)
0.1

 
19.5

 
16.1

 
(77.4
)
 
(41.7
)
Net gains/(losses) in AOCI at September 28, 2014
$
(0.4
)
 
$
46.3

 
$
3.2

 
$
(23.8
)
 
$
25.3

Impact of Reclassification from Accumulated Other Comprehensive Income on Earnings Related to Cash Flow Hedges 
Impact of reclassifications from AOCI on the consolidated statements of earnings related to cash flow hedges for the year ended September 28, 2014:
AOCI
Components
 
Amounts Reclassified
from AOCI
(in millions)
 
Affected Line Item in
the Statements of Earnings
Gains/(losses) on cash flow hedges
 
 
 
 
Interest rate hedges
 
$
5.0

 
Interest expense
Foreign currency hedges
 
5.1

 
Revenue
Foreign currency/coffee hedges
 
(10.0
)
 
Cost of sales including occupancy costs
 
 
0.1

 
Total before tax
 
 
(3.3
)
 
Tax (expense)/benefit
 
 
$
(3.2
)
 
Net of tax
Employee Stock and Benefit Plans (Tables)
Stock-Based Compensation Expense Recognized in the Consolidated Financial Statements 
Stock-based compensation expense recognized in the consolidated financial statements (in millions):
Fiscal Year Ended
Sep 28, 2014
 
Sep 29, 2013
 
Sep 30, 2012
Options
$
41.8

 
$
37.1

 
$
46.2

RSUs
141.4

 
105.2

 
107.4

Total stock-based compensation expense recognized in the consolidated statements of earnings
$
183.2

 
$
142.3

 
$
153.6

Total related tax benefit
$
63.4

 
$
49.8

 
$
54.2

Total capitalized stock-based compensation included in net property, plant and equipment and inventories on the consolidated balance sheets
$
1.9

 
$
1.8

 
$
2.0

Employee Stock Options Granted During the Period, Valuation Assumptions 
The fair value of stock option awards was estimated at the grant date with the following weighted average assumptions for fiscal years 2014, 2013, and 2012:
 
Employee Stock Options
Granted During the Period
Fiscal Year Ended
2014
 
2013
 
2012
Expected term (in years)
4.5

 
4.8

 
4.8

Expected stock price volatility
26.8
%
 
34.0
%
 
38.2
%
Risk-free interest rate
1.1
%
 
0.7
%
 
1.0
%
Expected dividend yield
1.3
%
 
1.6
%
 
1.5
%
Weighted average grant price
$
80.23

 
$
51.23

 
$
44.26

Estimated fair value per option granted
$
16.72

 
$
12.88

 
$
12.79

Stock Option Transactions 
Stock option transactions for the year ended September 28, 2014 (in millions, except per share and contractual life amounts):
 
Shares
Subject to
Options
 
Weighted
Average
Exercise
Price
per Share
 
Weighted
Average
Remaining
Contractual
Life (Years)
 
Aggregate
Intrinsic
Value
Outstanding, September 29, 2013
22.0

 
$
29.11

 
6.0
 
$
1,060

Granted
3.1

 
80.23

 
 
 
 
Exercised
(4.8
)
 
24.27

 
 
 
 
Expired/forfeited
(0.5
)
 
51.80

 
 
 
 
Outstanding, September 28, 2014
19.8

 
37.86

 
5.8
 
754

Exercisable, September 28, 2014
12.7

 
25.32

 
4.4
 
631

Vested and expected to vest, September 28, 2014
19.2

 
36.89

 
5.7
 
747

RSU Transactions 
RSU transactions for the year ended September 28, 2014 (in millions, except per share and contractual life amounts):
 
Number
of
Shares
 
Weighted
Average
Grant Date
Fair Value
per Share
 
Weighted
Average
Remaining
Contractual
Life (Years)
 
Aggregate
Intrinsic
Value
Nonvested, September 29, 2013
5.8

 
$
44.08

 
0.9
 
$
452

Granted
2.9

 
80.13

 
 
 
 
Vested
(2.6
)
 
40.08

 
 
 
 
Forfeited/canceled
(0.7
)
 
65.59

 
 
 
 
Nonvested, September 28, 2014
5.4

 
62.34

 
1.0
 
407

Income Taxes (Tables)
Components of Earnings/(Loss) Before Income Taxes 
Components of earnings/(loss) before income taxes (in millions):
Fiscal Year Ended
Sep 28, 2014
 
Sep 29, 2013
 
Sep 30, 2012
 
 
Total
Litigation charge
All Other
 
United States
$
2,572.4

 
$
(674.0
)
$
(2,784.1
)
$
2,110.1

 
$
1,679.6

Foreign
587.3

 
444.1

—

444.1

 
379.5

Total earnings/(loss) before income taxes
$
3,159.7

 
$
(229.9
)
$
(2,784.1
)
$
2,554.2

 
$
2,059.1

Provision/(Benefit) for Income Taxes 
Provision/(benefit) for income taxes (in millions):
Fiscal Year Ended
Sep 28, 2014
 
Sep 29, 2013
 
Sep 30, 2012
 
 
Total
Litigation charge
All Other
 
Current taxes:
 
 
 
 
 
 
 
US federal
$
822.7

 
$
616.6

$
—

$
616.6

 
$
466.0

US state and local
132.9

 
93.8

—

93.8

 
79.9

Foreign
128.8

 
95.9

—

95.9

 
76.8

Total current taxes
1,084.4

 
806.3

—

806.3

 
622.7

Deferred taxes:
 
 
 
 
 
 
 
US federal
12.0

 
(898.8
)
(922.3
)
23.5

 
49.2

US state and local
(4.9
)
 
(144.0
)
(148.7
)
4.7

 
(0.7
)
Foreign
0.5

 
(2.2
)
—

(2.2
)
 
3.2

Total deferred taxes
7.6

 
(1,045.0
)
(1,071.0
)
26.0

 
51.7

Total income tax expense/(benefit)
$
1,092.0

 
$
(238.7
)
$
(1,071.0
)
$
832.3

 
$
674.4

Reconciliation of the Statutory US Federal Income Tax Rate With Our Effective Income Tax Rate 
Reconciliation of the statutory US federal income tax rate with our effective income tax rate:
Fiscal Year Ended
Sep 28, 2014
 
Sep 29, 2013
 
Sep 30, 2012
 
 
Total
Litigation charge
All Other
 
Statutory rate
35.0
 %
 
35.0
%
35.0
%
35.0
 %
 
35.0
 %
State income taxes, net of federal tax benefit
2.6

 
15.8

3.5

2.4

 
2.5

Benefits and taxes related to foreign operations
(1.9
)
 
37.5

—

(3.4
)
 
(3.3
)
Domestic production activity deduction
(0.7
)
 
8.1

—

(0.7
)
 
(0.7
)
Domestic tax credits
(0.2
)
 
2.8

—

(0.3
)
 
(0.3
)
Charitable contributions
(0.4
)
 
3.9

—

(0.3
)
 
(0.5
)
Other, net
0.2

 
0.7

—

(0.1
)
 
0.1

Effective tax rate
34.6
 %
 
103.8
%
38.5
%
32.6
 %
 
32.8
 %
Tax Effect of Temporary Differences and Carryforwards that Comprise Significant Portions of Deferred Tax Assets and Liabilities 
Tax effect of temporary differences and carryforwards that comprise significant portions of deferred tax assets and liabilities (in millions):
 
Sep 28, 2014
 
Sep 29, 2013
Deferred tax assets:
 
 
 
Property, plant and equipment
$
78.5

 
$
64.9

Accrued occupancy costs
58.8

 
69.0

Accrued compensation and related costs
75.3

 
77.6

Other accrued liabilities
27.6

 
22.0

Asset retirement obligation asset
18.6

 
21.0

Deferred revenue
63.4

 
49.9

Asset impairments
49.5

 
33.3

Tax credits
20.3

 
19.1

Stock-based compensation
131.5

 
120.9

Net operating losses
104.4

 
99.0

Litigation charge
1,002.0

 
1,071.9

Other
77.0

 
62.7

Total
$
1,706.9

 
$
1,711.3

Valuation allowance
(166.8
)
 
(160.5
)
Total deferred tax asset, net of valuation allowance
$
1,540.1

 
$
1,550.8

Deferred tax liabilities:
 
 
 
Property, plant and equipment
(148.2
)
 
(182.9
)
Intangible assets and goodwill
(92.9
)
 
(81.6
)
Other
(89.4
)
 
(53.1
)
Total
(330.5
)
 
(317.6
)
Net deferred tax asset
$
1,209.6

 
$
1,233.2

Reported as:
 
 
 
Current deferred income tax assets
$
317.4

 
$
277.3

Long-term deferred income tax assets
903.3

 
967.0

Current deferred income tax liabilities (included in Accrued liabilities)
(4.2
)
 
(1.0
)
Long-term deferred income tax liabilities (included in Other long-term liabilities)
(6.9
)
 
(10.1
)
Net deferred tax asset
$
1,209.6

 
$
1,233.2

Summary of Activity Related to Unrecognized Tax Benefits 
The following table summarizes the activity related to our unrecognized tax benefits (in millions):
 
Sep 28, 2014
 
Sep 29, 2013
 
Sep 30, 2012
Beginning balance
$
88.8

 
$
75.3

 
$
52.9

Increase related to prior year tax positions
1.4

 
8.9

 
8.8

Decrease related to prior year tax positions
(2.2
)
 
(9.3
)
 
—

Increase related to current year tax positions
26.7

 
19.3

 
20.0

Decrease related to current year tax positions
(1.9
)
 
(0.4
)
 
(1.1
)
Decreases related to settlements with taxing authorities
(0.1
)
 
—

 
(0.5
)
Decreases related to lapsing of statute of limitations
—

 
(5.0
)
 
(4.8
)
Ending balance
$
112.7

 
$
88.8

 
$
75.3

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):
Fiscal Year Ended
Sep 28, 2014
 
Sep 29, 2013
 
Sep 30, 2012
Net earnings attributable to Starbucks
$
2,068.1

 
$
8.3

 
$
1,383.8

Weighted average common shares and common stock units outstanding (for basic calculation)
753.1

 
749.3

 
754.4

Dilutive effect of outstanding common stock options and RSUs
10.0

 
13.0

 
18.6

Weighted average common and common equivalent shares outstanding (for diluted calculation)
763.1

 
762.3

 
773.0

EPS — basic
$
2.75

 
$
0.01

 
$
1.83

EPS — diluted
$
2.71

 
$
0.01

 
$
1.79

Segment Reporting (Tables)
Consolidated Revenue Mix by Product Type 
Consolidated revenue mix by product type (in millions):
Fiscal Year Ended
Sep 28, 2014
 
Sep 29, 2013
 
Sep 30, 2012
Beverage
$
9,458.4

 
58
%
 
$
8,674.7

 
58
%
 
$
7,883.8

 
59
%
Food
2,505.2

 
15
%
 
2,189.8

 
15
%
 
1,875.1

 
14
%
Packaged and single-serve coffees and teas
2,370.0

 
14
%
 
2,206.5

 
15
%
 
1,965.8

 
15
%
Other(1)
2,114.2

 
13
%
 
1,795.8

 
12
%
 
1,552.1

 
12
%
Total
$
16,447.8

 
100
%
 
$
14,866.8

 
100
%
 
$
13,276.8

 
100
%
(1) 
"Other" primarily includes royalty and licensing revenues, beverage-related ingredients, ready-to-drink beverages and serveware, among other items.
Net Revenues from External Customers by Geographic Area 
Fiscal Year Ended
Sep 28, 2014
 
Sep 29, 2013
 
Sep 30, 2012
Net revenues from external customers:
 
 
 
 
 
United States
$
12,590.6

 
$
11,389.6

 
$
10,154.8

Other countries
3,857.2

 
3,477.2

 
3,122.0

Total
$
16,447.8

 
$
14,866.8

 
$
13,276.8

Long-Lived Assets by Geographic Area 
Fiscal Year Ended
Sep 28, 2014
 
Sep 29, 2013
 
Sep 30, 2012
Long-lived assets:
 
