STARBUCKS CORP, 10-K filed on 11/17/2017
Annual Report
Document And Entity Information (USD $)
In Billions, except Share data in Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2017
Nov. 10, 2017
Apr. 2, 2017
Document And Entity Information [Abstract]
 
 
 
Document Type
10-K 
 
 
Amendment Flag
false 
 
 
Document Period End Date
Oct. 01, 2017 
 
 
Document Fiscal Year Focus
2017 
 
 
Document Fiscal Period Focus
FY 
 
 
Entity Registrant Name
STARBUCKS CORP 
 
 
Entity Central Index Key
0000829224 
 
 
Current Fiscal Year End Date
--10-01 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Public Float
 
 
$ 82 
Entity Common Stock, Shares Outstanding
 
1,422.8 
 
Consolidated Statements of Earnings (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
Net Revenues:
 
 
 
Total net revenues
$ 22,386.8 
$ 21,315.9 
$ 19,162.7 
Cost of sales including occupancy costs
9,038.2 
8,511.1 
7,787.5 
Store operating expenses
6,493.3 
6,064.3 
5,411.1 
Other operating expenses
553.8 
545.4 
522.4 
Depreciation and amortization expenses
1,011.4 
980.8 
893.9 
General and administrative expenses
1,393.3 
1,360.6 
1,196.7 
Total operating expenses
18,643.5 
17,462.2 
15,811.6 
Income from equity investees
391.4 
318.2 
249.9 
Operating income
4,134.7 
4,171.9 
3,601.0 
Gain resulting from acquisition of joint venture
0 
0 
390.6 
Loss on extinguishment of debt
0 
0 
(61.1)
Interest income and other, net
275.3 
108.0 
43.0 
Interest expense
(92.5)
(81.3)
(70.5)
Earnings before income taxes
4,317.5 
4,198.6 
3,903.0 
Income tax expense
1,432.6 
1,379.7 
1,143.7 
Net earnings including noncontrolling interests
2,884.9 
2,818.9 
2,759.3 
Net earnings/(loss) attributable to noncontrolling interests
0.2 
1.2 
1.9 
Net earnings attributable to Starbucks
2,884.7 
2,817.7 
2,757.4 
Earnings per share - basic
$ 1.99 
$ 1.91 
$ 1.84 
Earnings per share - diluted
$ 1.97 
$ 1.90 
$ 1.82 
Weighted average shares outstanding:
 
 
 
Basic
1,449.5 
1,471.6 
1,495.9 
Diluted
1,461.5 
1,486.7 
1,513.4 
Restructuring Charges
153.5 
0 
0 
Company-operated stores [Member]
 
 
 
Net Revenues:
 
 
 
Total net revenues
17,650.7 
16,844.1 
15,197.3 
Licensed stores [Member]
 
 
 
Net Revenues:
 
 
 
Total net revenues
2,355.0 
2,154.2 
1,861.9 
CPG, foodservice and other [Member]
 
 
 
Net Revenues:
 
 
 
Total net revenues
$ 2,381.1 
$ 2,317.6 
$ 2,103.5 
Consolidated Statements of Comprehensive Income (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
Net earnings including noncontrolling interests
$ 2,884.9 
$ 2,818.9 
$ 2,759.3 
Other comprehensive income/(loss), net of tax:
 
 
 
Other comprehensive income/(loss)
(47.2)
91.0 
(224.7)
Comprehensive income including noncontrolling interests
2,837.7 
2,909.9 
2,534.6 
Comprehensive income/(loss) attributable to noncontrolling interests
0.2 
1.2 
(29.2)
Comprehensive income attributable to Starbucks
2,837.5 
2,908.7 
2,563.8 
Available-for-sale Securities [Member]
 
 
 
Other comprehensive income/(loss), net of tax:
 
 
 
Unrealized holding gains/(losses) on available-for-sale securities, before tax
(9.5)
3.5 
1.4 
Unrealized holding gains/(losses) on available-for-sale securities, tax (expense)/benefit
2.9 
(1.3)
(0.5)
Cash Flow Hedging [Member]
 
 
 
Other comprehensive income/(loss), net of tax:
 
 
 
Unrealized gains/(losses) on hedging instruments, before tax
53.2 
(109.6)
47.6 
Unrealized gains/(losses) on hedging instruments, tax (expense)/benefit
(12.6)
27.5 
(16.8)
Net Investment Hedges [Member]
 
 
 
Other comprehensive income/(loss), net of tax:
 
 
 
Unrealized gains/(losses) on hedging instruments, before tax
20.1 
0 
4.3 
Unrealized gains/(losses) on hedging instruments, tax (expense)/benefit
(7.4)
0 
(1.6)
Translation Adjustment [Member]
 
 
 
Other comprehensive income/(loss), net of tax:
 
 
 
Translation adjustment and other, before tax
(38.3)
85.5 
(222.7)
Translation adjustment and other, tax (expense)/benefit
(2.4)
19.0 
6.0 
Other comprehensive income/(loss)
(41.3)
104.5 
(171.3)
Reclassification out of Accumulated Other Comprehensive Income [Member]
 
 
 
Other comprehensive income/(loss), net of tax:
 
 
 
Reclassification adjustment for net gains (losses) realized in net earnings for available-for-sale securities, hedging instruments, and translation adjustment, before tax
(67.2)
78.2 
(65.9)
Reclassification adjustment for net gains (losses) realized in net earnings for available-for-sale securities, hedging instruments, and translation adjustment, tax expense/(benefit)
$ 14.0 
$ (11.8)
$ 23.5 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Oct. 1, 2017
Oct. 2, 2016
Current assets:
 
 
Cash and cash equivalents
$ 2,462.3 
$ 2,128.8 
Short-term investments
228.6 
134.4 
Accounts receivable, net
870.4 
768.8 
Inventories
1,364.0 
1,378.5 
Prepaid expenses and other current assets
358.1 
347.4 
Total current assets
5,283.4 
4,757.9 
Long-term investments
542.3 
1,141.7 
Equity and cost investments
481.6 
354.5 
Property, plant and equipment, net
4,919.5 
4,533.8 
Deferred income taxes, net
795.4 
885.4 
Other long-term assets
362.8 
403.3 
Other intangible assets
441.4 
516.3 
Goodwill
1,539.2 
1,719.6 
TOTAL ASSETS
14,365.6 
14,312.5 
Current liabilities:
 
 
Accounts payable
782.5 
730.6 
Accrued liabilities
1,934.5 
1,999.1 
Insurance reserves
215.2 
246.0 
Stored value card liability
1,288.5 
1,171.2 
Current portion of long-term debt
0 
399.9 
Total current liabilities
4,220.7 
4,546.8 
Long-term debt
3,932.6 
3,185.3 
Other long-term liabilities
755.3 
689.7 
Total liabilities
8,908.6 
8,421.8 
Shareholders' equity:
 
 
Common stock ($0.001 par value) - authorized, 2,400.0 shares; issued and outstanding, 1,460.5 and 1,485.1 shares, respectively
1.4 
1.5 
Additional paid-in capital
41.1 
41.1 
Retained earnings
5,563.2 
5,949.8 
Accumulated other comprehensive income/(loss)
(155.6)
(108.4)
Total shareholders' equity
5,450.1 
5,884.0 
Noncontrolling interests
6.9 
6.7 
Total equity
5,457.0 
5,890.7 
TOTAL LIABILITIES AND EQUITY
$ 14,365.6 
$ 14,312.5 
Consolidated Balance Sheets (Parenthetical) (USD $)
Oct. 1, 2017
Oct. 2, 2016
Statement of Financial Position [Abstract]
 
 
Common stock, par value
$ 0.001 
$ 0.001 
Common stock, shares authorized
2,400,000,000 
2,400,000,000 
Common stock, shares issued
1,431,600,000 
1,460,500,000 
Common stock, shares outstanding
1,431,600,000 
1,460,500,000 
Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
OPERATING ACTIVITIES:
 
 
 
Net earnings including noncontrolling interests
$ 2,884.9 
$ 2,818.9 
$ 2,759.3 
Adjustments to reconcile net earnings to net cash provided by operating activities:
 
 
 
Depreciation and amortization
1,067.1 
1,030.1 
933.8 
Deferred income taxes, net
95.1 
265.7 
21.2 
Income earned from equity method investees
(310.2)
(250.2)
(190.2)
Distributions received from equity method investees
186.6 
223.3 
148.2 
Deconsolidation, Gain (Loss), Amount
93.5 
6.1 
 
Gain resulting from acquisition/sale of equity in joint ventures and certain retail operations
 
 
(394.3)
Loss on extinguishment of debt
0 
0 
61.1 
Stock-based compensation
176.0 
218.1 
209.8 
Excess tax benefit on share-based awards
(77.5)
(122.8)
(132.4)
Goodwill, Impairment Loss
87.2 
0 
0 
Other
68.9 
45.1 
53.8 
Cash provided/(used) by changes in operating assets and liabilities:
 
 
 
Accounts receivable
(96.8)
(55.6)
(82.8)
Inventories
14.0 
(67.5)
(207.9)
Accounts payable
46.4 
46.9 
137.7 
Stored value card liability
130.8 
180.4 
170.3 
Other operating assets and liabilities
(4.7)
248.8 
261.5 
Net cash provided by operating activities
4,174.3 
4,575.1 
3,749.1 
INVESTING ACTIVITIES:
 
 
 
Purchases of investments
(674.4)
(1,585.7)
(567.4)
Proceeds from Sale and Maturity of Available-for-sale Securities
1,054.5 
 
 
Sales of investments
999.7 
680.7 
600.6 
Maturities and calls of investments
149.6 
27.9 
18.8 
Acquisitions, net of cash acquired
0 
0 
(284.3)
Additions to property, plant and equipment
(1,519.4)
(1,440.3)
(1,303.7)
Net proceeds from sale of equity in joint ventures and certain retail operations
85.4 
69.6 
8.9 
Other
54.3 
24.9 
6.8 
Net cash used by investing activities
(850.0)
(2,222.9)
(1,520.3)
FINANCING ACTIVITIES:
 
 
 
Proceeds from issuance of long-term debt
750.2 
1,254.5 
848.5 
Repayments of long-term debt
(400.0)
0 
(610.1)
Cash used for purchase of non-controlling interest
0 
0 
(360.8)
Proceeds from issuance of common stock
150.8 
160.7 
191.8 
Excess tax benefit on share-based awards
77.5 
122.8 
132.4 
Cash dividends paid
(1,450.4)
(1,178.0)
(928.6)
Repurchase of common stock
(2,042.5)
(1,995.6)
(1,436.1)
Minimum tax withholdings on share-based awards
(82.8)
(106.0)
(75.5)
Other
(4.4)
(8.4)
(18.1)
Net cash used by financing activities
(3,001.6)
(1,750.0)
(2,256.5)
Effect of exchange rate changes on cash and cash equivalents
10.8 
(3.5)
(150.6)
Net increase/(decrease) in cash and cash equivalents
333.5 
598.7 
(178.3)
CASH AND CASH EQUIVALENTS:
 