 
 
 
 
United States
$
5,135.8

 
$
4,641.3

 
$
2,767.1

Other countries
1,448.4

 
1,404.0

 
1,252.5

Total
$
6,584.2

 
$
6,045.3

 
$
4,019.6

Financial Information for Reportable Operating Segments and All Other Segments 
The table below presents financial information for our reportable operating segments and All Other Segments for the years ended September 28, 2014, September 29, 2013, and September 30, 2012, including reclassifications resulting from the correction of the immaterial error discussed in Note 1, Summary of Significant Accounting Policies. The reclassifications for fiscal years 2013 and 2012 were $21.8 million and $19.2 million for the Channel Development segment, respectively, and $3.6 million and $3.5 million for All Other Segments, respectively.
(in millions)
Americas
 
EMEA
 
China /
Asia Pacific
 
Channel
Development
 
All Other Segments
 
Segment
Total
Fiscal 2014
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
$
11,980.5

 
$
1,294.8

 
$
1,129.6

 
$
1,546.0

 
$
496.9

 
$
16,447.8

Depreciation and amortization expenses
469.5

 
59.4

 
46.1

 
1.8

 
15.2

 
592.0

Income from equity investees
—

 
3.7

 
164.0

 
100.6

 
—

 
268.3

Operating income/(loss)
2,809.0

 
119.2

 
372.5

 
557.2

 
(26.8
)
 
3,831.1

Total assets
2,521.4

 
663.0

 
939.8

 
84.6

 
825.2

 
5,034.0

 
 
 
 
 
 
 
 
 
 
 
 
Fiscal 2013
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
$
11,000.8

 
$
1,160.0

 
$
917.0

 
$
1,398.9

 
$
390.1

 
$
14,866.8

Depreciation and amortization expenses
429.3

 
55.5

 
33.8

 
1.1

 
11.7

 
531.4

Income from equity investees
2.4

 
0.4

 
152.0

 
96.6

 
—

 
251.4

Operating income/(loss)
2,365.2

 
64.2

 
321.2

 
415.5

 
(34.5
)
 
3,131.6

Total assets
2,323.4

 
510.6

 
805.0

 
89.2

 
821.1

 
4,549.3

 
 
 
 
 
 
 
 
 
 
 
 
Fiscal 2012
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
$
9,936.0

 
$
1,141.3

 
$
721.4

 
$
1,273.0

 
$
205.1

 
$
13,276.8

Depreciation and amortization expenses
392.4

 
57.1

 
23.2

 
1.3

 
2.5

 
476.5

Income from equity investees
2.1

 
0.3

 
122.4

 
85.2

 
0.7

 
210.7

Operating income/(loss)
2,020.4

 
6.8

 
252.6

 
340.4

 
(27.4
)
 
2,592.8

Total assets
2,199.0

 
467.4

 
656.6

 
88.8

 
80.8

 
3,492.6

Reconciliation of Total Segment Operating Income to Consolidated Earnings/(Loss) Before Income Taxes 
The following table reconciles total segment operating income in the table above to consolidated earnings/(loss) before income taxes (in millions):
Fiscal Year Ended
Sep 28, 2014
 
Sep 29, 2013
 
Sep 30, 2012
Total segment operating income
$
3,831.1

 
$
3,131.6

 
$
2,592.8

Unallocated corporate operating expenses(1)
(750.0
)
 
(3,457.0
)
 
(595.4
)
Consolidated operating income/(loss)
3,081.1

 
(325.4
)
 
1,997.4

Interest income and other, net
142.7

 
123.6

 
94.4

Interest expense
(64.1
)
 
(28.1
)
 
(32.7
)
Earnings/(loss) before income taxes
$
3,159.7

 
$
(229.9
)
 
$
2,059.1

(1) Fiscal 2013 includes a pretax charge of $2,784.1 million resulting from the litigation charge we recorded associated with the conclusion of our arbitration with Kraft.
Selected Quarterly Financial Information (Tables)
Schedule of Selected Quarterly Financial Information
Selected Quarterly Financial Information (unaudited; in millions, except EPS)

 
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
 
Full
Year
Fiscal 2014:
 
 
 
 
 
 
 
 
 
Net revenues
$
4,239.6

 
$
3,873.8

 
$
4,153.7

 
$
4,180.8

 
$
16,447.8

Operating income
813.5

 
644.1

 
768.5

 
854.9

 
3,081.1

Net earnings attributable to Starbucks
540.7

 
427.0

 
512.6

 
587.9

 
2,068.1

EPS — diluted
0.71

 
0.56

 
0.67

 
0.77

 
2.71

Fiscal 2013:
 
 
 
 
 
 
 
 
 
Net revenues(1)
$
3,793.2

 
$
3,549.6

 
$
3,735.3

 
$
3,788.8

 
$
14,866.8

Operating income/(loss)(2)
630.6

 
544.1

 
615.2

 
(2,115.2
)
 
(325.4
)
Net earnings/(loss) attributable to Starbucks(2)
432.2

 
390.4

 
417.8

 
(1,232.0
)
 
8.3

EPS — diluted(2)
0.57

 
0.51

 
0.55

 
(1.64
)
 
0.01

(1) 
Includes the reclassifications resulting from the correction of the immaterial error discussed in Note 1, Summary of Significant Accounting Policies. We reclassified $6.4 million, $6.3 million, $6.4 million and $6.2 million for the first, second, third, and fourth quarters of fiscal year 2013, respectively, and $25.4 million for the full year of fiscal 2013.
(2) 
The fourth quarter of fiscal 2013 includes a pretax charge of $2,784.1 million resulting from the conclusion of the arbitration with Kraft.
Summary of Significant Accounting Policies (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Sep. 29, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 30, 2012
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Accounting Policies [Abstract]
 
 
 
 
 
 
 
Number of reportable segments
 
 
 
 
4 
 
 
Receivables, net of Allowance for Doubtful Accounts
 
 
 
 
 
 
 
Allowance for doubtful accounts
$ 5.7 
 
 
 
$ 6.7 
$ 5.7 
 
Inventories
 
 
 
 
 
 
 
Inventory reserves
52.0 
 
 
 
31.2 
52.0 
 
Property, Plant and Equipment [Line Items]
 
 
 
 
 
 
 
Net disposition charges on property, plant and equipment
 
 
 
 
14.7 
17.4 
16.5 
Net impairment charges on property, plant and equipment
 
 
 
 
19.0 
12.7 
15.2 
Other Intangible Assets
 
 
 
 
 
 
 
Other intangible asset impairment charges
 
 
 
 
0 
0 
0 
Revenue Recognition
 
 
 
 
 
 
 
Breakage income
 
 
 
 
38.3 
33.0 
65.8 
Marketing & Advertising
 
 
 
 
 
 
 
Marketing expenses
 
 
 
 
315.5 
306.8 
277.9 
Advertising expenses
 
 
 
 
198.9 
205.8 
182.4 
Asset Retirement Obligations
 
 
 
 
 
 
 
Net ARO assets included in property, plant and equipment
3.8 
 
 
 
4.1 
3.8 
 
Net ARO liabilities included in other long-term liabilities
27.7 
 
 
 
28.4 
27.7 
 
Correction of an Immaterial Error
 
 
 
 
 
 
 
Description of immaterial error correction
 
 
 
 
Effective at the beginning of fiscal 2014, we reclassified certain fees related to our US and Seattle's Best Coffee foodservice operations in our Channel Development segment and All Other Segments, respectively, from other operating expenses to foodservice revenues included in CPG, foodservice and other net revenues in our consolidated statements of earnings. This reclassification results from a correction of an error in our prior period financial statements which we have determined to be immaterial. 
 
 
Reclassification resulting from correction of an immaterial error
$ 6.2 
$ 6.4 
$ 6.3 
$ 6.4 
 
$ 25.4 
$ 22.7 
Leasehold improvements [Member]
 
 
 
 
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
 
 
 
 
Estimated useful life of property, plant and equipment, in years
 
 
 
 
10 years 
 
 
Maximum [Member]
 
 
 
 
 
 
 
Derivative [Line Items]
 
 
 
 
 
 
 
Derivative instruments maturity, in years
 
 
 
 
3 years 
 
 
Maximum [Member] |
Equipment [Member]
 
 
 
 
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
 
 
 
 
Estimated useful life of property, plant and equipment, in years
 
 
 
 
15 years 
 
 
Maximum [Member] |
Buildings [Member]
 
 
 
 
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
 
 
 
 
Estimated useful life of property, plant and equipment, in years
 
 
 
 
40 years 
 
 
Minimum [Member] |
Equipment [Member]
 
 
 
 
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
 
 
 
 
Estimated useful life of property, plant and equipment, in years
 
 
 
 
2 years 
 
 
Minimum [Member] |
Buildings [Member]
 
 
 
 
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
 
 
 
 
Estimated useful life of property, plant and equipment, in years
 
 
 
 
30 years 
 
 
Summary of Significant Accounting Policies (Schedule of Error Corrections and Prior Period Adjustments) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Sep. 28, 2014
Jun. 29, 2014
Mar. 30, 2014
Dec. 29, 2013
Sep. 29, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 30, 2012
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Total net revenues
$ 4,180.8 
$ 4,153.7 
$ 3,873.8 
$ 4,239.6 
$ 3,788.8 1
$ 3,735.3 1
$ 3,549.6 1
$ 3,793.2 1
$ 16,447.8 
$ 14,866.8 1
$ 13,276.8 
Cost of sales including occupancy costs
 
 
 
 
1,633.7 
1,597.6 
1,530.4 
1,620.7 
6,858.8 
6,382.3 
5,813.3 
Store operating expenses
 
 
 
 
1,073.9 
1,084.1 
1,038.4 
1,089.5 
4,638.2 
4,286.1 
3,918.1 
Other operating expenses
 
 
 
 
101.1 
98.9 
105.8 
126.1 
457.3 
431.8 
407.2 
Depreciation and amortization expenses
 
 
 
 
166.1 
153.3 
153.1 
148.9 
709.6 
621.4 
550.3 
General and administrative expenses
 
 
 
 
226.1 
249.6 
230.3 
231.9 
991.3 
937.9 
801.2 
Litigation charge
 
 
 
 
2,784.1 
0 
0 
0 
(20.2)
2,784.1 
0 
Total operating expenses
 
 
 
 
5,985.0 
3,183.5 
3,058.0 
3,217.1 
13,635.0 
15,443.6 
11,490.1 
Income from equity investees
 
 
 
 
81.0 
63.4 
52.5 
54.5 
268.3 
251.4 
210.7 
Operating income/(loss)
854.9 
768.5 
644.1 
813.5 
(2,115.2)2
615.2 
544.1 
630.6 
3,081.1 
(325.4)2
1,997.4 
Interest income and other, net
 
 
 
 
72.1 
3.5 
50.8 
(2.9)
142.7 
123.6 
94.4 
Interest expense
 
 
 
 
(9.1)
(6.3)
(6.1)
(6.6)
(64.1)
(28.1)
(32.7)
Earnings/(loss) before income taxes
 
 
 
 
(2,052.2)
612.4 
588.8 
621.1 
3,159.7 
(229.9)
2,059.1 
Income tax expense/(benefit)
 
 
 
 
(820.1)
194.6 
198.1 
188.7 
1,092.0 
(238.7)
674.4 
Net earnings/(loss) including noncontrolling interests
 
 
 
 
(1,232.1)
417.8 
390.7 
432.4 
2,067.7 
8.8 
1,384.7 
Net earnings/(loss) attributable to noncontrolling interests
 
 
 