 
 
Beginning of period
2,128.8 
1,530.1 
1,708.4 
End of period
2,462.3 
2,128.8 
1,530.1 
Cash paid during the period for:
 
 
 
Interest, net of capitalized interest
96.6 
74.7 
69.5 
Income taxes, net of refunds
$ 1,389.1 
$ 878.7 
$ 1,072.2 
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 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 
 
 
 
 
 
Net earnings
2,759.3 
0 
0 
2,757.4 
0 
2,757.4 
1.9 
Other comprehensive income/(loss)
(224.7)
 
 
 
(193.6)
(193.6)
(31.1)
Stock-based compensation expense
211.7 
0 
211.7 
0 
0 
211.7 
0 
Exercise of stock options/vesting of RSUs, including tax benefit, Shares
 
14.6 
 
 
 
 
 
Exercise of stock options/vesting of RSUs, including tax benefit, Amount
224.4 
0 
224.4 
0 
0 
224.4 
0 
Sale of common stock, including tax benefit, Shares
 
0.6 
 
 
 
 
 
Sale of common stock, including tax benefit, Amount
23.5 
0 
23.5 
0 
0 
23.5 
0 
Repurchase of common stock, Shares
 
(29.0)
 
 
 
 
 
Repurchase of common stock, Amount
(1,431.8)
0 
(459.6)
(972.2)
0 
(1,431.8)
0 
Cash dividends declared
(1,016.2)
0 
0 
(1,016.2)
0 
(1,016.2)
0 
Two-for-one stock split, Amount
 
749.4 
 
(0.8)
 
 
 
Noncontrolling interest resulting from acquisition
411.1 
 
 
 
 
 
411.1 
Two-for-one stock split, shares
 
0.8 
 
 
 
 
 
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests
(411.1)
 
1.7 
 
(31.1)
(29.4)
(381.7)
Balance, Amount at Sep. 27, 2015
5,819.8 
1.5 
41.1 
5,974.8 
(199.4)
5,818.0 
1.8 
Common stock, Shares at Sep. 27, 2015
 
1,485.1 
 
 
 
 
 
Net earnings
2,818.9 
0 
0 
2,817.7 
0 
2,817.7 
1.2 
Other comprehensive income/(loss)
91.0 
 
 
 
91.0 
91.0 
0 
Stock-based compensation expense
219.6 
0 
219.6 
0 
0 
219.6 
0 
Exercise of stock options/vesting of RSUs, including tax benefit, Shares
 
9.8 
 
 
 
 
 
Exercise of stock options/vesting of RSUs, including tax benefit, Amount
153.0 
0 
153.0 
0 
0 
153.0 
0 
Sale of common stock, including tax benefit, Shares
 
0.5 
 
 
 
 
 
Sale of common stock, including tax benefit, Amount
26.5 
0 
26.5 
0 
0 
26.5 
0 
Repurchase of common stock, Shares
 
(34.9)
 
 
 
 
 
Repurchase of common stock, Amount
(1,995.6)
0 
(399.1)
(1,596.5)
0 
(1,995.6)
0 
Cash dividends declared
(1,246.2)
0 
0 
(1,246.2)
0 
(1,246.2)
0 
Noncontrolling interest resulting from acquisition
3.7 
 
 
 
 
 
3.7 
Balance, Amount at Oct. 02, 2016
5,890.7 
1.5 
41.1 
5,949.8 
(108.4)
5,884.0 
6.7 
Common stock, Shares at Oct. 02, 2016
1,460.5 
1,460.5 
 
 
 
 
 
Net earnings
2,884.9 
0 
0 
2,884.7 
0 
2,884.7 
0.2 
Other comprehensive income/(loss)
(47.2)
 
 
 
(47.2)
(47.2)
0 
Stock-based compensation expense
177.9 
0 
177.9 
0 
0 
177.9 
0 
Exercise of stock options/vesting of RSUs, including tax benefit, Shares
 
8.1 
 
 
 
 
 
Exercise of stock options/vesting of RSUs, including tax benefit, Amount
117.0 
0 
117.0 
0 
0 
117.0 
0 
Sale of common stock, including tax benefit, Shares
0.5 
0.5 
 
 
 
 
 
Sale of common stock, including tax benefit, Amount
28.7 
0 
28.7 
0 
0 
28.7 
0 
Repurchase of common stock, Shares
 
(37.5)
 
 
 
 
 
Repurchase of common stock, Amount
(2,079.1)
(0.1)
(323.6)
(1,755.4)
0 
(2,079.1)
0 
Cash dividends declared
(1,515.9)
0 
0 
(1,515.9)
0 
(1,515.9)
0 
Balance, Amount at Oct. 01, 2017
$ 5,457.0 
$ 1.4 
$ 41.1 
$ 5,563.2 
$ (155.6)
$ 5,450.1 
$ 6.9 
Common stock, Shares at Oct. 01, 2017
1,431.6 
1,431.6 
 
 
 
 
 
Consolidated Statements of Equity (Parenthetical) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 28, 2014
Oct. 1, 2017
Oct. 2, 2016
Statement of Stockholders' Equity [Abstract]
 
 
 
Tax benefit from exercise of stock options/vesting of RSUs
$ 131.3 
$ 0 
$ 124.3 
Tax benefit from sale of common stock
$ 0.2 
$ 0 
$ 0.2 
Cash dividends declared per share
$ 0.680 
$ 0.000 
$ 0.850 
Acquisitions and Divestitures
Acquisitions and Divestitures
Acquisitions and Divestitures
Fiscal 2017
In the fourth quarter of fiscal 2017, we sold our company-operated retail store assets and operations in Singapore to Maxim's Caterers Limited, converting these operations to a fully licensed market, for a total of $119.9 million. This transaction resulted in a pre-tax gain of $83.9 million, which was included in interest income and other, net on our consolidated statements of earnings.
Fiscal 2016
During the third quarter of fiscal 2016, we sold our ownership interest in our Germany retail business to AmRest Holdings SE for a total of $47.3 million. This transaction converted these company-operated stores to a fully licensed market and resulted in an insignificant pre-tax gain, which was included in interest income and other, net on our condensed consolidated statements of earnings.
Fiscal 2015
During the fourth quarter of fiscal 2015, we sold our company-operated retail store assets and operations in Puerto Rico to Baristas Del Caribe, LLC, converting these operations to a fully licensed market, for a total of $8.9 million. This transaction resulted in an insignificant pre-tax gain, which was included in interest income and other, net on the consolidated statements of earnings.
On September 23, 2014, we entered into a tender offer bid agreement with Starbucks Coffee Japan, Ltd. (“Starbucks Japan”), at the time a 39.5% owned equity method investment, and our former joint venture partner, Sazaby League, Ltd. (“Sazaby”), to acquire the remaining 60.5% ownership interest in Starbucks Japan for approximately $876 million, through a two-step tender offer. Acquiring Starbucks Japan further leverages 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.
The following table summarizes the final allocation of the total consideration to the fair values of the assets acquired and liabilities assumed as of October 31, 2014, which are reported within our China/Asia Pacific segment (in millions):
Consideration:
 
 
Cash paid for Sazaby's 39.5% equity interest
 
$
508.7

Fair value of our preexisting 39.5% equity interest
 
577.0

Total consideration
 
$
1,085.7

 
 
 
Fair value of assets acquired and liabilities assumed:
 
 
Cash and cash equivalents
 
$
224.4

Accounts receivable, net
 
37.4

Inventories
 
26.4

Prepaid expenses and other current assets
 
35.7

Property, plant and equipment
 
282.9

Other long-term assets
 
141.4

Other intangible assets
 
323.0

Goodwill
 
815.6

Total assets acquired
 
1,886.8

Accounts payable
 
(54.5
)
Accrued liabilities
 
(115.9
)
Stored value card liability
 
(36.5
)
Deferred income taxes
 
(67.3
)
Other long-term liabilities
 
(115.8
)
Total liabilities assumed
 
(390.0
)
Noncontrolling interest
 
(411.1
)
Total consideration
 
$
1,085.7


Other current and long-term assets acquired primarily include various deposits, specifically lease and key money deposits. Accrued liabilities and other long-term liabilities assumed primarily include financing obligations associated with build-to-suit leases as well as asset retirement obligations.
The intangible assets are finite-lived and include reacquired rights, licensing agreements with Starbucks Japan's current licensees and Starbucks Japan's customer loyalty program. The reacquired rights to exclusively operate licensed Starbucks® retail stores in Japan were assigned a fair value of $305.0 million; these rights will be amortized on a straight-line basis through March 2021. Amortization expense for these finite-lived intangible assets for fiscal year 2017 was $48.4 million, and, as of October 1, 2017, accumulated amortization was $139.1 million. Future amortization expense is estimated to be approximately $47.0 million each year for the next three years, $24.0 million in the fourth year and $5 million thereafter.
The $815.6 million of goodwill represents the intangible assets that do not qualify for separate recognition and primarily includes the acquired customer base, the acquired workforce including store partners in the region that have strong relationships with these customers, the existing geographic retail and online presence, and the expected geographic presence in new channels. The goodwill was allocated to the China/Asia Pacific segment and is not deductible for income tax purposes. Due to foreign currency translation, the balance of goodwill related to the acquisition decreased $32.2 million to $783.4 million as of October 1, 2017.
As a result of this acquisition, we remeasured the carrying value of our preexisting 39.5% equity method investment to fair value, which resulted in a pre-tax gain of $390.6 million that was presented separately as gain resulting from acquisition of joint venture within other income and expenses on the consolidated statements of earnings.
We began consolidating Starbucks Japan's results of operations and cash flows into our consolidated financial statements beginning after October 31, 2014. For the year ended September 27, 2015, Starbucks Japan's net revenues and net earnings included in our consolidated statement of earnings were $1.1 billion and $108.5 million, respectively.
The following table provides the supplemental pro forma revenue and net earnings of the combined entity had the acquisition date of Starbucks Japan been the first day of our first quarter of fiscal 2014 rather than during our first quarter of fiscal 2015 (in millions):
 
 
Pro Forma (unaudited)
 