 
(0.1)
0 
0.3 
0.2 
(0.4)
0.5 
0.9 
Net earnings/(loss) attributable to Starbucks
587.9 
512.6 
427.0 
540.7 
(1,232.0)2
417.8 
390.4 
432.2 
2,068.1 
8.3 2
1,383.8 
Company-operated stores [Member]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
3,009.6 
2,986.3 
2,807.7 
2,989.6 
12,977.9 
11,793.2 
10,534.5 
Licensed stores [Member]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
346.3 
342.0 
322.1 
350.2 
1,588.6 
1,360.5 
1,210.3 
CPG, foodservice and other [Member]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
$ 432.9 
$ 407.0 
$ 419.8 
$ 453.4 
$ 1,881.3 
$ 1,713.1 
$ 1,532.0 
Acquisitions and Divestitures (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended
Sep. 28, 2014
Australia Retail Operations [Member]
Sep. 29, 2013
Starbucks Chile [Member]
Jun. 30, 2013
Costa Rica Coffee Farm [Member]
Mar. 31, 2013
Teavana [Member]
Mar. 31, 2013
Teavana [Member]
Dec. 31, 2012
Teavana [Member]
Mar. 31, 2013
Teavana [Member]
Trade Names [Member]
Mar. 31, 2013
Teavana [Member]
Trade Secrets [Member]
Dec. 31, 2012
Teavana [Member]
Trade Secrets [Member]
Mar. 31, 2013
Teavana [Member]
Noncompete Agreements [Member]
Dec. 31, 2012
Teavana [Member]
Noncompete Agreements [Member]
Sep. 30, 2012
La Boulange [Member]
Jul. 3, 2012
La Boulange [Member]
Sep. 30, 2012
La Boulange [Member]
Trade Names [Member]
Sep. 30, 2012
La Boulange [Member]
Trade Secrets [Member]
Jul. 3, 2012
La Boulange [Member]
Trade Secrets [Member]
Jan. 1, 2012
Evolution Fresh Inc [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total proceeds from sale of Australia retail store assets and operations
$ 15.9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain/loss resulting from divestiture
2.4 
45.9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ownership interest in Starbucks Chile sold to joint venture partner
 
82.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase price of Chile joint venture sold
 
68.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ownership interest acquired
 
 
100.00% 
 
 
100.00% 
 
 
 
 
 
 
100.00% 
 
 
 
 
Cash paid for acquired entity
 
 
8.1 
615.8 
 
 
 
 
 
 
 
100.0 
 
 
 
 
30.0 
Acquisition date
 
 
 
Dec. 31, 2012 
 
 
 
 
 
 
 
Jul. 03, 2012 
 
 
 
 
Nov. 10, 2011 
Reason for acquisition
 
 
 
to elevate our tea offerings as well as expand our domestic and global tea footprint 
 
 
 
 
 
 
 
to elevate our core food offerings and build a premium, artisanal bakery brand 
 
 
 
 
 
Contingent consideration receivable
 
 
 
 
 
12.2 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt repaid at closing
 
 
 
 
 
35.2 
 
 
 
 
 
 
 
 
 
 
 
Indefinite-lived intangible assets acquired
 
 
 
 
 
 
105.5 
 
 
 
 
 
 
9.7 
 
 
 
Definite-lived intangible assets acquired
 
 
 
 
 
 
 
 
13.0 
 
2.3 
 
 
 
 
14.6 
 
Definite-lived intangible assets, life (years)
 
 
 
 
 
 
 
10 years 
 
3 years 
 
 
 
 
10 years 
 
 
Goodwill
 
 
 
 
$ 467.5 
 
 
 
 
 
 
$ 58.7 
 
 
 
 
$ 18.0 
Goodwill description
 
 
 
the intangible assets that do not qualify for separate recognition, primarily including Teavana's established global store presence in high traffic mall locations and other high-sales-volume retail venues, Teavana's global customer base, and Teavana's "Heaven of tea" retail experience in which store employees engage and educate customers about the ritual and enjoyment of tea 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisitions and Divestitures (Allocation of Purchase Price to Fair Value of Assets Acquired and Liabilities Assumed) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 3 Months Ended
Mar. 31, 2013
Teavana [Member]
Dec. 31, 2012
Teavana [Member]
Sep. 30, 2012
La Boulange [Member]
Jul. 3, 2012
La Boulange [Member]
Cash and cash equivalents
 
$ 47.0 
 
 
Inventories
 
21.3 
 
 
Property, plant and equipment
 
59.7 
 
18.1 
Intangible assets
 
120.8 
 
24.3 
Goodwill
467.5 
 
58.7 
 
Other current and noncurrent assets
 
19.8 
 
5.1 
Current liabilities
 
(36.0)
 
(6.4)
Long-term deferred tax liability
 
(54.3)
 
 
Long-term debt
 
(35.2)
 
 
Other long-term liabilities
 
(7.0)
 
 
Total purchase price
$ 603.6 
 
$ 99.8 
 
Derivative Financial Instruments (Gains and Losses on Derivative Contracts Designated as Hedging Instruments Included in AOCI and Expected to be Reclassified into Earnings Within 12 months, Net of Tax) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 28, 2014
Sep. 29, 2013
Cash Flow Hedging [Member] |
Interest Rate Contracts [Member]
 
 
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
Net Gains/(Losses) Included in AOCI
$ 36.4 
$ 41.4 
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months
3.3 
 
Cash Flow Hedging [Member] |
Foreign Exchange Contracts [Member]
 
 
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
Net Gains/(Losses) Included in AOCI
10.6 
(0.3)
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months
7.0 
 
Contract Remaining Maturity (Months)
34 months 
 
Cash Flow Hedging [Member] |
Coffee Contracts [Member]
 
 
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
Net Gains/(Losses) Included in AOCI
(0.7)
(12.2)
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months
(1.3)
 
Contract Remaining Maturity (Months)
14 months 
 
Net Investment Hedging [Member] |
Foreign Exchange Contracts [Member]
 
 
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
Net Gains/(Losses) Included in AOCI
3.2 
(12.9)
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 months
$ 1.8 
 
Contract Remaining Maturity (Months)
36 months 
 
Derivative Financial Instruments (Pretax Gains and Losses on Derivative Contracts Designated as Hedging Instruments Recognized in OCI and Reclassifications from AOCI to Earnings) (Details) (Designated as Hedging Instrument [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 28, 2014
Sep. 29, 2013
Cash Flow Hedging [Member] |
Interest Rate Contracts [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Gain/(Loss) Recognized in OCI Before Reclassifications
$ 0.5 
$ 66.2 
Gains/(Losses) Reclassified from AOCI to Earnings
5.0 
0.5 
Cash Flow Hedging [Member] |
Foreign Exchange Contracts [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Gain/(Loss) Recognized in OCI Before Reclassifications
24.0 
7.4 
Gains/(Losses) Reclassified from AOCI to Earnings
8.0 
3.5 
Cash Flow Hedging [Member] |
Coffee Contracts [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Gain/(Loss) Recognized in OCI Before Reclassifications
(0.4)
(26.5)
Gains/(Losses) Reclassified from AOCI to Earnings
(13.1)
(49.4)
Net Investment Hedging [Member] |
Foreign Exchange Contracts [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Gain/(Loss) Recognized in OCI Before Reclassifications
25.5 
32.8 
Gains/(Losses) Reclassified from AOCI to Earnings
$ 0 
$ 0 
Derivative Financial Instruments (Pretax Gains and Losses on Derivative Contracts Not Designated as Hedging Instruments Recognized in Earnings) (Details) (Not Designated as Hedging Instrument [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 28, 2014
Sep. 29, 2013
Foreign Exchange Contracts [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Gains/(Losses) Recognized in Earnings
$ 1.7 
$ (1.8)
Coffee Contracts [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Gains/(Losses) Recognized in Earnings
0 
(2.1)
Dairy Contracts [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Gains/(Losses) Recognized in Earnings
12.6 
(4.7)
Diesel Contracts [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Gains/(Losses) Recognized in Earnings
$ (1.0)
$ 0.3 
Derivative Financial Instruments (Notional Amounts of Outstanding Derivative Contracts) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 28, 2014
Sep. 29, 2013
Foreign Exchange Contracts [Member]
 
 
Derivative [Line Items]
 
 
Notional amounts of outstanding derivative contracts
$ 542 
$ 452 
Coffee Contracts [Member]
 
 
Derivative [Line Items]
 
 
Notional amounts of outstanding derivative contracts
45 
0 
Dairy Contracts [Member]
 
 
Derivative [Line Items]
 
 
Notional amounts of outstanding derivative contracts
24 
38 
Diesel Contracts [Member]
 
 
Derivative [Line Items]
 
 
Notional amounts of outstanding derivative contracts
$ 17 
$ 17 
Fair Value Measurements (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Available-for-sale Securities [Abstract]
 
 
 
Proceeds from sale of available-for-sale securities
$ 1,454.8 
$ 60.2 
$ 0 
Trading Securities [Abstract]
 
 
 
Management Deferred Compensation Plan liability
106.4 
101.6 
 
Trading securities, change in net unrealized holding gain (loss)
$ 1.2 
$ 11.7 
$ 10.9 
Maximum [Member]
 
 
 
Available-for-sale Securities [Abstract]
 
 
 
Long-term investments, contractual maturity period
7 years 
 
 
Auction Rate Securities [Member] |
Minimum [Member]
 
 
 
Available-for-sale Securities [Abstract]
 
 
 
Long-term investments, contractual maturity period
16 years 
 
 
Auction Rate Securities [Member] |
Maximum [Member]
 
 
 
Available-for-sale Securities [Abstract]
 
 
 
Long-term investments, contractual maturity period
29 years 
 
 
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 28, 2014
Sep. 29, 2013
Assets [Abstract]
 
 
Total short-term investments
$ 135.4 
$ 658.1 
Long-term investments: Available-for-sale securities
318.4 
58.3 
Total
2,208.9 
3,316.0 
Liabilities [Abstract]
 
 
Total
 
4.0 
Cash and Cash Equivalents [Member]
 
 
Assets [Abstract]
 
 
Cash and cash equivalents
1,708.4 
2,575.7 
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
63.2 
591.5 
Short-term investments: Trading securities
72.2 
66.6 
Total short-term investments
135.4 
658.1 
Prepaid Expenses and Other Current Assets [Member]
 
 
Assets [Abstract]
 
 
Prepaid expenses and other current assets: Derivative assets
28.7 
12.5 
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
318.4 
58.3 
Other Assets [Member]
 
 
Assets [Abstract]
 
 
Other Assets: Derivative assets
18.0 
11.4 
Accrued Liabilities [Member]
 
 
Liabilities [Abstract]
 
 
Accrued liabilities: Derivative liabilities
2.4 
3.5 
Other Long-term Liabilities [Member]
 
 
Liabilities [Abstract]
 
 
Other long-term liabilities: Derivative liabilities
 
0.5 
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member]
 
 
Assets [Abstract]
 
 
Total
1,887.2 
2,995.2 
Liabilities [Abstract]
 
 
Total
 
0 
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] |
Cash and Cash Equivalents [Member]
 
 
Assets [Abstract]
 
 
Cash and cash equivalents
1,708.4 
2,575.7 
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] |
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
10.9 
352.9 
Short-term investments: Trading securities
72.2 
66.6 
Total short-term investments
83.1 
419.5 
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] |
Prepaid Expenses and Other Current Assets [Member]
 
 
Assets [Abstract]
 
 
Prepaid expenses and other current assets: Derivative assets
0.9 
0 
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] |
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
94.8 
0 
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] |
Other Assets [Member]
 
 
Assets [Abstract]
 
 
Other Assets: Derivative assets
0 
0 
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] |
Accrued Liabilities [Member]
 
 
Liabilities [Abstract]
 
 
Accrued liabilities: Derivative liabilities
0.4 
0 
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] |
Other Long-term Liabilities [Member]
 
 
Liabilities [Abstract]
 
 
Other long-term liabilities: Derivative liabilities
 
0 
Significant Other Observable Inputs (Level 2) [Member]
 
 
Assets [Abstract]
 
 
Total
307.9 
307.4 
Liabilities [Abstract]
 
 
Total
 
4.0 
Significant Other Observable Inputs (Level 2) [Member] |
Cash and Cash Equivalents [Member]
 
 
Assets [Abstract]
 