 
Year Ended
 
 
Sep 27, 2015
Revenue
 
$
19,254.5

Net earnings attributable to Starbucks
 
2,380.9

The amounts in the supplemental pro forma earnings for the period presented above fully eliminate intercompany transactions, apply our accounting policies and reflect adjustments for additional occupancy costs, depreciation and amortization that would have been charged assuming the same fair value adjustments to leases, property, plant and equipment and acquired intangibles had been applied on September 30, 2013, including the acquisition-related gain. These pro forma results are unaudited and are not necessarily indicative of results of operations that would have occurred had the acquisition actually occurred in the prior year period or indicative of the results of operations for any future period.
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 and prepared 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 U.S., Canada, and Latin America; 2) China/Asia Pacific (“CAP”); 3) Europe, Middle East, and Africa (“EMEA”) and 4) Channel Development. We also have several non-reportable operating segments, including Teavana, Seattle's Best Coffee and Evolution Fresh, as well as certain developing businesses such as Siren Retail, which includes the Starbucks ReserveTM Roastery & Tasting Rooms, Starbucks Reserve brand and products and Princi operations, 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.
Principles of Consolidation
Our 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 year 2017 and 2015 included 52 weeks. Fiscal year 2016 included 53 weeks, with the 53rd week falling in the fourth fiscal quarter.
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 business 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 accrued liabilities on our 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 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 and approximates a portion of our liability under our Management Deferred Compensation Plan (“MDCP”). Gains or losses from the portfolio and the change in our MDCP liability are recorded in our consolidated statements of earnings.
Equity and Cost Method Investments
Equity investments are accounted for using the equity method of accounting if the investment gives us the ability to exercise significant influence, but not control, over an investee. Equity method investments are included within long-term investments on our consolidated balance sheets. Our share of the earnings or losses as reported by equity method investees are classified as income from equity investees on our consolidated statements of earnings.
Equity investments for which we do not have the ability to exercise significant influence are accounted for using the cost method of accounting and are recorded in long-term investments on our consolidated balance sheets. Under the cost method, investments are carried at cost and are adjusted only for other-than-temporary declines in fair value, certain distributions and additional 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 U.S. 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 our 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. In order to manage our exposure to these risks, 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. We do not enter into derivative instruments for speculative purposes.
We record all derivatives on our consolidated balance sheets at fair value. Excluding interest rate swaps and foreign currency debt, we generally do not enter into derivative instruments with maturities longer than three years or offset derivative assets and liabilities in our consolidated balance sheets. However, we are allowed to net settle transactions with respective counterparties for certain derivative contracts, inclusive of interest rate swaps and foreign currency forwards, with a single, net amount payable by one party to the other. We also enter into collateral security arrangements that provide for collateral to be received or posted when the net fair value of certain financial instruments fluctuates from contractually established thresholds. As of October 1, 2017 and October 2, 2016, we received and posted $5.8 million and $19.5 million, respectively, of cash collateral related to the derivative instruments under collateral security arrangements. As of October 1, 2017 and October 2, 2016, the potential effects of netting arrangements with our derivative contracts, excluding the effects of collateral, would be a reduction to both derivative assets and liabilities of $7.4 million and $9.4 million, respectively, resulting in net derivative assets of $30.4 million and net derivative liabilities of $31.1 million as of October 1, 2017, and net derivative assets of $24.7 million and net derivative liabilities of $80.2 million as of October 2, 2016.
By using these derivative instruments, we expose ourselves to potential credit risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. We minimize this credit risk by entering into transactions with carefully selected, credit-worthy counterparties and distribute contracts among several financial institutions to reduce the concentration of credit risk.
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 our 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 interest income and other, net on our 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. Once established, cash flow hedges generally remain designated as such until the hedged item impacts net earnings, or the anticipated transaction is no longer likely to occur. For de-designated cash flow hedges or for transactions that are no longer likely to occur, the related accumulated derivative gains or losses are recognized in interest income and other, net or interest expense on our consolidated statements of earnings based on the nature of the underlying transaction.
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 interest income and other, net on our consolidated statements of earnings.
Fair Value Hedges
For derivative instruments that are designated and qualify as a fair value hedge, the changes in fair value of the derivative instruments and the offsetting changes in fair values of the underlying hedged item are recorded in interest income and other, net or interest expense on our 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 interest income and other, net on our 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.
Refer to Note 3, Derivative Financial Instruments, and Note 5, Inventories, for further discussion of our derivative instruments and green coffee purchase commitments.
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 consumer packaged goods (“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 October 1, 2017 and October 2, 2016, our allowance for doubtful accounts was $9.8 million and $9.4 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 October 1, 2017 and October 2, 2016, inventory reserves were $38.4 million and $39.6 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 on our 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 $46.9 million, $25.1 million, and $12.5 million in fiscal 2017, 2016, and 2015, respectively. Additionally, we recognized net impairment charges of $56.1 million, $24.1 million, and $25.8 million in fiscal 2017, 2016, and 2015, respectively, of which $39.9 million in fiscal 2017 were restructuring related and recorded in restructuring and impairment expenses. Unless it is restructuring related, 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 on our 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. For certain reporting units, where deemed appropriate, we may also utilize a market approach for estimating fair value. 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. Due to the strategic decision to close Teavana branded retail stores and our subsequent review of this reporting unit's fair value, we recorded goodwill impairment charges of $69.3 million during the third quarter of fiscal 2017.
Additionally, we recorded a partial goodwill impairment of $17.9 million related to our Switzerland retail reporting unit during the third quarter of fiscal 2017, primarily due to ongoing macro economic factors. There were no material goodwill impairment charges recorded during fiscal 2016 and 2015. Refer to Note 8, Other Intangible Assets and Goodwill, for further discussions.
Other Intangible Assets
Other intangible assets include finite-lived intangible assets, which mainly consist of acquired and reacquired rights, trade secrets, licensing agreements, contract-based patents and copyrights. These assets 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.
Indefinite-lived intangibles, which consist primarily of trade names and trademarks, 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 intangible asset group 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.
There were no significant other intangible asset impairment charges recorded during fiscal 2017, 2016, and 2015.
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. Sales of coffee, tea, food 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 on our 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-, Seattle’s Best Coffee- and Tazo-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-, Seattle’s Best Coffee- and Tazo-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
Stored value cards, primarily Starbucks Cards, can be activated at our company-operated and most licensed store locations, online at StarbucksStore.com or via mobile devices held by our customers, and at certain other third party locations, such as grocery stores, although they cannot be reloaded at these third party locations. When an amount is loaded onto a stored value card at any of these locations, we recognize a corresponding liability for the full amount loaded onto the card, which is recorded within stored value card liability on our consolidated balance sheets.
Stored value cards can be redeemed at company-operated and most licensed stores, as well as online. When a stored value card is redeemed at a company-operated store or online, we recognize revenue by reducing the stored value card liability. When a stored value card is redeemed at a licensed store location, we reduce the corresponding stored value card liability and cash, which is reimbursed to the licensee.
There are no expiration dates on our stored value cards, and in most markets, we do not charge 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, based on historical experience, is deemed 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, unredeemed card balances may then be recognized as breakage income, which is included in interest income and other, net on our consolidated statements of earnings. In fiscal 2017, 2016, and 2015, we recognized breakage income of $104.6 million, $60.5 million, and $39.3 million, respectively.
Loyalty Program
In the U.S. and Canada, effective April 2016, we modified our transaction-based loyalty program, My Starbucks Rewards® to a spend-based program, Starbucks RewardsTM. For fiscal 2016, the existing transaction-based programs remain unchanged for other markets. During fiscal 2017, we launched Starbucks RewardsTM in Japan. Customers in the U.S., Canada, and certain other countries who register their Starbucks Card are automatically enrolled in the program. They earn loyalty points (“Stars”) with each purchase at participating Starbucks® and TeavanaTM stores, as well as on certain packaged coffee products purchased in select Starbucks® stores, online, and through CPG channels. After accumulating a certain number of Stars, the customer earns a reward that can be redeemed for free product that, regardless of where the related Stars were earned within that country, will be honored at company-operated stores and certain participating licensed store locations in that same country.
Regardless of whether it is a spend or transaction-based program, we defer revenue associated with the estimated selling price of Stars earned by our program members towards free product as each Star is earned, and a corresponding liability is established within stored value card liability on our consolidated balance sheets. The estimated selling price of each Star earned is based on the estimated value of the product for which the reward is expected to be redeemed, net of Stars we do not expect to be redeemed, based on historical redemption patterns. Stars generally expire if inactive for a period of six months.
When a customer redeems an earned reward, we recognize revenue for the redeemed product and reduce the related loyalty program liability.
Advertising
We expense most advertising costs as they are incurred, except for certain production costs that are expensed the first time the advertising takes place. Advertising expenses totaled $282.6 million, $248.6 million and $227.9 million in fiscal 2017, 2016, and 2015, respectively.
Store Preopening Expenses
Costs incurred in connection with the start-up and promotion of new store openings are expensed as incurred.
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 our consolidated balance sheets and amortize the deferred rent over the terms of the leases as reductions to rent expense in cost of sales including occupancy costs on our consolidated statements of earnings.
For premiums paid upfront to enter a lease agreement, we record a prepaid rent asset in prepaid expenses and other non-current assets on our consolidated balance sheets and amortize the premium over the terms of the leases as additional rent expense in cost of sales including occupancy costs on our 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 cost of sales including occupancy costs on our consolidated statements of earnings, with the adjustments to cash rent accrued as deferred rent in our consolidated balance sheets.
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 in accrued occupancy costs within accrued liabilities on our consolidated balance sheets and the corresponding rent expense 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, we 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.
Lease Financing Arrangements
We are sometimes involved in the construction of leased buildings, primarily stores. When we qualify as the deemed owner of these buildings due to significant involvement during the construction period under build-to-suit lease accounting requirements and do not qualify for sales recognition under sales-leaseback accounting guidance, we record the cost of the related buildings in property, plant and equipment. The offsetting lease financing obligations are recorded in other long-term liabilities, with the current portion recorded in in accrued occupancy costs within accrued liabilities on our consolidated balance sheets. These assets and obligations are amortized in depreciation and amortization and interest expense, respectively, on our consolidated statements of earnings based on the terms of the related lease agreements.
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 the liability 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 on our consolidated statements of earnings. As of October 1, 2017 and October 2, 2016, our net ARO assets included in property, plant and equipment were $12.4 million and $9.3 million, respectively, and our net ARO liabilities included in other long-term liabilities were $70.0 million and $67.9 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. 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. Compensation expense is recognized over the requisite service period for each separately vesting portion of the award, and only for those awards expected to vest, with forfeitures estimated at the date of grant based on our historical experience and future expectations.
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 our 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 jurisdictions 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 on our consolidated statements of earnings. Accrued interest and penalties are included within the related tax liability on our consolidated balance sheets.
Stock Split
On April 9, 2015, we effected a two-for-one stock split of our $0.001 par value common stock for shareholders of record as of March 30, 2015. All share and per-share data in our consolidated financial statements and notes has been retroactively adjusted to reflect this stock split. We adjusted shareholders' equity to reflect the stock split by reclassifying an amount equal to the par value of the additional shares arising from the split from retained earnings to common stock during the second quarter of fiscal 2015, resulting in no net impact to shareholders' equity on our 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 August 2017, the Financial Accounting Standards Board (“FASB”) amended its guidance on the financial reporting of hedging relationships. The new guidance eliminates the requirement to separately measure and report hedge ineffectiveness, expands permissible cash flow hedges on contractually specified components, and simplifies hedge documentation and effectiveness assessment. The guidance will be effective at the beginning of our first quarter of fiscal year 2020 and will require a modified retrospective approach on existing cash flow and net investment hedges. The presentation and disclosure requirements will be applied prospectively. We are currently evaluating the impact this guidance will have on our consolidated financial statements and the timing of adoption.
In January 2017, the FASB issued guidance that simplifies the measurement of goodwill impairment. Under this new guidance, an impairment charge, if triggered, is calculated as the difference between a reporting unit’s carrying value and fair value, but it is limited to the carrying value of goodwill. During the second quarter of fiscal 2017, we elected to early-adopt this guidance on a prospective basis.
In October 2016, the FASB issued guidance on the accounting for income tax effects of intercompany sales or transfers of assets other than inventory. The guidance requires entities to recognize the income tax impact of an intra-entity sale or transfer of an asset other than inventory when the sale or transfer occurs, rather than when the asset has been sold to an outside party. The guidance will require a modified retrospective application with a cumulative catch-up adjustment to opening retained earnings at the beginning of our first quarter of fiscal 2019 but permits adoption in an earlier period. We are currently evaluating the impact this guidance will have on our consolidated financial statements and the timing of adoption.
In June 2016, the FASB issued guidance on the measurement and recognition of credit losses on most financial assets. For trade receivables, loans, and held-to-maturity debt securities, the current probable loss recognition methodology is being replaced by an expected credit loss model. For available-for-sale debt securities, the recognition model on credit losses is generally unchanged, except the losses will be presented as an adjustable allowance. The guidance will be applied retrospectively with the cumulative effect recognized as of the date of adoption. The guidance will become effective at the beginning of our first quarter of fiscal 2021 but can be adopted as early as the beginning of our first quarter of fiscal 2020. We are currently evaluating the impact this guidance will have on our consolidated financial statements and the timing of adoption.
In March 2016, the FASB issued guidance related to stock-based compensation, which changes the accounting and classification of excess tax benefits and minimum tax withholdings on share-based awards. With this adoption, excess tax benefits and tax deficiencies related to stock-based compensation will be prospectively reflected as a reduction of, or increase in, income tax expense in our consolidated statement of earnings instead of additional paid-in capital on our consolidated balance sheet. Additionally, within our consolidated statement of cash flows, this guidance will require excess tax benefits to be presented as an operating activity, rather than a financing activity, in the same manner as other cash flows related to income taxes. As a result, we expect the adoption will have a significant impact on income tax expense and earnings per share, as reported in our consolidated statement of earnings and consolidated statement of cash flows. We will adopt this guidance in the first quarter of fiscal 2018. If the new guidance had been adopted for fiscal years 2017, 2016 and 2015, approximately $78 million, $125 million and $132 million, respectively, of excess net tax benefits recorded to additional paid-in capital would have been recorded as a reduction to income tax expense. Excess tax benefits or deficiencies are based on our stock price at the time stock options are exercised or when restricted stock units vest, therefore prior year amounts are not indicative of the future impact of this guidance. 
In March 2016, the FASB issued guidance for financial liabilities resulting from selling prepaid stored value products that are redeemable at third-party merchants. Under the new guidance, expected breakage amounts associated with these products must be recognized proportionately in earnings as redemption occurs. Our current accounting policy of applying the remote method to all of our stored value cards, including cards redeemable at the third-party licensed locations, will no longer be allowed. We will adopt and implement the provisions of this guidance and the new revenue recognition standard issued by the FASB, as discussed below, in the first quarter of fiscal 2019.
In February 2016, the FASB issued guidance on the recognition and measurement of leases. Under the new guidance, lessees are required to recognize a lease liability, which represents the discounted obligation to make future minimum lease payments, and a corresponding right-of-use asset on the balance sheet for most leases. The guidance retains the current accounting for lessors and does not make significant changes to the recognition, measurement, and presentation of expenses and cash flows by a lessee. Enhanced disclosures will also be required to give financial statement users the ability to assess the amount, timing and uncertainty of cash flows arising from leases. The guidance will require modified retrospective application at the beginning of our first quarter of fiscal 2020, with optional practical expedients, but permits adoption in an earlier period. We are currently evaluating the impact this guidance will have on our consolidated financial statements. We expect this adoption will result in a material increase in the assets and liabilities on our consolidated balance sheets but will likely have an insignificant impact on our consolidated statements of earnings. In preparation for adoption of the guidance, we are in the process of implementing controls and key system changes to enable the preparation of financial information.
In April 2015, the FASB issued guidance on the financial statement presentation of debt issuance costs. This guidance requires these costs to be presented in the balance sheet as a reduction of the related debt liability rather than as an asset. We retrospectively adopted this guidance in the first quarter of fiscal 2017, which resulted in the reclassification of $17.0 million of debt issuance costs previously presented in prepaid expenses and other current assets and other long-term assets to long-term debt in our consolidated balance sheet as of October 2, 2016. Components of our long-term debt and aggregate debt issuance costs and unamortized premium are disclosed in Note 9, Debt.
In May 2014, the 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. The new guidance may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. We are currently evaluating the overall impact this guidance will have on our consolidated financial statements, as well as the expected method of adoption. Based on our continued assessment, which may identify other accounting impacts, we have determined the adoption will change the timing of recognition and classification of our stored value card breakage income, which is currently recognized using the remote method and recorded in interest income and other, net. The new guidance will require application of the proportional method and classification within total net revenues on our consolidated statements of earnings. Additionally, the new guidance requires enhanced disclosures, including revenue recognition policies to identify performance obligations to customers and significant judgments in measurement and recognition. We will adopt this guidance in the first quarter of fiscal 2019.
Derivative Financial Instruments
Derivative Financial Instruments
Derivative Financial Instruments
Interest Rates
We are subject to interest rate volatility with regard to existing and future issuances of debt. From time to time, we enter into swap agreements to manage our exposure to interest rate fluctuations.
To hedge the variability in cash flows due to changes in benchmark interest rates, we enter into interest rate swap agreements 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. During fiscal 2016, we entered into forward-starting interest rate swap agreements with an aggregate notional amount of $375 million related to the $500 million and $250 million of 5-year 2.100% Senior Notes (the “2021 notes”) due February 2021 and $500 million of 10-year 2.450% Senior Notes (the “2026 notes”) due June 2026. Refer to Note 9, Debt, for details of the components of our long-term debt. We cash settled these swap agreements at the time of pricing the 2021 and 2026 notes.
To hedge the exposure to changes in the fair value of our fixed-rate debt, we enter into interest rate swap agreements, which are designated as fair value hedges. The changes in fair value of these derivative instruments and the offsetting changes in fair values of the underlying hedged debt are recorded in interest expense and have an insignificant impact on our consolidated statement of earnings. We entered into an interest rate swap agreement during the third quarter of fiscal 2017 related to our 3.850% Senior Notes due in October 2023 (“2023 notes”). Refer to Note 9, Debt, for additional information on our long-term 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 intercompany royalty payments, inventory purchases and intercompany borrowing and lending activities. The effective portion of the derivative's gain or loss is recorded in AOCI and is subsequently reclassified to revenue, cost of sales including occupancy costs or interest income and other, net, respectively, when the hedged exposure affects net earnings.
To mitigate foreign currency transaction risk of intercompany borrowings, we enter into cross-currency swap contracts, which are designated as cash flow hedges. Gains and losses from these swaps offset the changes in value of interest and principal payments as a result of changes in foreign exchange rates. There are no credit-risk-related contingent features associated with these swaps, although we may hold or post collateral depending upon the gain or loss position of the swap agreements.
We also enter into forward contracts or use foreign currency-denominated debt to hedge the foreign currency exposure of our net investment in certain international operations. The effective portion of the derivative's gain or loss is recorded in AOCI and is subsequently reclassified to net earnings when the hedged net investment is either sold or substantially liquidated.
To mitigate the foreign exchange risk of certain balance sheet items, we enter into foreign currency forward and 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 interest income and other, net.
Commodities
Depending on market conditions, we may enter into coffee futures contracts and collars 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 each derivative's gain or loss is recorded in AOCI and is subsequently reclassified to cost of sales including occupancy costs when the hedged exposure affects net earnings.
To mitigate the price uncertainty of a portion of our future purchases, primarily of dairy products, diesel fuel and other commodities, we enter into swap contracts, futures and collars that are not designated as hedging instruments. Gains and losses from these derivatives are recorded in interest income and other, net and help offset price fluctuations on our beverage, food, packaging and transportation costs, which are included in cost of sales including occupancy costs on our consolidated statements of earnings.
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)
 
Oct 1,
2017
 
Oct 2,
2016
 
Sep 27,
2015
 
 
Cash Flow Hedges:
 
 
 
 
 
 
 
 
 
Interest rates
$
17.6

 
$
20.5

 
$
30.1

 
$
3.0

 
0
Cross-currency swaps
(6.0
)
 
(7.7
)
 
(27.8
)
 
—

 
86
Foreign currency - other
(9.1
)
 
(0.4
)
 
29.0

 
(5.8
)
 
36
Coffee
(6.6
)
 
(1.6
)
 
(5.7
)
 
(6.6
)
 
4
Net Investment Hedges:
 
 
 
 
 
 
 
 
 
Foreign currency
16.2

 
1.3

 
1.3

 
0.1

 
0
Foreign currency debt
(2.2
)
 
—

 
—

 
—

 
79

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
 
Oct 1,
2017
 
Oct 2,
2016
 
Sep 27,
2015
 
Oct 1,
2017
 
Oct 2,
2016
 
Sep 27,
2015
Cash Flow Hedges:
 
 
 
 
 
 
 
 
 
 
 
Interest rates
$
—

 
$
(10.3
)
 
$
(6.8
)
 
$
4.8

 
$
5.0

 
$
3.2

Cross-currency swaps
59.5

 
(75.7
)
 
11.4

 
57.2

 
(101.1
)
 
46.2

Foreign currency - other
1.8

 
(25.4
)
 
52.0

 
11.4

 
19.1

 
26.1

Coffee
(8.1
)
 
1.7

 
(9.0
)
 
(2.7
)
 
(2.8
)
 
(3.5
)
Net Investment Hedges:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency
23.6

 
—

 
4.3

 
—

 
—

 
7.2

Foreign currency debt
(3.5
)
 
—

 
—

 
—

 
—

 
—



Pretax gains and losses on non-designated derivatives and designated fair value hedging instruments recognized in earnings (in millions):
 
Gains/(Losses) Recognized in Earnings
 
Oct 1, 2017
 
Oct 2, 2016
 
Sep 27, 2015
Non-Designated Derivatives:
 
 
 
 
 
Foreign currency - other
$
4.6

 
$
(5.7
)
 