 
Cash and cash equivalents
0 
0 
Significant Other Observable Inputs (Level 2) [Member] |
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
52.3 
238.6 
Short-term investments: Trading securities
0 
0 
Total short-term investments
52.3 
238.6 
Significant Other Observable Inputs (Level 2) [Member] |
Prepaid Expenses and Other Current Assets [Member]
 
 
Assets [Abstract]
 
 
Prepaid expenses and other current assets: Derivative assets
27.8 
12.5 
Significant Other Observable Inputs (Level 2) [Member] |
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
209.8 
44.9 
Significant Other Observable Inputs (Level 2) [Member] |
Other Assets [Member]
 
 
Assets [Abstract]
 
 
Other Assets: Derivative assets
18.0 
11.4 
Significant Other Observable Inputs (Level 2) [Member] |
Accrued Liabilities [Member]
 
 
Liabilities [Abstract]
 
 
Accrued liabilities: Derivative liabilities
2.0 
3.5 
Significant Other Observable Inputs (Level 2) [Member] |
Other Long-term Liabilities [Member]
 
 
Liabilities [Abstract]
 
 
Other long-term liabilities: Derivative liabilities
 
0.5 
Significant Unobservable Inputs (Level 3) [Member]
 
 
Assets [Abstract]
 
 
Total
13.8 
13.4 
Liabilities [Abstract]
 
 
Total
 
0 
Significant Unobservable Inputs (Level 3) [Member] |
Cash and Cash Equivalents [Member]
 
 
Assets [Abstract]
 
 
Cash and cash equivalents
0 
0 
Significant Unobservable Inputs (Level 3) [Member] |
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
0 
0 
Short-term investments: Trading securities
0 
0 
Total short-term investments
0 
0 
Significant Unobservable Inputs (Level 3) [Member] |
Prepaid Expenses and Other Current Assets [Member]
 
 
Assets [Abstract]
 
 
Prepaid expenses and other current assets: Derivative assets
0 
0 
Significant Unobservable Inputs (Level 3) [Member] |
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
13.8 
13.4 
Significant Unobservable Inputs (Level 3) [Member] |
Other Assets [Member]
 
 
Assets [Abstract]
 
 
Other Assets: Derivative assets
0 
0 
Significant Unobservable Inputs (Level 3) [Member] |
Accrued Liabilities [Member]
 
 
Liabilities [Abstract]
 
 
Accrued liabilities: Derivative liabilities
0 
0 
Significant Unobservable Inputs (Level 3) [Member] |
Other Long-term Liabilities [Member]
 
 
Liabilities [Abstract]
 
 
Other long-term liabilities: Derivative liabilities
 
0 
Agency Obligations [Member] |
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
 
20.0 
Agency Obligations [Member] |
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
8.9 
8.1 
Agency Obligations [Member] |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] |
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
 
0 
Agency Obligations [Member] |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] |
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
0 
0 
Agency Obligations [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
 
20.0 
Agency Obligations [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
8.9 
8.1 
Agency Obligations [Member] |
Significant Unobservable Inputs (Level 3) [Member] |
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
 
0 
Agency Obligations [Member] |
Significant Unobservable Inputs (Level 3) [Member] |
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
0 
0 
Commercial Paper [Member] |
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
 
127.0 
Commercial Paper [Member] |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] |
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
 
0 
Commercial Paper [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
 
127.0 
Commercial Paper [Member] |
Significant Unobservable Inputs (Level 3) [Member] |
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
 
0 
Corporate Debt Securities [Member] |
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
4.9 
57.5 
Corporate Debt Securities [Member] |
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
130.9 
36.8 
Corporate Debt Securities [Member] |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] |
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
0 
0 
Corporate Debt Securities [Member] |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] |
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
0 
0 
Corporate Debt Securities [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
4.9 
57.5 
Corporate Debt Securities [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
130.9 
36.8 
Corporate Debt Securities [Member] |
Significant Unobservable Inputs (Level 3) [Member] |
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
0 
0 
Corporate Debt Securities [Member] |
Significant Unobservable Inputs (Level 3) [Member] |
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
0 
0 
Auction Rate Securities [Member] |
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
13.8 
13.4 
Auction Rate Securities [Member] |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] |
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
0 
0 
Auction Rate Securities [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
0 
0 
Auction Rate Securities [Member] |
Significant Unobservable Inputs (Level 3) [Member] |
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
13.8 
13.4 
Foreign Government Obligations [Member] |
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
33.7 
 
Foreign Government Obligations [Member] |
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
17.4 
 
Foreign Government Obligations [Member] |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] |
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
0 
 
Foreign Government Obligations [Member] |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] |
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
0 
 
Foreign Government Obligations [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
33.7 
 
Foreign Government Obligations [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
17.4 
 
Foreign Government Obligations [Member] |
Significant Unobservable Inputs (Level 3) [Member] |
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
0 
 
Foreign Government Obligations [Member] |
Significant Unobservable Inputs (Level 3) [Member] |
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
0 
 
US Government Treasury Securities [Member] |
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
10.9 
352.9 
US Government Treasury Securities [Member] |
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
94.8 
 
US Government Treasury Securities [Member] |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] |
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
10.9 
352.9 
US Government Treasury Securities [Member] |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] |
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
94.8 
 
US Government Treasury Securities [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
0 
0 
US Government Treasury Securities [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
0 
 
US Government Treasury Securities [Member] |
Significant Unobservable Inputs (Level 3) [Member] |
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
0 
0 
US Government Treasury Securities [Member] |
Significant Unobservable Inputs (Level 3) [Member] |
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
0 
 
State and Local Government Obligations [Member] |
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
12.7 
 
State and Local Government Obligations [Member] |
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
6.7 
 
State and Local Government Obligations [Member] |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] |
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
0 
 
State and Local Government Obligations [Member] |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] |
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
0 
 
State and Local Government Obligations [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
12.7 
 
State and Local Government Obligations [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
6.7 
 
State and Local Government Obligations [Member] |
Significant Unobservable Inputs (Level 3) [Member] |
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
0 
 
State and Local Government Obligations [Member] |
Significant Unobservable Inputs (Level 3) [Member] |
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
0 
 
Certificates of Deposit [Member] |
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
1.0 
34.1 
Certificates of Deposit [Member] |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] |
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
0 
0 
Certificates of Deposit [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
1.0 
34.1 
Certificates of Deposit [Member] |
Significant Unobservable Inputs (Level 3) [Member] |
Short-term Investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
0 
0 
Mortgage and Asset-backed Securities [Member] |
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
45.9 
 
Mortgage and Asset-backed Securities [Member] |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] |
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
0 
 
Mortgage and Asset-backed Securities [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
45.9 
 
Mortgage and Asset-backed Securities [Member] |
Significant Unobservable Inputs (Level 3) [Member] |
Long-term Investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
$ 0 
 
Inventories (Narrative) (Details) (Coffee Contracts [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 28, 2014
Sep. 29, 2013
Sep. 28, 2014
Fixed Price Contracts [Member]
Sep. 28, 2014
Price-to-be-fixed Contracts [Member]
Sep. 28, 2014
Future [Member]
Price-to-be-fixed Contracts [Member]
Sep. 28, 2014
Collar Instruments [Member]
Price-to-be-fixed Contracts [Member]
Amount of coffee committed to be purchased
 
 
$ 417 
$ 718 
 
 
Notional amounts of outstanding derivative contracts
$ 45 
$ 0 
 
 
$ 29 
$ 16 
Inventories (Components of Inventories) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 28, 2014
Sep. 29, 2013
Inventory Disclosure [Abstract]
 
 
Unroasted coffee
$ 432.3 
$ 493.0 
Roasted coffee
238.9 
235.4 
Other merchandise held for sale
265.7 
243.3 
Packaging and other supplies
154.0 
139.5 
Total
$ 1,090.9 
$ 1,111.2 
Equity and Cost Investments (Equity Method Investments) (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 3 Months Ended 3 Months Ended 0 Months Ended
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Sep. 28, 2014
Starbucks Coffee Korea Co., Ltd. [Member]
Sep. 28, 2014
President Starbucks Coffee Taiwan Ltd. [Member]
Sep. 28, 2014
Shanghai President Coffee Co. [Member]
Sep. 28, 2014
Tata Starbucks Limited (India) [Member]
Sep. 28, 2014
North America Coffee Partnership [Member]
Sep. 29, 2013
Starbucks Spain [Member]
Sep. 28, 2014
Starbucks Spain [Member]
Sep. 28, 2014
Starbucks Coffee Japan Ltd [Member]
Sep. 28, 2014
Berjaya Starbucks Coffee Company Sdn. Bhd. (Malaysia) [Member]
Sep. 28, 2014
Starbucks Coffee Japan Ltd [Member]
Oct. 31, 2014
Subsequent Event [Member]
Starbucks Coffee Japan Ltd [Member]
Oct. 31, 2014
Subsequent Event [Member]
Starbucks Coffee Japan Ltd [Member]
Schedule of Equity Method Investments [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ownership percentage in equity investees
 
 
 
50.00% 
50.00% 
50.00% 
50.00% 
50.00% 
49.00% 
49.00% 
 
50.00% 
39.50% 
 
 
Market value of investment in Starbucks Japan
 
 
 
 
 
 
 
 
 
 
$ 762 
 
 
 
 
Equity method investments
469.3 
450.9 
 
 
 
 
 
 
 
 
181.0 
 
 
 
 
Acquisition date
 
 
 
 
 
 
 
 
 
 
 
 
 
Oct. 31, 2014 
 
Ownership interest in Starbucks Japan acquired through first tender offer step
 
 
 
 
 
 
 
 
 
 
 
 
 
 
39.50% 
Proceeds from sale of equity method investments
 
 
 
 
 
 
 
 
 
 
 
88.0 
 
 
 
Gain on sale of investments
 
 
 
 
 
 
 
 
 
 
 
67.8 
 
 
 
Payments to acquire equity method investments
 
 
 
 
 
 
 
 
33 
 
 
 
 
 
 
Revenues generated from related parties
219.2 
205.1 
190.3 
 
 
 
 
 
 
 
 
 
 
 
 
Related costs of sales
121.2 
115.4 
111.0 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts receivables from equity method investees
$ 54.9 
$ 48.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity and Cost Investments (Cost Method Investments) (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Sep. 28, 2014
Sep. 29, 2013
Sep. 28, 2014
Company Store Investees [Member]
Sep. 28, 2014
Square Preferred Shares [Member]
Sep. 29, 2013
Argentina Joint Venture
Mar. 31, 2013
Mexico Joint Venture [Member]
Schedule of Cost-method Investments [Line Items]
 
 
 
 
 
 
Cost method investments
$ 45.6 
$ 45.6 
$ 19.0 
$ 25.0 
 
 
Ownership interest in joint venture sold
 
 
 
 
18.00% 
18.00% 
Proceeds from divestiture of interest in joint venture
 
 
 
 
4.4 
50.3 
Gain/(loss) on sale of joint venture
 
 
 
 
$ (1.0)
$ 35.2 
Equity and Cost Investments (Equity and Cost Investments) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 28, 2014
Sep. 29, 2013
Equity Method Investments and Joint Ventures [Abstract]
 
 
Equity method investments
$ 469.3 
$ 450.9 
Cost method investments
45.6 
45.6 
Total
$ 514.9 
$ 496.5 
Equity and Cost Investments (Summarized Combined Financial Information of Equity Method Investees) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Equity Method Investments and Joint Ventures [Abstract]
 
 
 