$
27.1

Dairy
—

 
(5.5
)
 
(3.8
)
Diesel fuel and other commodities
1.3

 
(0.2
)
 
(9.0
)
Designated Fair Value Hedging Instruments:
 
 
 
 
 
Interest rate swap
(5.2
)
 
—

 
—


Notional amounts of outstanding derivative contracts (in millions):
 
Oct 1, 2017
 
Oct 2, 2016
Interest rate swap
$
750

 
$
—

Cross-currency swaps
514

 
660

Foreign currency - other
901

 
688

Coffee
—

 
7

Dairy
14

 
76

Diesel fuel and other commodities
41

 
46


Fair value of outstanding derivative contracts (in millions):
 
Derivative Assets
 
Derivative Liabilities
 
Oct 1, 2017
 
Oct 2, 2016
 
Oct 1, 2017
 
Oct 2, 2016
Designated Derivative Instruments:
 
 
 
 
 
 
 
Cross-currency swaps
$
12.4

 
$
—

 
$
9.8

 
$
57.0

Foreign currency - other
7.7

 
20.8

 
20.8

 
24.0

Coffee
—

 
1.8

 
—

 
—

Net investment hedges
0.3

 
—

 
—

 
—

Interest rate swap
—

 
—

 
3.8

 
—

Non-designated Derivative Instruments:
 
 
 
 
 
 
 
Foreign currency
15.8

 
6.2

 
1.4

 
6.5

Dairy
—

 
1.5

 
2.4

 
1.6

Diesel fuel and other commodities
1.6

 
3.8

 
0.3

 
0.5


Additional disclosures related to cash flow hedge gains and losses included in AOCI, 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
Oct 1, 2017
 
Quoted Prices
in Active
Markets for 
Identical Assets
(Level 1)
 
Significant 
Other Observable 
Inputs
(Level 2)
 
Significant
Unobservable  Inputs
(Level 3)
Assets:
 
 
 
 
 
 
 
Cash and cash equivalents
$
2,462.3

 
$
2,462.3

 
$
—

 
$
—

Short-term investments:
 
 
 
 
 
 
 
Available-for-sale securities
 
 
 
 
 
 
 
Agency obligations
7.5

 
—

 
7.5

 
—

Commercial paper
2.0

 
—

 
2.0

 
—

Corporate debt securities
49.4

 
—

 
49.4

 
—

Foreign government obligations
7.1

 
—

 
7.1

 
—

U.S. government treasury securities
81.4

 
81.4

 
—

 
—

Mortgage and other asset-backed securities
2.0

 
—

 
2.0

 
—

Certificates of deposit
2.3

 
—

 
2.3

 
—

Total available-for-sale securities
151.7

 
81.4

 
70.3

 
—

Trading securities
76.9

 
76.9

 
—

 
—

Total short-term investments
228.6

 
158.3

 
70.3

 
—

Prepaid expenses and other current assets:
 
 
 
 
 
 
 
Derivative assets
13.4

 
0.1

 
13.3

 
—

Long-term investments:
 
 
 
 
 
 
 
Available-for-sale securities
 
 
 
 
 
 
 
Agency obligations
21.8

 
—

 
21.8

 
—

Corporate debt securities
207.4

 
—

 
207.4

 
—

Auction rate securities
5.9

 
—

 
—

 
5.9

Foreign government obligations
17.1

 
—

 
17.1

 
—

U.S. government treasury securities
127.4

 
127.4

 
—

 
—

State and local government obligations
7.0

 
—

 
7.0

 
—

Mortgage and other asset-backed securities
155.7

 
—

 
155.7

 
—

Total long-term investments
542.3

 
127.4

 
409.0

 
5.9

Other long-term assets:
 
 
 
 
 
 
 
Derivative assets
24.4

 
—

 
24.4

 
—

Total assets
$
3,271.0

 
$
2,748.1

 
$
517.0

 
$
5.9

Liabilities:
 
 
 
 
 
 
 
Accrued liabilities:
 
 
 
 
 
 
 
Derivative liabilities
$
16.4

 
$
2.5

 
$
13.9

 
$
—

Other long-term liabilities:
 
 
 
 
 
 
 
Derivative liabilities
22.1

 
—

 
22.1

 
—

Total liabilities
$
38.5

 
$
2.5

 
$
36.0

 
$
—

 
 
 
 
Fair Value Measurements at Reporting Date Using
 
Balance at
Oct 2, 2016
 
Quoted Prices
in Active
Markets for 
Identical Assets
(Level 1)
 
Significant 
Other Observable 
Inputs
(Level 2)
 
Significant
Unobservable  Inputs
(Level 3)
Assets:
 
 
 
 
 
 
 
Cash and cash equivalents
$
2,128.8

 
$
2,128.8

 
$
—

 
$
—

Short-term investments:
 
 
 
 
 
 
 
Available-for-sale securities
 
 
 
 
 
 
 
Agency obligations
1.3

 
—

 
1.3

 
—

Commercial paper
2.6

 
—

 
2.6

 
—

Corporate debt securities
34.2

 
—

 
34.2

 
—

Foreign government obligations
5.5

 
—

 
5.5

 
—

U.S. government treasury securities
15.8

 
15.8

 
—

 
—

State and local government obligations
0.5

 
—

 
0.5

 
—

Certificates of deposit
5.8

 
—

 
5.8

 
—

Total available-for-sale securities
65.7

 
15.8

 
49.9

 
—

Trading securities
68.7

 
68.7

 
—

 
—

Total short-term investments
134.4

 
84.5

 
49.9

 
—

Prepaid expenses and other current assets:
 
 
 
 
 
 
 
Derivative assets
27.7

 
3.1

 
24.6

 
—

Long-term investments:
 
 
 
 
 
 
 
Available-for-sale securities
 
 
 
 
 
 
 
Agency obligations
44.4

 
—

 
44.4

 
—

Corporate debt securities
459.3

 
—

 
459.3

 
—

Auction rate securities
5.7

 
—

 
—

 
5.7

Foreign government obligations
46.7

 
—

 
46.7

 
—

U.S. government treasury securities
358.2

 
358.2

 
—

 
—

State and local government obligations
57.5

 
—

 
57.5

 
—

Mortgage and other asset-backed securities
169.9

 
—

 
169.9

 
—

Total long-term investments
1,141.7

 
358.2

 
777.8

 
5.7

Other long-term assets:
 
 
 
 
 
 
 
Derivative assets
6.4

 
—

 
6.4

 
—

Total assets
$
3,439.0

 
$
2,574.6

 
$
858.7

 
$
5.7

Liabilities:
 
 
 
 
 
 
 
Accrued liabilities:
 
 
 
 
 
 
 
Derivative liabilities
$
18.0

 
$
1.7

 
$
16.3

 
$
—

Other long-term liabilities:
 
 
 
 
 
 
 
Derivative liabilities
71.6

 
—

 
71.6

 
—

Total
$
89.6

 
$
1.7

 
$
87.9

 
$
—


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 generally mature within 5 years. Proceeds from sales of available-for-sale securities were $999.7 million, $680.7 million, and $600.6 million for fiscal years 2017, 2016 and 2015, respectively. Realized gains and losses on sales and maturities of available-for-sale securities were not material for fiscal years 2017, 2016, and 2015. Gross unrealized holding gains and losses on available-for-sale securities were not material as of October 1, 2017 and October 2, 2016.

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 $105.9 million and $101.5 million as of October 1, 2017 and October 2, 2016, respectively. The changes in net unrealized holding gains and losses in the trading securities portfolio included in earnings for fiscal years 2017 and 2016 were net gains of $10.5 million and $3.6 million and a net loss of $4.5 million in fiscal year 2015. Gross unrealized holding gains and losses on trading securities were not material as of October 1, 2017 and October 2, 2016.
Derivative Assets and Liabilities
Derivative assets and liabilities include foreign currency forward contracts, commodity futures contracts, collars and swaps, which are described further in Note 3, Derivative Financial Instruments.
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.
Other than the impairments discussed in Note 8, Other Intangible Assets and Goodwill, and the aforementioned fair value adjustments, there were no other material fair value adjustments during fiscal 2017 and 2016.
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)
 
Oct 1, 2017
 
Oct 2, 2016
Coffee:
 
 
 
Unroasted
$
541.0

 
$
561.6

Roasted
301.1

 
300.4

Other merchandise held for sale
301.1

 
308.6

Packaging and other supplies
220.8

 
207.9

Total
$
1,364.0

 
$
1,378.5


Other merchandise held for sale includes, among other items, serveware and tea. Inventory levels vary due to seasonality, commodity market supply and price fluctuations.
As of October 1, 2017, we had committed to purchasing green coffee totaling $860 million under fixed-price contracts and an estimated $336 million under price-to-be-fixed contracts. As of October 1, 2017, none of our price-to-be-fixed contracts were effectively fixed through the use of futures contracts. Price-to-be-fixed contracts are purchase commitments whereby the quality, quantity, delivery period and other negotiated terms are agreed upon, but the date, and therefore the price, at which the base “C” coffee commodity price component will be fixed has not yet been established. For most contracts, either Starbucks or the seller has the option to “fix” the base “C” coffee commodity price prior to the delivery date. For other contracts, Starbucks and the seller may agree upon pricing parameters determined by the base “C” coffee commodity price. Until prices are fixed, we estimate the total cost of these purchase commitments. We believe, based on relationships established with our suppliers in the past, the risk of non-delivery on these purchase commitments is remote.
Equity and Cost Investments
Equity and Cost Investments
Equity and Cost Investments (in millions)
 
Oct 1,
2017
 
Oct 2,
2016
Equity method investments
$
432.8

 
$
305.7

Cost method investments
48.8

 
48.8

Total
$
481.6

 
$
354.5


Equity Method Investments
As of October 1, 2017, we had a 50% ownership interest in each of the following international equity method investees: President Starbucks Coffee (East China); Starbucks Coffee Korea Co., Ltd.; President Starbucks Coffee Corporation (Taiwan) Company Limited; and Tata Starbucks Limited (India). These international entities operate licensed Starbucks® retail stores. We further describe the pending transactions to acquire East China and to divest Taiwan in Note 15, Commitments and Contingencies.
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® Iced Espresso Classics.
In the first quarter of fiscal 2016, we sold our 49% ownership interest in our Spanish joint venture, Starbucks Coffee España, S.L. (“Starbucks Spain”), to our joint venture partner, Sigla S.A. (Grupo Vips), for a total purchase price of $30.2 million. This transaction resulted in an insignificant pre-tax gain, which was included in interest income and other, net on our consolidated statements of earnings.
Our share of income and losses from our equity method investments is included in income from equity investees on our 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 $187.3 million, $164.2 million, and $153.4 million in fiscal years 2017, 2016 and 2015, respectively. Related costs of sales were $109.3 million, $97.5 million, and $94.5 million in fiscal years 2017, 2016 and 2015, respectively. As of October 1, 2017 and October 2, 2016, there were $54.3 million and $55.7 million of accounts receivable from equity investees, respectively, on our consolidated balance sheets, primarily related to product sales and royalty revenues.
Cost Method Investments
As of October 1, 2017 and October 2, 2016, we had $23 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 application of the equity method of accounting.
Supplemental Balance Sheet Information
Supplemental Balance Sheet Information
 Supplemental Balance Sheet Information (in millions)
Property, Plant and Equipment, net
 