Current assets
$ 701.3 
$ 675.8 
 
Noncurrent assets
873.9 
783.3 
 
Current liabilities
615.6 
466.6 
 
Noncurrent liabilities
79.1 
148.9 
 
Net revenues
3,461.3 
3,018.7 
2,796.7 
Operating income
467.7 
434.8 
353.5 
Net earnings
$ 382.6 
$ 358.0 
$ 286.7 
Supplemental Balance Sheet Information (Property, Plant and Equipment, net) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 28, 2014
Sep. 29, 2013
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 8,581.1 
$ 7,782.1 
Accumulated depreciation
(5,062.1)
(4,581.6)
Property, plant and equipment, net
3,519.0 
3,200.5 
Land [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
46.7 
47.0 
Buildings [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
278.1 
259.6 
Leasehold improvements [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
4,858.4 
4,431.6 
Store equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
1,493.3 
1,353.9 
Roasting equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
410.9 
397.9 
Furniture, fixtures and other[Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
1,078.1 
949.7 
Work in progress [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 415.6 
$ 342.4 
Supplemental Balance Sheet Information (Accrued Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 28, 2014
Sep. 29, 2013
Balance Sheet Related Disclosures [Abstract]
 
 
Accrued compensation and related costs
$ 437.9 
$ 420.2 
Accrued occupancy costs
119.8 
120.7 
Accrued taxes
272.0 
125.0 
Accrued dividend payable
239.8 
195.8 
Other
444.9 
407.6 
Total accrued liabilities
$ 1,514.4 
$ 1,269.3 
Other Intangible Assets and Goodwill (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Goodwill and Intangible Assets Disclosure [Abstract]
 
 
 
Amortization expense for definite-lived intangible assets
$ 8.7 
$ 7.7 
$ 4.5 
Other Intangible Assets and Goodwill (Indefinite-Lived Intangible Assets) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 28, 2014
Sep. 29, 2013
Indefinite-lived Intangible Assets [Line Items]
 
 
Indefinite-lived intangible assets
$ 212.6 
$ 205.6 
Trade Names, Trademarks and Patents [Member]
 
 
Indefinite-lived Intangible Assets [Line Items]
 
 
Indefinite-lived intangible assets
197.5 
190.5 
Other Indefinite-Lived Intangible Assets [Member]
 
 
Indefinite-lived Intangible Assets [Line Items]
 
 
Indefinite-lived intangible assets
$ 15.1 
$ 15.1 
Other Intangible Assets and Goodwill (Changes In Carrying Amount Of Goodwill By Reportable Operating Segment) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 28, 2014
Sep. 29, 2013
Goodwill [Line Items]
 
 
Goodwill prior to impairment, beginning balance
$ 871.5 
$ 407.7 
Accumulated impairment charges, beginning balance
(8.6)
(8.6)
Goodwill, beginning balance
862.9 
399.1 
Acquisitions/(divestitures)
 
463.8 
Impairment
(0.8)
 
Other
(5.9)1
0 1
Goodwill prior to impairment, ending balance
865.6 
871.5 
Accumulated impairment charges, ending balance
(9.4)
(8.6)
Goodwill, ending balance
856.2 
862.9 
Americas [Member]
 
 
Goodwill [Line Items]
 
 
Goodwill prior to impairment, beginning balance
230.2 
235.9 
Accumulated impairment charges, beginning balance
(8.6)
(8.6)
Goodwill, beginning balance
221.6 
227.3 
Acquisitions/(divestitures)
 
(3.7)
Impairment
0 
 
Other
(2.6)1
(2.0)1
Goodwill prior to impairment, ending balance
227.6 
230.2 
Accumulated impairment charges, ending balance
(8.6)
(8.6)
Goodwill, ending balance
219.0 
221.6 
EMEA [Member]
 
 
Goodwill [Line Items]
 
 
Goodwill prior to impairment, beginning balance
62.2 
60.0 
Accumulated impairment charges, beginning balance
0 
0 
Goodwill, beginning balance
62.2 
60.0 
Acquisitions/(divestitures)
 
0 
Impairment
0 
 
Other
(3.1)1
2.2 1
Goodwill prior to impairment, ending balance
59.1 
62.2 
Accumulated impairment charges, ending balance
0 
0 
Goodwill, ending balance
59.1 
62.2 
China / Asia Pacific [Member]
 
 
Goodwill [Line Items]
 
 
Goodwill prior to impairment, beginning balance
75.1 
75.3 
Accumulated impairment charges, beginning balance
0 
0 
Goodwill, beginning balance
75.1 
75.3 
Acquisitions/(divestitures)
 
0 
Impairment
0 
 
Other
(0.2)1
(0.2)1
Goodwill prior to impairment, ending balance
74.9 
75.1 
Accumulated impairment charges, ending balance
0 
0 
Goodwill, ending balance
74.9 
75.1 
Channel Development [Member]
 
 
Goodwill [Line Items]
 
 
Goodwill prior to impairment, beginning balance
23.8 
23.8 
Accumulated impairment charges, beginning balance
0 
0 
Goodwill, beginning balance
23.8 
23.8 
Acquisitions/(divestitures)
 
0 
Impairment
0 
 
Other
0 1
0 1
Goodwill prior to impairment, ending balance
23.8 
23.8 
Accumulated impairment charges, ending balance
0 
0 
Goodwill, ending balance
23.8 
23.8 
All Other Segments [Member]
 
 
Goodwill [Line Items]
 
 
Goodwill prior to impairment, beginning balance
480.2 
12.7 
Accumulated impairment charges, beginning balance
0 
0 
Goodwill, beginning balance
480.2 
12.7 
Acquisitions/(divestitures)
 
467.5 
Impairment
(0.8)
 
Other
0 1
0 1
Goodwill prior to impairment, ending balance
480.2 
480.2 
Accumulated impairment charges, ending balance
(0.8)
0 
Goodwill, ending balance
$ 479.4 
$ 480.2 
Other Intangible Assets and Goodwill (Definite-Lived Intangible Assets) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 28, 2014
Sep. 29, 2013
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
$ 89.8 
$ 89.7 
Accumulated Amortization
(28.9)
(20.5)
Net Carrying Amount
60.9 
69.2 
Acquired Rights [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
36.8 
38.8 
Accumulated Amortization
(10.1)
(7.1)
Net Carrying Amount
26.7 
31.7 
Acquired Trade Secrets and Processes [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
27.6 
27.6 
Accumulated Amortization
(5.4)
(2.7)
Net Carrying Amount
22.2 
24.9 
Trade Names, Trademarks and Patents [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
21.6 
19.5 
Accumulated Amortization
(11.6)
(9.8)
Net Carrying Amount
10.0 
9.7 
Other Definite-Lived Intangible Assets [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross Carrying Amount
3.8 
3.8 
Accumulated Amortization
(1.8)
(0.9)
Net Carrying Amount
$ 2.0 
$ 2.9 
Other Intangible Assets and Goodwill (Estimated Future Amortization Expense) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 28, 2014
Sep. 29, 2013
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
 
 
2015
$ 9.3 
 
2016
8.7 
 
2017
8.4 
 
2018
6.8 
 
2019
6.5 
 
Thereafter
21.2 
 
Net Carrying Amount
$ 60.9 
$ 69.2 
Debt (Narrative) (Details) (USD $)
12 Months Ended 3 Months Ended 12 Months Ended 1 Months Ended 1 Months Ended 1 Months Ended 1 Months Ended
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Sep. 28, 2014
Revolving Credit Facility [Member]
Sep. 29, 2013
Revolving Credit Facility [Member]
Sep. 28, 2014
Revolving Credit Facility [Member]
Eurocurrency Rate [Member]
Sep. 28, 2014
Revolving Credit Facility [Member]
Base Rate [Member]
Sep. 28, 2014
Senior Notes [Member]
Sep. 28, 2014
Commercial Paper [Member]
Dec. 29, 2013
Commercial Paper [Member]
Sep. 29, 2013
Commercial Paper [Member]
Sep. 28, 2014
Commercial Paper [Member]
Maximum [Member]
Sep. 28, 2014
Letter of Credit [Member]
Sep. 28, 2014
0.875% Senior Notes [Member]
Sep. 29, 2013
0.875% Senior Notes [Member]
Dec. 29, 2013
0.875% Senior Notes [Member]
Senior Notes [Member]
Sep. 28, 2014
2.000% Senior Notes [Member]
Sep. 29, 2013
2.000% Senior Notes [Member]
Dec. 29, 2013
2.000% Senior Notes [Member]
Senior Notes [Member]
Sep. 28, 2014
3.850% Senior Notes [Member]
Sep. 29, 2013
3.850% Senior Notes [Member]
Sep. 29, 2013
3.850% Senior Notes [Member]
Senior Notes [Member]
Sep. 28, 2014
6.250% Senior Notes [Member]
Sep. 29, 2013
6.250% Senior Notes [Member]
Aug. 31, 2007
6.250% Senior Notes [Member]
Senior Notes [Member]
Unsecured revolving credit facility
 
 
 
$ 750,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount of credit facility available for issuances of letters of credit
 
 
 
150,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maturity date of credit facility
 
 
 
Feb. 05, 2018 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum increase in commitment amount allowable under the credit facility
 
 
 
750,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Incremental interest rate over variable rate loans
 
 
 
 
 
0.795% 
0.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit covenant compliance
 
 
 
The credit facility contains provisions requiring us to maintain compliance with certain covenants, including a minimum fixed charge coverage ratio, which measures our ability to cover financing expenses. As a result of the arbitrator’s ruling on the Kraft litigation, the credit facility was amended on November 15, 2013 to exclude the impact of the litigation charge, including the impact on our fixed charge coverage ratio. As of September 28, 2014, we were in compliance with all applicable covenants. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount outstanding under credit facility
 
 
 
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum allowable aggregate amount outstanding under Commercial Paper Program
 
 
 
 
 
 
 
 
1,000,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum allowable maturity period of credit under Commercial Paper Program
 
 
 
 
 
 
 
 
 
 
 
397 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
Combined borrowing limit of Commercial Paper Program and Credit Facility
 
 
 
 
 
 
 
 
727,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Letters of credit outstanding
 
 
 
 
 
 
 
 
 
 
 
 
23,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial paper borrowings
 
 
 
 
 
 
 
 
25,000,000 
225,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Litigation payment
2,763,900,000 
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings outstanding under commercial paper program
 
 
 
 
 
 
 
 
0 
 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issuance date of Senior Notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dec. 02, 2013 
 
 
Dec. 02, 2013 
 
 
Sep. 06, 2013 
 
 
Aug. 15, 2007 
Maturity date of Senior Notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dec. 05, 2016 
 
 
Dec. 05, 2018 
 
 
Oct. 01, 2023 
 
 
Aug. 31, 2017 
Face amount of Senior Notes
 
 
 
 
 
 
 
 
 
 
 
 
 
400,000,000 
0 
400,000,000 
350,000,000 
0 
350,000,000 
750,000,000 
750,000,000 
750,000,000 
550,000,000 
550,000,000 
550,000,000 
Stated interest rate of Senior Notes
 
 
 
 
 
 
 
 
 
 
 
 
 
0.875% 
 
0.875% 
2.00% 
 
2.00% 
3.85% 
 
3.85% 
6.25% 
 
6.25% 
Long-term debt, covenant compliance
 
 
 
 
 
 
 
The indentures under which the above notes were issued also require us to maintain compliance with certain covenants, including limits on future liens and sale and leaseback transactions on certain material properties. As of September 28, 2014, we were in compliance with each of these covenants. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net of interest capitalized
64,100,000 
28,100,000 
32,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest capitalized
$ 6,200,000 
$ 10,400,000 
$ 3,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leases (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Leases [Abstract]
 
 
 
Sublease income recognized
$ 13.3 
$ 9.3 
$ 10.0 
Leases (Rent Expense Under Operating Lease Agreements) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Leases [Abstract]
 
 
 
Minimum rent
$ 907.4 
$ 838.3 
$ 759.0 
Contingent rent
66.8 
56.4 
44.7 
Total
$ 974.2 
$ 894.7 
$ 803.7 
Leases (Minimum Future Rental Payments Under Non-Cancelable Operating Leases) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 28, 2014
Leases [Abstract]
 
2015
$ 925.6 
2016
826.6 
2017
696.3 
2018
556.3 
2019
450.8 
Thereafter
1,502.3 
Total minimum lease payments
$ 4,957.9 
Equity (Narrative) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Sep. 28, 2014
Sep. 29, 2013
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 
 
Increase in share of net assets of Starbucks Japan at IPO
$ 39.4 
$ 39.4 
Shares of common stock repurchased
10.5 
10.8 
Total cost of common stock repurchased
$ 769.8 
$ 544.1 
Shares available for repurchase
15.9 
 
Equity (Dividends Declared) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Sep. 28, 2014
Jun. 29, 2014
Mar. 30, 2014
Dec. 29, 2013
Sep. 29, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 30, 2012
Equity [Abstract]
 
 
 
 
 
 
 
 
Dividend per share
 
$ 0.26 
$ 0.26 
$ 0.26 
$ 0.26 
$ 0.21 
$ 0.21 
$ 0.21 
Dividend payable per share
$ 0.32 
 
 
 
 
 
 
 
Record date
Nov. 13, 2014 
Aug. 07, 2014 
May 08, 2014 
Feb. 06, 2014 
Nov. 14, 2013 
Aug. 08, 2013 
May 09, 2013 
Feb. 07, 2013 
Total amount
$ 239.8 
$ 195.3 
$ 195.5 
$ 196.4 
$ 195.8 
$ 158.0 
$ 157.3 
$ 157.5 
Payment date
Nov. 28, 2014 
Aug. 22, 2014 
May 23, 2014 
Feb. 21, 2014 
Nov. 29, 2013 
Aug. 23, 2013 
May 24, 2013 
Feb. 22, 2013 
Equity (Changes in Components Of Accumulated Other Comprehensive Income, Net Of Tax) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Net gains/(losses) in AOCI at September 29, 2013
$ 67.0 
 
 
Net gains/(losses) recognized in OCI before reclassifications, net of tax
(44.0)
 
 
Net (gains)/losses reclassified from AOCI to earnings, net of tax
2.3 
 
 
Other comprehensive income/(loss)
(41.7)
44.3 
(23.6)
Net gains/(losses) in AOCI at September 28, 2014
25.3 
67.0 
 
Available-for-sale Securities [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Net gains/(losses) in AOCI at September 29, 2013
(0.5)
 
 
Net gains/(losses) recognized in OCI before reclassifications, net of tax
1.0 
 
 
Net (gains)/losses reclassified from AOCI to earnings, net of tax
(0.9)
 
 
Other comprehensive income/(loss)
0.1 
 
 
Net gains/(losses) in AOCI at September 28, 2014
(0.4)
 
 
Cash Flow Hedging [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Net gains/(losses) in AOCI at September 29, 2013
26.8 
 
 
Net gains/(losses) recognized in OCI before reclassifications, net of tax
16.3 
 
 
Net (gains)/losses reclassified from AOCI to earnings, net of tax
3.2 
 
 
Other comprehensive income/(loss)
19.5 
 
 
Net gains/(losses) in AOCI at September 28, 2014
46.3 
 
 
Net Investment Hedging [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Net gains/(losses) in AOCI at September 29, 2013
(12.9)
 
 
Net gains/(losses) recognized in OCI before reclassifications, net of tax
16.1 
 
 
Net (gains)/losses reclassified from AOCI to earnings, net of tax
0 
 
 
Other comprehensive income/(loss)
16.1 
 
 
Net gains/(losses) in AOCI at September 28, 2014
3.2 
 
 
Translation Adjustment [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Net gains/(losses) in AOCI at September 29, 2013
53.6 
 
 
Net gains/(losses) recognized in OCI before reclassifications, net of tax
(77.4)
 
 
Net (gains)/losses reclassified from AOCI to earnings, net of tax
0 
 
 
Other comprehensive income/(loss)
(77.4)
 
 
Net gains/(losses) in AOCI at September 28, 2014
$ (23.8)
 
 
Employee Stock and Benefit Plans (Narrative) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended 12 Months Ended 0 Months Ended 1 Months Ended
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Sep. 28, 2014
Stock Options and Restricted Stock Units [Member]
Sep. 28, 2014
Employee Stock [Member]
Sep. 28, 2014
Stock Options [Member]
Sep. 29, 2013
Stock Options [Member]
Sep. 30, 2012
Stock Options [Member]
Sep. 28, 2014
Restricted Stock Units (RSUs) [Member]
Sep. 29, 2013
Restricted Stock Units (RSUs) [Member]
Sep. 30, 2012
Restricted Stock Units (RSUs) [Member]
Sep. 28, 2014
Employee Stock Purchase Plan ESPP [Member]
Sep. 28, 2014
Non Employee Director [Member]
Equity Options [Member]
Minimum [Member]
Sep. 28, 2014
Non Employee Director [Member]
Equity Options [Member]
Maximum [Member]
Dec. 21, 2012
Deferred Stock Plan [Member]
Nov. 30, 2006
Deferred Stock Plan [Member]
Common stock available for issuance pursuant to future equity-based compensation awards
 
 
 
56.0 
7.4 
 
 
 
 
 
 
 
 
 
 
 
Award expiration period (years)
 
 
 
 
 
10 years 
 
 
 
 
 
 
 
 
 
 
Award vesting period for non-employee directors (years)
 
 
 
 
 
 
 
 
 
 
 
 
1 year 
3 years 
 
 
Total unrecognized stock-based compensation expense, net of estimated forfeitures
 
 
 
 
 
$ 35 
 
 
$ 113 
 
 
 
 
 
 
 
Weighted average recognition period for total unrecognized stock-based compensation expense (in years)
 
 
 
 
 
2 years 7 months 
 
 
2 years 
 
 
 
 
 
 
 
Total intrinsic value of stock options exercised
 
 
 
 
 
258 
539 
440 
 
 
 
 
 
 
 
 
Total fair value of options vested
 
 
 
 
 
44 
56 
59 
 
 
 
 
 
 
 
 
Granted, weighted average grant date fair value per share
 
 
 
 
 
 
 
 
$ 80.13 
$ 50.23 
$ 44.05 
 
 
 
 
 
Total fair value of RSUs vested
 
 
 
 
 
 
 
 
103 
104 
80 
 
 
 
 
 
Maximum permitted contribution to Deferred Stock Plan, percent
 
 
 
 
 
 
 
 
 
 
 
10.00% 
 
 
 
 
Discounted stock purchase price, percent of market value
 
 
 
 
 
 
 
 
 
 
 
95.00% 
 
 
 
 
Number of shares issued under plan
 
 
 
 
 
 
 
 
 
 
 
0.4 
 
 
 
 
Shares deferred under 1997 Deferred Stock Plan
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.4 
Deferred shares issued under 1997 Deferred Stock Plan
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.2 
 
Shares paid for tax withholding for share based compensation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.2 
 
Matching contributions
$ 73.0 
$ 54.7 
$ 59.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
Employee Stock and Benefit Plans (Stock-Based Compensation Expense Recognized in the Consolidated Financial Statements) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
Stock-based compensation expense
$ 183.2 
$ 142.3 
$ 153.6 
Total related tax benefit
63.4 
49.8 
54.2 
Total capitalized stock-based compensation included in net property, plant and equipment and inventories on the consolidated balance sheets
1.9 
1.8 
2.0 
Options [Member]
 
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
Stock-based compensation expense
41.8 
37.1 
46.2 
Restricted Stock Units (RSUs) [Member]
 
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
Stock-based compensation expense
$ 141.4 
$ 105.2 
$ 107.4 
Employee Stock and Benefit Plans (Employee Stock Options Granted During the Period, Valuation Assumptions) (Details)
12 Months Ended
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
 
 
Expected term (in years)
4 years 6 months 
4 years 10 months 
4 years 10 months 
Expected stock price volatility
26.80% 
34.00% 
38.20% 
Risk-free interest rate
1.10% 
0.70% 
1.00% 
Expected dividend yield
1.30% 
1.60% 
1.50% 
Weighted average grant price
$ 80.23 
$ 51.23 
$ 44.26 
Estimated fair value per option granted
$ 16.72 
$ 12.88 
$ 12.79 
Employee Stock and Benefit Plans (Stock Option Transactions) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Shares Subject to Options
 
 
 
Outstanding, September 29, 2013, Shares Subject to Options
22.0 
 
 
Granted, Shares Subject to Options
3.1 
 
 
Exercised, Shares Subject to Options
(4.8)
 
 
Expired/forfeited, Shares Subject to Options
(0.5)
 
 
Outstanding, September 28, 2014, Shares Subject to Options
19.8 
22.0 
 
Exercisable, September 28, 2014, Shares Subject to Options
12.7 
 
 
Vested and expected to vest, September 28, 2014, Shares Subject to Options
19.2 
 
 
Weighted Average Exercise Price per Share
 
 
 
Outstanding, September 29, 2013, Weighted Average Exercise Price per Share Beginning Balance
$ 29.11 
 
 
Granted, Weighted Average Exercise Price per Share
$ 80.23 
$ 51.23 
$ 44.26 
Exercised, Weighted Average Exercise Price per Share
$ 24.27 
 
 
Expired/forfeited, Weighted Average Exercise Price per Share
$ 51.80 
 
 
Outstanding, September 28, 2014, Weighted Average Exercise Price per Share Ending Balance
$ 37.86 
$ 29.11 
 
Exercisable at September 28, 2014, Weighted Average Exercise Price per Share
$ 25.32 
 
 
Vested and expected to vest, September 28, 2014, Weighted Average Exercise Price per Share
$ 36.89 
 
 
Additional Disclosures
 
 
 
Outstanding, Weighted Average Remaining Contractual Life (Years)
5 years 9 months 
6 years 0 months 
 
Exercisable, September 28, 2014, Weighted Average Remaining Contractual Life (Years)
4 years 5 months 
 
 
Vested and expected to vest, September 28, 2014, Weighted Average Remaining Contractual Life (Years)
5 years 8 months 
 
 
Aggregate Intrinsic Value
 
 
 
Outstanding, Aggregate Intrinsic Value
$ 754 
$ 1,060 
 
Exercisable, September 28, 2014, Aggregate Intrinsic Value
631 
 
 
Vested and expected to vest, September 28, 2014, Aggregate Intrinsic Value
$ 747 
 
 
Employee Stock and Benefit Plans (RSU Transactions) (Details) (Restricted Stock Units (RSUs) [Member], USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Restricted Stock Units (RSUs) [Member]
 
 
 
Nonvested, Number of Shares
 
 
 
Nonvested, September 29, 2013, Number of Shares
5.8 
 
 
Granted, Number of Shares
2.9 
 
 
Vested, Number of Shares
(2.6)
 
 
Forfeited/canceled, Number of Shares
(0.7)
 
 
Nonvested, September 28, 2014, Number of Shares
5.4 
5.8 
 
Weighted Average Grant Date Fair Value per Share
 
 
 
Nonvested, September 29, 2013, Weighted Average Grant Date Fair Value per Share
$ 44.08 
 
 
Granted, Weighted Average Grant Date Fair Value per Share
$ 80.13 
$ 50.23 
$ 44.05 
Vested, Weighted Average Grant Date Fair Value per Share
$ 40.08 
 
 
Forfeited/canceled, Weighted Average Grant Date Fair Value per Share
$ 65.59 
 
 
Nonvested, September 28, 2014, Weighted Average Grant Date Fair Value per Share
$ 62.34 
$ 44.08 
 
Additional Disclosures
 
 
 
Nonvested, Weighted Average Remaining Contractual Life (Years)
1 year 
0 years 11 months 
 
Nonvested, Aggregate Intrinsic Value
$ 407 
$ 452 
 
Income Taxes (Narrative) (Details) (USD $)
12 Months Ended
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Oct. 2, 2011
Income Tax Disclosure [Abstract]
 
 
 
 
Deferred tax asset related to litigation charge, estimated recovery period
15 years 
 
 
 
Cumulative undistributed earnings of foreign subsidiaries and equity investees
$ 2,200,000,000 
 
 
 
Net change in total valuation allowance
6,300,000 
6,300,000 
 
 
Tax credit carryforward
31,200,000 
 
 
 
Foreign net operating loss carryforwards
342,400,000 
 
 
 