Oct 1, 2017
 
Oct 2, 2016
Land
$
46.9

 
$
46.6

Buildings
481.7

 
458.4

Leasehold improvements
6,401.0

 
5,892.9

Store equipment
2,110.7

 
1,931.7

Roasting equipment
619.8

 
605.4

Furniture, fixtures and other
1,514.1

 
1,366.9

Work in progress
409.8

 
271.4

Property, plant and equipment, gross
11,584.0

 
10,573.3

Accumulated depreciation
(6,664.5
)
 
(6,039.5
)
Property, plant and equipment, net
$
4,919.5

 
$
4,533.8


Accrued Liabilities
 
Oct 1, 2017
 
Oct 2, 2016
Accrued compensation and related costs
$
524.5

 
$
510.8

Accrued occupancy costs
151.3

 
137.5

Accrued taxes
226.6

 
368.4

Accrued dividends payable
429.5

 
365.1

Accrued capital and other operating expenditures
602.6

 
617.3

Total accrued liabilities
$
1,934.5

 
$
1,999.1

Other Intangible Assets and Goodwill
Other Intangible Assets and Goodwill
Other Intangible Assets and Goodwill
Indefinite-Lived Intangible Assets
(in millions)
Oct 1, 2017
 
Oct 2, 2016
Trade names, trademarks and patents
$
212.1

 
$
207.8

Other indefinite-lived intangible assets
15.1

 
15.1

Total indefinite-lived intangible assets
$
227.2

 
$
222.9


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
 
China/Asia Pacific
 
EMEA
 
Channel
Development
 
All Other Segments
 
Total
Goodwill balance at September 27, 2015
$
211.2

 
$
804.1

 
$
57.4

 
$
23.8

 
$
478.9

 
$
1,575.4

Acquisition/(divestiture)
—

 
—

 
(2.6
)
 
—

 
5.3

 
2.7

Other
0.4

 
140.8

 
0.3

 
—

 
—

 
141.5

Goodwill balance at October 2, 2016
$
211.6

 
$
944.9

 
$
55.1

 
$
23.8

 
$
484.2

 
$
1,719.6

Acquisition/(divestiture)
—

 
(7.6
)
 
—

 
—

 
—

 
(7.6
)
Impairment
—

 
—

 
(17.9
)
 
—

 
(69.3
)
 
(87.2
)
Other
1.5

 
(87.1
)
 
—

 
—

 
—

 
(85.6
)
Goodwill balance at October 1, 2017
$
213.1

 
$
850.2

 
$
37.2

 
$
23.8

 
$
414.9

 
$
1,539.2


“Other” primarily consists of changes in the goodwill balance as a result of foreign currency translation.

During the third quarter of fiscal 2017, management finalized its long-term strategy for the Teavana reporting unit. The plan emphasizes sales of premium Teavana™ tea products at Starbucks branded stores and, to a lesser extent, consumer product channels. The existing portfolio of Teavana-branded retail stores are expected to be closed over the next several quarters. This change in strategic direction triggered an impairment test first of the retail store assets and then an impairment test of the goodwill asset, which also coincided with our annual goodwill testing process. For goodwill, we utilized a combination of income and market approaches to determine the implied fair value of the reporting unit. These approaches used primarily unobservable inputs, including discount, sales growth and royalty rates and valuation multiples of a selection of similar publicly traded companies, which are considered Level 3 fair value measurements. We then compared the implied fair value with the carrying value and recognized a goodwill impairment charge of $69.3 million, thus reducing goodwill of the Teavana reporting unit to $398.3 million as of October 1, 2017. The remaining intangible assets for the Teavana reporting unit of $117.2 million, consisting primarily of the indefinite-lived tradename and finite-lived tea recipes, were also tested, and no impairment losses were recorded.

The ongoing impact of the macro economic challenges we have experienced in our EMEA company-owned markets and the continued strength of the Swiss franc, when compared to the relatively inexpensive euro in surrounding countries, have posed strong headwinds to our Switzerland retail reporting unit. Our latest mitigation efforts incorporated into our Level 3 fair value calculation for our Switzerland retail business are not expected to fully recover the reporting unit’s carrying value given the sustained nature of these and other external factors on consumer behavior and tourism. As a result, we recorded a goodwill impairment charge of $17.9 million in the third quarter of fiscal 2017, and, as of October 1, 2017, we had approximately $37 million of goodwill remaining on our condensed consolidated balance sheet associated with this reporting unit.
Finite-Lived Intangible Assets
 
Oct 1, 2017
 
Oct 2, 2016
(in millions)
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
Acquired and reacquired rights
$
328.8

 
$
(154.2
)
 
$
174.6

 
$
361.3

 
$
(114.5
)
 
$
246.8

Acquired trade secrets and processes
27.6

 
(13.7
)
 
13.9

 
27.6

 
(11.0
)
 
16.6

Trade names, trademarks and patents
31.5

 
(17.6
)
 
13.9

 
29.4

 
(15.2
)
 
14.2

Licensing agreements
14.4

 
(3.8
)
 
10.6

 
16.0

 
(2.8
)
 
13.2

Other finite-lived intangible assets
6.7

 
(5.5
)
 
1.2

 
7.2

 
(4.6
)
 
2.6

Total finite-lived intangible assets
$
409.0

 
$
(194.8
)
 
$
214.2

 
$
441.5

 
$
(148.1
)
 
$
293.4


Amortization expense for finite-lived intangible assets was $57.5 million, $57.3 million, and $50.0 million during fiscal 2017, 2016 and 2015, respectively.
Estimated future amortization expense as of October 1, 2017 (in millions):
Fiscal Year Ending
 
2018
$
55.7

2019
54.5

2020
54.3

2021
31.4

2022
8.0

Thereafter
10.3

Total estimated future amortization expense
$
214.2

Additional disclosure regarding changes in our intangible assets due to acquisitions is included at Note 2, Acquisitions and Divestitures.
Debt
Debt
Debt
Revolving Credit Facility and Commercial Paper Program
Our $1.5 billion 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 on November 6, 2020. Starbucks has the option, subject to negotiation and agreement with the related banks, to increase the maximum commitment amount by an additional $750 million. Borrowings under the credit facility will bear interest at a variable rate based on LIBOR, and, for U.S. 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 agreement. The current applicable margin is 0.565% for Eurocurrency Rate Loans and 0.00% (nil) 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 of October 1, 2017, we were in compliance with all applicable covenants. No amounts were outstanding under our credit facility as of October 1, 2017.
Under our commercial paper program, 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 required to be backstopped by available commitments under our credit facility discussed above. The proceeds from borrowings under our commercial paper program may be used for working capital needs, capital expenditures and other corporate purposes, including, but not limited to, business expansion, payment of cash dividends on our common stock and share repurchases. As of October 1, 2017, availability under our commercial paper program was approximately $0 billion (which represents the full committed credit facility amount, as no amounts were outstanding under our commercial paper program).
In the first quarter of fiscal 2018 we entered into a new credit facility and commercial paper program. See Note 18, Subsequent Events for further detail.
Long-term Debt

In March 2017, we issued Japanese yen-denominated long-term debt in an underwritten registered public offering. The 7-year 0.372% Senior Notes (the “2024 notes”) due March 2024 were issued with a face value of ¥85 billion, of which ¥81 billion has been designated to hedge the foreign currency exposure of our net investment in Japan. Interest on the 2024 notes is payable semi-annually on March 15 and September 15 of each year, commencing on September 15, 2017.
In December 2016, we repaid the $400 million of 0.875% Senior Notes (the “2016 notes”) at maturity.
In May 2016, we issued long-term debt in an underwritten registered public offering, which consisted of $500 million of 10-year 2.450% Senior Notes (the “2026 notes”) due June 2026. Interest on the 2026 notes is payable semi-annually on June 15 and December 15 of each year, commencing on December 15, 2016.
In February 2016, we issued long-term debt in an underwritten registered public offering, which consisted of $500 million of 5-year 2.100% Senior Notes (the “2021 notes”) due February 2021. In May 2016, we reopened this offering with the same terms and issued an additional $250 million of Senior Notes (collectively, the “2021 notes”) for an aggregate amount outstanding of $750 million. Interest on the 2021 notes is payable semi-annually on February 4 and August 4 of each year, commencing on August 4, 2016.
In July 2015, we redeemed $550 million of 6.250% Senior Notes (the “2017 notes”) originally scheduled to mature in August 2017. The redemption resulted in a charge of $61.1 million, which is presented separately as loss on extinguishment of debt within other income and expenses on our consolidated statements of earnings. This loss primarily relates to the optional redemption payment as outlined in the 2017 notes indenture, as well as non-cash expenses related to the previously capitalized original issuance costs and accelerated amortization of the unamortized discount. In connection with the redemption, we also reclassified $2.0 million from accumulated other comprehensive income to interest expense on our consolidated statements of earnings related to remaining unrecognized losses from interest rate contracts entered into in conjunction with the 2017 notes and designated as cash flow hedges.
In June 2015, we issued long-term debt in an underwritten registered public offering, which consisted of $500 million of 7-year 2.700% Senior Notes (the “2022 notes”) due June 2022, and $350 million of 30-year 4.300% Senior Notes (the “2045 notes”) due June 2045. Interest on the 2022 and 2045 notes is payable semi-annually on June 15 and December 15 of each year, commencing on December 15, 2015.
Components of long-term debt including the associated interest rates and related fair values by calendar maturity (in millions, except interest rates):
 
Oct 1, 2017
 
Oct 2, 2016
 
Stated Interest Rate
Effective Interest Rate (1)
Issuance
Face Value
Estimated Fair Value
 
Face Value
Estimated Fair Value
 
2016 notes
$
—

$
—

 
$
400.0

$
400

 
0.875
%
0.941
%
2018 notes
350.0

352

 
350.0

357

 
2.000
%
2.012
%
2021 notes
500.0

501

 
500.0

511

 
2.100
%
2.293
%
2021 notes
250.0

250

 
250.0

255

 
2.100
%
1.600
%
2022 notes
500.0

508

 
500.0

526

 
2.700
%
2.819
%
2023 notes
750.0

806

 
750.0

839

 
3.850
%
2.859
%
2024 notes(2)
755.3

760

 
—

—

 
0.372
%
0.462
%
2026 notes
500.0

481

 
500.0

509

 
2.450
%
2.511
%
2045 notes
350.0

381

 
350.0

417

 
4.300
%
4.348
%
   Total
3,955.3

4,039

 
3,600.0

3,814

 
 