Gross unrecognized tax benefits
112,700,000 
88,800,000 
75,300,000 
52,900,000 
Unrecognized tax benefits affecting the effective tax rate if recognized
85,300,000 
 
 
 
Interest and penalties expense/(benefit) recognized in income tax expense
5,900,000 
(800,000)
(700,000)
 
Accrued interest and penalties
$ 10,600,000 
$ 4,700,000 
 
 
Income Taxes (Components of Earnings Before Income Taxes) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Sep. 29, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 30, 2012
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Income Tax Disclosure [Abstract]
 
 
 
 
 
 
 
United States, Total
 
 
 
 
$ 2,572.4 
$ (674.0)
$ 1,679.6 
United States, Related to litigation charge
 
 
 
 
 
(2,784.1)
 
United States, Other
 
 
 
 
 
2,110.1 
 
Foreign, Total
 
 
 
 
587.3 
444.1 
379.5 
Foreign, Related to litigation charge
 
 
 
 
 
0 
 
Foreign, Other
 
 
 
 
 
444.1 
 
Earnings/(loss) before income taxes
(2,052.2)
612.4 
588.8 
621.1 
3,159.7 
(229.9)
2,059.1 
Earnings before income taxes, Related to litigation charge
 
 
 
 
 
(2,784.1)
 
Earnings before income taxes, Other
 
 
 
 
 
$ 2,554.2 
 
Income Taxes (Provision for Income Taxes) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Sep. 29, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 30, 2012
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Income Tax Disclosure [Abstract]
 
 
 
 
 
 
 
Current taxes: US federal, Total
 
 
 
 
$ 822.7 
$ 616.6 
$ 466.0 
Current taxes: US federal, Related to litigation charge
 
 
 
 
 
0 
 
Current taxes: US federal, Other
 
 
 
 
 
616.6 
 
Current taxes: US state and local, Total
 
 
 
 
132.9 
93.8 
79.9 
Current taxes: US state and local, Related to litigation charge
 
 
 
 
 
0 
 
Current taxes: US state and local, Other
 
 
 
 
 
93.8 
 
Current taxes: Foreign, Total
 
 
 
 
128.8 
95.9 
76.8 
Current taxes: Foreign, Related to litigation charge
 
 
 
 
 
0 
 
Current taxes: Foreign, Other
 
 
 
 
 
95.9 
 
Total current taxes
 
 
 
 
1,084.4 
806.3 
622.7 
Total current taxes, Related to litigation charge
 
 
 
 
 
0 
 
Total current taxes, Other
 
 
 
 
 
806.3 
 
Deferred taxes: US federal, Total
 
 
 
 
12.0 
(898.8)
49.2 
Deferred taxes: US federal, Related to litigation charge
 
 
 
 
 
(922.3)
 
Deferred taxes: US federal, Other
 
 
 
 
 
23.5 
 
Deferred taxes: US state and local, Total
 
 
 
 
(4.9)
(144.0)
(0.7)
Deferred taxes: US state and local, Related to litigation charge
 
 
 
 
 
(148.7)
 
Deferred taxes: US state and local, Other
 
 
 
 
 
4.7 
 
Deferred taxes: Foreign
 
 
 
 
0.5 
(2.2)
3.2 
Deferred taxes: Foreign, Related to litigation charge
 
 
 
 
 
0 
 
Deferred taxes: Foreign, Other
 
 
 
 
 
(2.2)
 
Total deferred taxes
 
 
 
 
7.6 
(1,045.0)
51.7 
Total deferred taxes, Related to litigation charge
 
 
 
 
 
(1,071.0)
 
Total deferred taxes, Other
 
 
 
 
 
26.0 
 
Total provision for income taxes
(820.1)
194.6 
198.1 
188.7 
1,092.0 
(238.7)
674.4 
Total provision for income taxes, Related to litigation charge
 
 
 
 
 
(1,071.0)
 
Total provision for income taxes, Other
 
 
 
 
 
$ 832.3 
 
Income Taxes (Reconciliation of the Statutory US Federal Income Tax Rate With Our Effective Income Tax Rate) (Details)
12 Months Ended
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Statutory rate, Total
35.00% 
35.00% 
35.00% 
Statutory rate, Related to litigation charge
 
35.00% 
 
Statutory rate, Other
 
35.00% 
 
State income taxes, net of federal tax benefit, Total
2.60% 
15.80% 
2.50% 
State income taxes, net of federal tax benefit, Related to litigation charge
 
3.50% 
 
State income taxes, net of federal tax benefit, Other
 
2.40% 
 
Benefits and taxes related to foreign operations, Total
(1.90%)
37.50% 
(3.30%)
Benefits and taxes related to foreign operations, Related to litigation charge
 
0.00% 
 
Benefits and taxes related to foreign operations, Other
 
(3.40%)
 
Domestic production activity deduction, Total
(0.70%)
8.10% 
(0.70%)
Domestic production activity deduction, Related to litigation charge
 
0.00% 
 
Domestic production activity deduction, Other
 
(0.70%)
 
Domestic tax credits, Total
(0.20%)
2.80% 
(0.30%)
Domestic tax credits, Related to litigation charge
 
0.00% 
 
Domestic tax credits, Other
 
(0.30%)
 
Charitable contributions, Total
(0.40%)
3.90% 
(0.50%)
Charitable contributions, Related to litigation charge
 
0.00% 
 
Charitable contributions, Other
 
(0.30%)
 
Other, net, Total
0.20% 
0.70% 
0.10% 
Other, net, Related to litigation charge
 
0.00% 
 
Other, net, Other
 
(0.10%)
 
Effective tax rate, Total
34.60% 
103.80% 
32.80% 
Effective tax rate, Related to litigation charge
 
38.50% 
 
Effective tax rate, Other
 
32.60% 
 
Income Taxes (Tax Effect of Temporary Differences and Carryforwards That Comprise Significant Portions of Deferred Tax Assets and Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 28, 2014
Sep. 29, 2013
Income Tax Disclosure [Abstract]
 
 
Property, plant and equipment
$ 78.5 
$ 64.9 
Accrued occupancy costs
58.8 
69.0 
Accrued compensation and related costs
75.3 
77.6 
Other accrued liabilities
27.6 
22.0 
Asset retirement obligation asset
18.6 
21.0 
Deferred revenue
63.4 
49.9 
Asset impairments
49.5 
33.3 
Tax credits
20.3 
19.1 
Stock-based compensation
131.5 
120.9 
Net operating losses
104.4 
99.0 
Litigation charge
1,002.0 
1,071.9 
Other
77.0 
62.7 
Total
1,706.9 
1,711.3 
Valuation allowance
(166.8)
(160.5)
Total deferred tax asset, net of valuation allowance
1,540.1 
1,550.8 
Property, plant and equipment
(148.2)
(182.9)
Intangible assets and goodwill
(92.9)
(81.6)
Other
(89.4)
(53.1)
Total
(330.5)
(317.6)
Net deferred tax asset
1,209.6 
1,233.2 
Current deferred income tax assets
317.4 
277.3 
Long-term deferred income tax assets
903.3 
967.0 
Current deferred income tax liabilities
(4.2)
(1.0)
Long-term deferred income tax liabilities
$ (6.9)
$ (10.1)
Earnings Per Share (Narrative) (Details) (Employee Stock Option [Member])
In Millions, unless otherwise specified
3 Months Ended
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Employee Stock Option [Member]
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
Out-of-the-money stock options
2.7 
0 
0.2 
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 12 Months Ended
Sep. 28, 2014
Jun. 29, 2014
Mar. 30, 2014
Dec. 29, 2013
Sep. 29, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 30, 2012
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Earnings Per Share [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Net earnings attributable to Starbucks
$ 587.9 
$ 512.6 
$ 427.0 
$ 540.7 
$ (1,232.0)1
$ 417.8 
$ 390.4 
$ 432.2 
$ 2,068.1 
$ 8.3 1
$ 1,383.8 
Weighted average common shares and common stock units outstanding (for basic calculation)
 
 
 
 
 
 
 
 
753.1 
749.3 
754.4 
Dilutive effect of outstanding common stock options and RSUs
 
 
 
 
 
 
 
 
10.0 
13.0 
18.6 
Weighted average common and common equivalent shares outstanding (for diluted calculation)
 
 
 
 
 
 
 
 
763.1 
762.3 
773.0 
EPS - basic
 
 
 
 
 
 
 
 
$ 2.75 
$ 0.01 
$ 1.83 
EPS - diluted
$ 0.77 
$ 0.67 
$ 0.56 
$ 0.71 
$ (1.64)1
$ 0.55 
$ 0.51 
$ 0.57 
$ 2.71 
$ 0.01 1
$ 1.79 
Commitments And Contingencies (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
0 Months Ended 3 Months Ended 12 Months Ended
Nov. 12, 2013
Sep. 29, 2013
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Commitments and Contingencies Disclosure [Abstract]
 
 
 
 
 
Litigation settlement amount
$ 2,227.5 
 
 
 
 
Litigation settlement interest
556.6 
 
 
 
 
Litigation charge
 
2,784.1 
 
 
 
Litigation payment
 
 
$ 2,763.9 
$ 0 
$ 0 
Segment Reporting (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Sep. 29, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 30, 2012
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
Basis for segment information
 
 
 
 
Segment information is prepared on the same basis that our ceo, who is our chief operating decision maker, manages the segments, evaluates financial results, and makes key operating decisions. 
 
 
Number of reportable segments
 
 
 
 
4 
 
 
Effect on previously reported segment information for change in reportable operating segments
 
 
 
 
Concurrent with the change in reportable operating segments and realignment of certain operating expenses noted above, we revised our prior period financial information to reflect comparable financial information for the new segment structure and reporting changes. Historical financial information presented herein reflects these changes. There was no impact on consolidated net revenues, total operating expenses, operating income, or net earnings as a result of these changes. 
 
 
Disclosure of significant customers
 
 
 
 
No customer accounts for 10% or more of our revenues 
 
 
Reclassification resulting from correction of an immaterial error
$ 6.2 
$ 6.4 
$ 6.3 
$ 6.4 
 
$ 25.4 
$ 22.7 
Canada UK and China [Member]
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
Percentage of revenue from other countries
 
 
 
 
65.00% 
 
 
Operating Segments [Member] |
Americas [Member]
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
Description of segment products and services
 
 
 
 
Americas, EMEA and CAP operations sell coffee and other beverages, complementary food, packaged coffees, single-serve coffee products and a focused selection of merchandise through company-operated stores and licensed stores. 
 
 
Operating Segments [Member] |
EMEA [Member]
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
Description of segment products and services
 
 
 
 
Americas, EMEA and CAP operations sell coffee and other beverages, complementary food, packaged coffees, single-serve coffee products and a focused selection of merchandise through company-operated stores and licensed stores. 
 
 
Operating Segments [Member] |
China / Asia Pacific [Member]
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
Description of segment products and services
 
 
 
 
Americas, EMEA and CAP operations sell coffee and other beverages, complementary food, packaged coffees, single-serve coffee products and a focused selection of merchandise through company-operated stores and licensed stores. 
 
 
Operating Segments [Member] |
Channel Development [Member]
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
Description of segment products and services
 
 
 
 
Channel Development operations sell a selection of packaged 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, such as Frappuccino® coffee drinks, Starbucks Doubleshot® espresso drinks and Starbucks Refreshers® beverages, as well as Starbucks- and Tazo-branded single-serve products. The US foodservice business, which is included in the Channel Development segment, sells coffee and other related products to institutional foodservice companies. 
 
 
Reclassification resulting from correction of an immaterial error
 
 
 
 
 
21.8 
19.2 
Operating Segments [Member] |
All Other Segments [Member]
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
Description of All Other Segments
 
 
 
 
Other is now referred to as All Other Segments and includes Teavana, Seattle's Best Coffee and Evolution Fresh, as well as our Digital Ventures business 
 
 
Reclassification resulting from correction of an immaterial error
 
 
 
 
 
$ 3.6 
$ 3.5 
Segment Reporting (Consolidated Revenue Mix By Product Type) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Sep. 28, 2014
Jun. 29, 2014
Mar. 30, 2014
Dec. 29, 2013
Sep. 29, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 30, 2012
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Total net revenues
$ 4,180.8 
$ 4,153.7 
$ 3,873.8 
$ 4,239.6 
$ 3,788.8 1
$ 3,735.3 1
$ 3,549.6 1
$ 3,793.2 1
$ 16,447.8 
$ 14,866.8 1
$ 13,276.8 
Percentage of Product Revenue to Total Revenue
 
 
 
 
 
 
 
 
100.00% 
100.00% 
100.00% 
Beverage [Member]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
9,458.4 
8,674.7 
7,883.8 
Percentage of Product Revenue to Total Revenue
 
 
 
 
 
 
 
 
58.00% 
58.00% 
59.00% 
Food [Member]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
2,505.2 
2,189.8 
1,875.1 
Percentage of Product Revenue to Total Revenue
 
 
 
 
 
 
 
 
15.00% 
15.00% 
14.00% 
Packaged and single-serve coffees and teas [Member]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
2,370.0 
2,206.5 
1,965.8 
Percentage of Product Revenue to Total Revenue
 
 
 
 
 
 
 
 
14.00% 
15.00% 
15.00% 
Other [Member]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
$ 2,114.2 2
$ 1,795.8 2
$ 1,552.1 2
Percentage of Product Revenue to Total Revenue
 
 
 
 
 
 
 
 
13.00% 2
12.00% 2
12.00% 2
Segment Reporting (Net Revenues From External Customers By Geographic Area) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Sep. 28, 2014
Jun. 29, 2014
Mar. 30, 2014
Dec. 29, 2013
Sep. 29, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 30, 2012
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Total net revenues
$ 4,180.8 
$ 4,153.7 
$ 3,873.8 
$ 4,239.6 
$ 3,788.8 1
$ 3,735.3 1
$ 3,549.6 1
$ 3,793.2 1
$ 16,447.8 
$ 14,866.8 1
$ 13,276.8 
United States [Member]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
12,590.6 
11,389.6 
10,154.8 
Other Countries [Member]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
$ 3,857.2 
$ 3,477.2 
$ 3,122.0 
Segment Reporting (Long Lived Assets By Geographic Area) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Long-lived assets
$ 6,584.2 
$ 6,045.3 
$ 4,019.6 
United States [Member]
 
 
 
Long-lived assets
5,135.8 
4,641.3 
2,767.1 
Other Countries [Member]
 
 
 
Long-lived assets
$ 1,448.4 
$ 1,404.0 
$ 1,252.5 
Segment Reporting (Financial Information For Reportable Operating Segments And All Other Segments) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Sep. 28, 2014
Jun. 29, 2014
Mar. 30, 2014
Dec. 29, 2013
Sep. 29, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 30, 2012
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
$ 4,180.8 
$ 4,153.7 
$ 3,873.8 
$ 4,239.6 
$ 3,788.8 1
$ 3,735.3 1
$ 3,549.6 1
$ 3,793.2 1
$ 16,447.8 
$ 14,866.8 1
$ 13,276.8 
Depreciation and amortization expenses
 
 
 
 
166.1 
153.3 
153.1 
148.9 
709.6 
621.4 
550.3 
Income from equity investees
 
 
 
 
81.0 
63.4 
52.5 
54.5 
268.3 
251.4 
210.7 
Operating income/(loss)
854.9 
768.5 
644.1 
813.5 
(2,115.2)2
615.2 
544.1 
630.6 
3,081.1 
(325.4)2
1,997.4 
Total assets
10,752.9 
 
 
 
11,516.7 
 
 
 
10,752.9 
11,516.7 
 
Operating Segments [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
16,447.8 
14,866.8 
13,276.8 
Depreciation and amortization expenses
 
 
 
 
 
 
 
 
592.0 
531.4 
476.5 
Income from equity investees
 
 
 
 
 
 
 
 
268.3 
251.4 
210.7 
Operating income/(loss)
 
 
 
 
 
 
 
 
3,831.1 
3,131.6 
2,592.8 
Total assets
5,034.0 
 
 
 
4,549.3 
 
 
 
5,034.0 
4,549.3 
3,492.6 
Operating Segments [Member] |
Americas [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
11,980.5 
11,000.8 
9,936.0 
Depreciation and amortization expenses
 
 
 
 
 
 
 
 
469.5 
429.3 
392.4 
Income from equity investees
 
 
 
 
 
 
 
 
0 
2.4 
2.1 
Operating income/(loss)
 
 
 
 
 
 
 
 
2,809.0 
2,365.2 
2,020.4 
Total assets
2,521.4 
 
 
 
2,323.4 
 
 
 
2,521.4 
2,323.4 
2,199.0 
Operating Segments [Member] |
EMEA [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
1,294.8 
1,160.0 
1,141.3 
Depreciation and amortization expenses
 
 
 
 
 
 
 
 
59.4 
55.5 
57.1 
Income from equity investees
 
 
 
 
 
 
 
 
3.7 
0.4 
0.3 
Operating income/(loss)
 
 
 
 
 
 
 
 
119.2 
64.2 
6.8 
Total assets
663.0 
 
 
 
510.6 
 
 
 
663.0 
510.6 
467.4 
Operating Segments [Member] |
China / Asia Pacific [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
1,129.6 
917.0 
721.4 
Depreciation and amortization expenses
 
 
 
 
 
 
 
 
46.1 
33.8 
23.2 
Income from equity investees
 
 
 
 
 
 
 
 
164.0 
152.0 
122.4 
Operating income/(loss)
 
 
 
 
 
 
 
 
372.5 
321.2 
252.6 
Total assets
939.8 
 
 
 
805.0 
 
 
 
939.8 
805.0 
656.6 
Operating Segments [Member] |
Channel Development [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
1,546.0 
1,398.9 
1,273.0 
Depreciation and amortization expenses
 
 
 
 
 
 
 
 
1.8 
1.1 
1.3 
Income from equity investees
 
 
 
 
 
 
 
 
100.6 
96.6 
85.2 
Operating income/(loss)
 
 
 
 
 
 
 
 
557.2 
415.5 
340.4 
Total assets
84.6 
 
 
 
89.2 
 
 
 
84.6 
89.2 
88.8 
Operating Segments [Member] |
All Other Segments [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
496.9 
390.1 
205.1 
Depreciation and amortization expenses
 
 
 
 
 
 
 
 
15.2 
11.7 
2.5 
Income from equity investees
 
 
 
 
 
 
 
 
0 
0 
0.7 
Operating income/(loss)
 
 
 
 
 
 
 
 
(26.8)
(34.5)
(27.4)
Total assets
$ 825.2 
 
 
 
$ 821.1 
 
 
 
$ 825.2 
$ 821.1 
$ 80.8 
Segment Reporting (Reconciliation of Total Segment Operating Income to Consolidated Earnings Before Income Taxes) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Sep. 28, 2014
Jun. 29, 2014
Mar. 30, 2014
Dec. 29, 2013
Sep. 29, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 30, 2012
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Operating income/(loss)
$ 854.9 
$ 768.5 
$ 644.1 
$ 813.5 
$ (2,115.2)1
$ 615.2 
$ 544.1 
$ 630.6 
$ 3,081.1 
$ (325.4)1
$ 1,997.4 
Interest income and other, net
 
 
 
 
72.1 
3.5 
50.8 
(2.9)
142.7 
123.6 
94.4 
Interest expense
 
 
 
 
(9.1)
(6.3)
(6.1)
(6.6)
(64.1)
(28.1)
(32.7)
Earnings/(loss) before income taxes
 
 
 
 
(2,052.2)
612.4 
588.8 
621.1 
3,159.7 
(229.9)
2,059.1 
Litigation charge
 
 
 
 
(2,784.1)
0 
0 
0 
20.2 
(2,784.1)
0 
Operating Segments [Member]
 
 
 
 
 
 
 
 
 
 
 
Operating income/(loss)
 
 
 
 
 
 
 
 
3,831.1 
3,131.6 
2,592.8 
Corporate, Non-Segment [Member]
 
 
 
 
 
 
 
 
 
 
 
Operating income/(loss)
 
 
 
 
 
 
 
 
$ (750.0)
$ (3,457.0)2
$ (595.4)
Selected Quarterly Financial Information (Schedule of Selected Quarterly Financial Information)(Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Sep. 28, 2014
Jun. 29, 2014
Mar. 30, 2014
Dec. 29, 2013
Sep. 29, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 30, 2012
Sep. 28, 2014
Sep. 29, 2013
Sep. 30, 2012
Selected Quarterly Financial Information [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
$ 4,180.8 
$ 4,153.7 
$ 3,873.8 
$ 4,239.6 
$ 3,788.8 1
$ 3,735.3 1
$ 3,549.6 1
$ 3,793.2 1
$ 16,447.8 
$ 14,866.8 1
$ 13,276.8 
Operating income/(loss)
854.9 
768.5 
644.1 
813.5 
(2,115.2)2
615.2 
544.1 
630.6 
3,081.1 
(325.4)2
1,997.4 
Net earnings/(loss) attributable to Starbucks
587.9 
512.6 
427.0 
540.7 
(1,232.0)2
417.8 
390.4 
432.2 
2,068.1 
8.3 2
1,383.8 
EPS - diluted
$ 0.77 
$ 0.67 
$ 0.56 
$ 0.71 
$ (1.64)2
$ 0.55 
$ 0.51 
$ 0.57 
$ 2.71 
$ 0.01 2
$ 1.79 
Reclassification resulting from correction of an immaterial error
 
 
 
 
6.2 
6.4 
6.3 
6.4 
 
25.4 
22.7 
Litigation charge
 
 
 
 
$ 2,784.1 
 
 
 
 
 
 
Subsequent Event (Narrative) (Details) (Starbucks Coffee Japan Ltd Member)
In Millions, unless otherwise specified
0 Months Ended 2 Months Ended 3 Months Ended 12 Months Ended
Sep. 28, 2014
Oct. 31, 2014
Subsequent Event [Member]
USD ($)
Oct. 31, 2014
Subsequent Event [Member]
JPY (¥)
Nov. 14, 2014
Subsequent Event [Member]
USD ($)
Dec. 28, 2014
Subsequent Event [Member]
Nov. 10, 2014
Subsequent Event [Member]
Oct. 31, 2014
Subsequent Event [Member]
Sep. 27, 2015
Subsequent Event [Member]
Scenario, Forecast [Member]
USD ($)
Sep. 27, 2015
Subsequent Event [Member]
Scenario, Forecast [Member]
JPY (¥)
Subsequent Event [Line Items]
 
 
 
 
 
 
 
 
 
Existing ownership percentage in Starbucks Japan
39.50% 
 
 
 
 
 
 
 
 
Remaining ownership interest in Starbucks Japan to be acquired
60.50% 
 
 
 
 
 
 
 
 
Reason for acquisition
 
 
 
 
We are acquiring Starbucks Japan to further leverage our existing infrastructure to continue disciplined retail store growth and expand our presence into other channels in the Japan market, such as CPG, licensing and foodservice 
 
 
 
 
Acquisition date
 
Oct. 31, 2014 
Oct. 31, 2014 
 
 
 
 
 
 
Ownership interest in Starbucks Japan acquired through first tender offer step
 
 
 
 
 
 
39.50% 
 
 
Cash paid to acquire additional ownership interest in Starbucks Japan
 
$ 511.0 
¥ 55,000.0 
 
 
 
 
$ 382.0 
¥ 44,500.0 
Ownership interest in Starbucks Japan after first tender offer step
 
 
 
 
 
 
79.00% 
 
 
Remaining interest of minority shareholders' to be acquired
 
 
 
 
 
21.00% 
 
 
 
Ownership interest after conclusion of cash-out procedure
 
 
 
 
 
 
 
100.00% 
100.00% 
Reference conversion rate
 
 
 
116.52 
 
 
 
 
 
Acquisition-related costs incurred
 
 
 
$ 5