 
Aggregate debt issuance costs and unamortized premium/(discount), net
(17.5
)
 
 
(14.8
)
 
 
 
 
Hedge accounting fair value adjustment(3)
(5.2
)
 
 
—

 
 
 
 
   Total
$
3,932.6

 
 
$
3,585.2

 
 
 
 
(1)
Includes the effects of the amortization of any premium or discount and any gain or loss upon settlement of related treasury locks or forward-starting interest rate swaps utilized to hedge the interest rate risk prior to the debt issuance.
(2) Japanese yen-denominated long-term debt.
(3) Amount represents the change in fair value due to changes in benchmark interest rates related to our 2023 notes. Refer to Note 3, Derivative Financial Instruments, for additional information on our interest rate swap designated as a fair value hedge.
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 October 2, 2017, we were in compliance with each of these covenants.
The following table summarizes our long-term debt maturities as of October 1, 2017 by fiscal year (in millions):
Fiscal Year
Total
2018
$
—

2019
350.0

2020
—

2021
750.0

2022
500.0

Thereafter
2,355.3

Total
$
3,955.3

Leases
Leases
Leases
Rent expense under operating lease agreements (in millions):
Fiscal Year Ended
Oct 1, 2017
 
Oct 2, 2016
 
Sep 27, 2015
Minimum rent
$
1,185.7

 
$
1,092.5

 
$
1,026.3

Contingent rent
143.5

 
130.7

 
111.5

Total
$
1,329.2

 
$
1,223.2

 
$
1,137.8


Minimum future rental payments under non-cancelable operating leases and lease financing arrangements as of October 1, 2017 (in millions):
Fiscal Year Ending
Operating Leases
 
Lease Financing Arrangements
2018
$
1,213.1

 
$
4.1

2019
1,141.6

 
4.1

2020
1,068.6

 
4.1

2021
986.9

 
4.0

2022
888.1

 
3.9

Thereafter
3,315.2

 
38.9

Total minimum lease payments
$
8,613.5

 
$
59.1


We have subleases related to certain of our operating leases. During fiscal 2017, 2016 and 2015, we recognized sublease income of $15.5 million, $14.6 million, and $11.9 million, respectively. Additionally, as of October 1, 2017 and October 2, 2016, the gross carrying values of assets related to build-to-suit lease arrangements accounted for as financing leases were $94.3 million and $92.7 million, respectively, with associated accumulated depreciation of $9.0 million and $6.2 million, respectively. Lease exit costs associated with our restructuring efforts will be recognized concurrently with actual store closures. Total lease exit costs are expected to be approximately $153.7 million of which $15.7 million were recorded within restructuring and impairments on the consolidated statement of earnings in fiscal 2017.
Equity
Equity
Equity
In addition to 2.4 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 October 1, 2017.
We repurchased 37.5 million shares of common stock at a total cost of $2.1 billion, and 34.9 million shares at a total cost of $2.0 billion for the years ended October 1, 2017 and October 2, 2016, respectively. As of October 1, 2017, 80.3 million shares remained available for repurchase under current authorizations.
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 other 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 years ended October 1, 2017, October 2, 2016, and September 27, 2015, net of tax,a re as follows:
(in millions)
 Available-for-Sale Securities
 
 Cash Flow Hedges
 
 Net Investment Hedges
 
Translation Adjustment and Other
 
Total
October 1, 2017
 
 
 
 
 
 
 
 
 
Net gains/(losses) in AOCI, beginning of period
$
1.1

 
$
10.9

 
$
1.3

 
$
(121.7
)
 
$
(108.4
)
Net gains/(losses) recognized in OCI before reclassifications
(6.6
)
 
40.6

 
12.7

 
(40.7
)
 
6.0

Net (gains)/losses reclassified from AOCI to earnings
3.0

 
(55.6
)
 
—

 
(0.6
)
 
(53.2
)
Other comprehensive income/(loss) attributable to Starbucks
(3.6
)
 
(15.0
)
 
12.7

 
(41.3
)
 
(47.2
)
Net gains/(losses) in AOCI, end of period
$
(2.5
)
 
$
(4.1
)
 
$
14.0

 
$
(163.0
)
 
$
(155.6
)
(in millions)
 Available-for-Sale Securities
 
 Cash Flow Hedges
 
 Net Investment Hedges
 
Translation Adjustment and Other
 
Total
October 2, 2016
 
 
 
 
 
 
 
 
 
Net gains/(losses) in AOCI, beginning of period
$
(0.1
)
 
$
25.6

 
$
1.3

 
$
(226.2
)
 
$
(199.4
)
Net gains/(losses) recognized in OCI before reclassifications
2.2

 
(82.1
)
 
—

 
104.5

 
24.6

Net (gains)/losses reclassified from AOCI to earnings
(1.0
)
 
67.4

 
—

 
—

 
66.4

Other comprehensive income/(loss) attributable to Starbucks
1.2

 
(14.7
)
 
—

 
104.5


91.0

Net gains/(losses) in AOCI, end of period
$
1.1

 
$
10.9

 
$
1.3

 
$
(121.7
)
 
$
(108.4
)

(in millions)
 Available-for-Sale Securities
 
 Cash Flow Hedges
 
 Net Investment Hedges
 
Translation Adjustment and Other
 
Total
September 27, 2015
 
 
 
 
 
 
 
 
 
Net gains/(losses) in AOCI, beginning of period
$
(0.4
)
 
$
46.3

 
$
3.2

 
$
(23.8
)
 
$
25.3

Net gains/(losses) recognized in OCI before reclassifications
0.9

 
30.8

 
2.7

 
(185.6
)
 
(151.2
)
Net (gains)/losses reclassified from AOCI to earnings
(0.6
)
 
(51.5
)
 
(4.6
)
 
14.3

 
(42.4
)
Other comprehensive income/(loss) attributable to Starbucks
0.3

 
(20.7
)
 
(1.9
)
 
(171.3
)
 
(193.6
)
Purchase of noncontrolling interest
—

 
—

 
—

 
(31.1
)
 
(31.1
)
Net gains/(losses) in AOCI, end of period
$
(0.1
)
 
$
25.6

 
$
1.3

 
$
(226.2
)
 
$
(199.4
)
Impact of reclassifications from AOCI on the consolidated statements of earnings (in millions):
AOCI
Components
 
Amounts Reclassified from AOCI
 
Affected Line Item in
the Statements of Earnings
 
Fiscal Year Ended
 
 
Oct 1, 2017
 
Oct 2, 2016
 
Sep 27, 2015
 
Gains/(losses) on available-for-sale securities
 
$
(4.1
)
 
$
1.6

 
$
1.0

 
Interest income and other, net
Gains/(losses) on cash flow hedges
 
 
 
 
 
 
 
 
Interest rate hedges
 
4.8

 
5.0

 
3.2

 
Interest expense
Cross-currency swaps
 
57.2

 
(101.1
)
 
46.2

 
Interest income and other, net
Foreign currency hedges
 
3.0

 
4.9

 
14.0

 
Revenue
Foreign currency/coffee hedges
 
5.7

 
11.4

 
8.6

 
Cost of sales including occupancy costs
Gains/(losses) on net investment hedges(1)
 
—

 
—

 
7.2

 
Gain resulting from acquisition of joint venture
Translation adjustment(2)
 
 
 
 
 
 
 
 
Starbucks Japan
 
—

 
—

 
(7.2
)
 
Gain resulting from acquisition of joint venture
Other
 
0.6

 
—

 
(7.1
)
 
Interest income and other, net
 
 
67.2

 
(78.2
)
 
65.9

 
Total before tax
 
 
(14.0
)
 
11.8

 
(23.5
)
 
Tax (expense)/benefit
 
 
$
53.2

 
$
(66.4
)
 
$
42.4

 
Net of tax

(1)  
Release of pretax cumulative net gains in AOCI related to our net investment derivative instruments used to hedge our preexisting 39.5% equity method investment in Starbucks Japan.
(2)  
Release of cumulative translation adjustments to earnings upon sale or liquidation of foreign business.
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 October 1, 2017, there were 73.5 million shares of common stock available for issuance pursuant to future equity-based compensation awards and 13.3 million shares available for issuance under our ESPP.
Stock-based compensation expense recognized in the consolidated financial statements (in millions):
Fiscal Year Ended
Oct 1, 2017
 
Oct 2, 2016
 
Sep 27, 2015
Options
$
44.3

 
$
42.7

 
$
37.8

RSUs
131.7

 
175.4

 
172.0

Total stock-based compensation expense recognized in the consolidated statements of earnings
$
176.0

 
$
218.1

 
$
209.8

Total related tax benefit
$
57.6

 
$
73.0

 
$
72.3

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

 
$
1.5

 
$
1.9


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. 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 2017, 2016 and 2015:
 
Employee Stock Options
Granted During the Period
Fiscal Year Ended
2017
 
2016
 
2015
Expected term (in years)
3.9

 
3.9

 
4.2

Expected stock price volatility
21.6
%
 
23.9
%
 
22.3
%
Risk-free interest rate
1.5
%
 
1.2
%
 
1.1
%
Expected dividend yield
1.8
%
 
1.3
%
 
1.6
%
Weighted average grant price
$
56.12

 
$
60.20

 
$
39.89

Estimated fair value per option granted
$
8.56

 
$
10.54

 
$
6.58


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 U.S. 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 October 1, 2017 (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, October 2, 2016
31.3

 
$
30.59

 
5.8
 
$
771

Granted
7.1

 
56.12

 
 
 
 
Exercised
(5.3
)
 
23.16

 
 
 
 
Expired/forfeited
(1.7
)
 
51.13

 
 
 
 
Outstanding, October 1, 2017
31.4

 
36.51

 
5.8
 
589

Exercisable, October 1, 2017
19.7

 
26.42

 
4.2
 
552

Vested and expected to vest, October 1, 2017
30.0

 
35.60

 
5.6
 
587


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 October 1, 2017, total unrecognized stock-based compensation expense, net of estimated forfeitures, related to nonvested options was approximately $38 million, before income taxes, and is expected to be recognized over a weighted average period of approximately 2.7 years. The total intrinsic value of options exercised was $181 million, $254 million, and $358 million during fiscal years 2017, 2016 and 2015, respectively. The total fair value of options vested was $40 million, $37 million, and $36 million during fiscal years 2017, 2016 and 2015, 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 time-vested 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. The majority of performance-based RSUs vest in two equal annual installments beginning two years from the grant date.
RSU transactions for the year ended October 1, 2017 (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, October 2, 2016
8.3

 
$
46.15

 
0.9
 
$
448

Granted
5.1

 
54.30

 
 
 
 
Vested
(4.3
)
 
42.09

 
 
 
 
Forfeited/canceled
(1.5
)
 
51.05

 
 
 
 
Nonvested, October 1, 2017
7.6

 
52.06

 
0.9
 
410


For fiscal 2016 and 2015, the weighted average fair value per RSU granted was $58.81 and $38.56, respectively. As of October 1, 2017, total unrecognized stock-based compensation expense related to nonvested RSUs, net of estimated forfeitures, was approximately $75 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 $182 million, $169 million and $137 million during fiscal years 2017, 2016 and 2015, 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 0.5 million in fiscal 2017.
Deferred Compensation Plan
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 U.S. and non-U.S. plans were $101.4 million, $86.2 million and $70.9 million in fiscal years 2017, 2016 and 2015, respectively.
Income Taxes
Income Taxes
Income Taxes
Components of earnings before income taxes (in millions):
Fiscal Year Ended
Oct 1, 2017
 
Oct 2, 2016
 
Sep 27, 2015
United States
$
3,393.0

 
$
3,415.7

 
$
2,837.2

Foreign
924.5

 
782.9

 
1,065.8

Total earnings before income taxes
$
4,317.5

 
$
4,198.6

 
$
3,903.0


Provision/(benefit) for income taxes (in millions):
Fiscal Year Ended
Oct 1, 2017
 
Oct 2, 2016
 
Sep 27, 2015
Current taxes:
 
 
 
 
 
U.S. federal
$
931.0

 
$
704.1

 
$
801.0

U.S. state and local
170.8

 
166.5

 
150.1

Foreign
216.6

 
218.5

 
172.2

Total current taxes
1,318.4

 
1,089.1

 
1,123.3

Deferred taxes:
 
 
 
 
 
U.S. federal
121.2

 
351.3

 
56.5

U.S. state and local
14.2

 
25.8

 
4.0

Foreign
(21.2
)
 
(86.5
)
 
(40.1
)
Total deferred taxes
114.2

 
290.6

 
20.4

Total income tax expense
$
1,432.6

 
$
1,379.7

 
$
1,143.7


Reconciliation of the statutory U.S. federal income tax rate with our effective income tax rate:
Fiscal Year Ended
Oct 1, 2017
 
Oct 2, 2016
 
Sep 27, 2015
Statutory rate
35.0
 %
 
35.0
 %
 
35.0
 %
State income taxes, net of federal tax benefit
2.8

 
3.0

 
2.8

Benefits and taxes related to foreign operations
(2.8
)
 
(2.2
)
 
(2.1
)
Domestic production activity deduction
(1.8
)
 
(1.9
)
 
(2.2
)
Gain resulting from acquisition of joint venture
—

 
—

 
(3.7
)
Other, net
—

 
(1.0
)
 
(0.5
)
Effective tax rate
33.2
 %
 
32.9
 %
 
29.3
 %

U.S. income and foreign withholding taxes have not been provided on approximately $3.7 billion of cumulative undistributed earnings of foreign subsidiaries and equity investees, including cumulative unrealized currency translation adjustments. We intend to reinvest these earnings for the foreseeable future. If these amounts were distributed to the U.S., in the form of dividends or otherwise, we would be subject to additional U.S. 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):
 
Oct 1, 2017
 
Oct 2, 2016
Deferred tax assets:
 
 
 
Property, plant and equipment
$
71.3

 
$
56.8

Accrued occupancy costs
118.0

 
104.5

Accrued compensation and related costs
95.0

 
88.6

Stored value card liability
130.7

 
124.2

Stock-based compensation
125.9

 
138.3

Net operating losses
80.8

 
79.0

Litigation charge
792.0

 
862.3

Other
180.8

 
197.4

Total
$
1,594.5

 
$
1,651.1

Valuation allowance
(80.1
)
 
(70.3
)
Total deferred tax asset, net of valuation allowance
$
1,514.4

 
$
1,580.8

Deferred tax liabilities:
 
 
 
Property, plant and equipment
(477.2
)
 
(445.7
)
Intangible assets and goodwill
(159.0
)
 
(175.9
)
Other
(89.1
)
 
(88.5
)
Total
(725.3
)
 
(710.1
)
Net deferred tax asset
$
789.1

 
$
870.7

Reported as:
 
 
 
Deferred income tax assets
795.4

 
885.4

Deferred income tax liabilities (included in Other long-term liabilities)
(6.3
)
 
(14.7
)
Net deferred tax asset
$
789.1

 
$
870.7


The valuation allowance as of October 1, 2017 and October 2, 2016 is primarily related to net operating losses and other deferred tax assets of consolidated foreign subsidiaries.
As of October 1, 2017, we had state net operating loss carryforwards of $31.2 million which will begin to expire in fiscal 2024, state tax credit carryforwards of $18.0 million, of which $15.9 million will begin to expire in fiscal 2024 and the remainder will begin to expire in fiscal 2018, and foreign net operating loss carryforwards of $262.2 million, of which $207.3 million have an indefinite carryforward period and the remainder expire at various dates starting from fiscal 2018.
Uncertain Tax Positions
As of October 1, 2017, we had $196.9 million of gross unrecognized tax benefits of which $139.5 million, if recognized, would affect our effective tax rate. We recognized an expense of $5.2 million, a benefit of $3.6 million and an expense of $0.7 million of interest and penalties in income tax expense, prior to the benefit of the federal tax deduction, for fiscal 2017, 2016 and 2015, respectively. As of October 1, 2017 and October 2, 2016, we had accrued interest and penalties of $11.2 million and $7.7 million, respectively, within our consolidated balance sheets.
The following table summarizes the activity related to our unrecognized tax benefits (in millions):
 
Oct 1, 2017
 
Oct 2, 2016
 
Sep 27, 2015
Beginning balance
$
146.5

 
$
150.4

 
$
112.7

Increase related to prior year tax positions
10.4

 
—

 
7.9

Decrease related to prior year tax positions
—

 
(23.6
)
 
(0.9
)
Increase related to current year tax positions
41.3

 
33.7

 
32.0

Decrease related to current year tax positions
—

 
—

 
(0.6
)
Decreases related to settlements with taxing authorities
—

 
(3.1
)
 
(0.7
)
Decrease related to lapsing of statute of limitations
(1.3
)
 
(10.9
)
 
—

Ending balance
$
196.9

 
$
146.5

 
$
150.4


We are currently under examination, or may be subject to examination, by various U.S. federal, state, local and foreign tax jurisdictions for fiscal years 2006 through 2016. We are no longer subject to U.S. federal or state examination for years prior to fiscal year 2011, with the exception of one state. We are no longer subject to examination in any material international markets prior to 2006.
It is reasonably possible that a portion of the Company's gross unrecognized tax benefits may be recognized by the end of fiscal 2018 as a result of a lapse of the statute of limitations or resolution of examinations with tax authorities. We estimate this range to be approximately $42 million to $75 million.
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
Oct 1, 2017
 
Oct 2, 2016
 
Sep 27, 2015
Net earnings attributable to Starbucks
$
2,884.7

 
$
2,817.7

 
$
2,757.4

Weighted average common shares outstanding (for basic calculation)
1,449.5

 
1,471.6

 
1,495.9

Dilutive effect of outstanding common stock options and RSUs
12.0

 
15.1

 
17.5

Weighted average common and common equivalent shares outstanding (for diluted calculation)
1,461.5

 
1,486.7

 
1,513.4

EPS — basic
$
1.99

 
$
1.91

 
$
1.84

EPS — diluted
$
1.97

 
$
1.90

 
$
1.82


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 11.4 million and 5.4 million out-of-the-money stock options as of October 1, 2017 and October 2, 2016, respectively. There were no out-of-the-money stock options as of September 27, 2015.
Commitments And Contingencies (Notes)
Commitments And Contingencies
Commitments and Contingencies
Contractual Commitments
In the fourth quarter of fiscal 2017, we signed an agreement to acquire the remaining 50% ownership of our East China joint venture from Uni-President Enterprises Corporation (“UPEC”) and President Chain Store Corporation (“PCSC”) for approximately $1.3 billion to unify our business operations across mainland China. The acquisition will convert these licensed stores to company-operated stores and is expected to close by early calendar year 2018, subject to regulatory approval and customary closing conditions. Concurrently, with the purchase of our East China joint venture, UPEC and PCSC will assume 100% ownership of Starbucks operations in Taiwan by acquiring our 50% interest in President Starbucks Coffee Taiwan Limited for approximately $175 million. The sale is also expected to close by early calendar year 2018.
Legal Proceedings
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
Our chief executive officer and executive chairman comprise the Company's Chief Operating Decision Maker function (“CODM”). Segment information is prepared on the same basis that our CODM manages the segments, evaluates financial results, and makes key operating decisions.
We have four reportable operating segments: 1) Americas, inclusive of the U.S., Canada, and Latin America; 2) China/Asia Pacific (“CAP”); 3) Europe, Middle East, and Africa (“EMEA”) and 4) Channel Development.
Americas, CAP, and EMEA 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 CAP and EMEA 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, CAP and EMEA segments also include certain foodservice accounts, primarily in Canada, Japan and the U.K.
Channel Development operations sell a selection of packaged coffees and single-serve products, 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, Starbucks Refreshers® beverages, Teavana™ tea beverages and chilled multi-serve beverages. The U.S. 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
Oct 1, 2017
 
Oct 2, 2016
 
Sep 27, 2015
Beverage
$
12,915.0

 
58
%
 
$
12,383.4

 
58
%
 
$
11,115.4

 
58
%
Food
3,832.1

 
17
%
 
3,495.0

 
16
%
 
3,085.3

 
16
%
Packaged and single-serve coffees and teas
2,883.6

 
13
%
 
2,866.0

 
14
%
 
2,619.9

 
14
%
Other(1)
2,756.1

 
12
%
 
2,571.5

 
12
%
 
2,342.1

 
12
%
Total
$
22,386.8

 
100
%
 
$
21,315.9

 
100
%
 
$
19,162.7

 
100
%
(1) “Other” primarily consists of royalty and licensing revenues, beverage-related ingredients, serveware, and ready-to-drink beverages, among other items.
Information by geographic area (in millions):
Fiscal Year Ended
Oct 1, 2017
 
Oct 2, 2016
 
Sep 27, 2015
Net revenues:
 
 
 
 
 
United States
$
16,527.1

 
$
15,774.8

 
$
14,123.7

Other countries
5,859.7

 
5,541.1

 
5,039.0

Total
$
22,386.8

 
$
21,315.9

 
$
19,162.7

 
 
 
 
 
 
Long-lived assets(1):
 
 
 
 
 
United States
$
5,848.3

 
$
6,012.8

 
$
5,795.2

Other countries
3,234.0

 
3,541.8

 
2,639.9

Total
$
9,082.3

 
$
9,554.6

 
$
8,435.1


(1) Long-lived assets for fiscal 2016 and fiscal 2015 have been adjusted for the adoption of new accounting guidance related to the reclassification of debt issuance costs as discussed in Note 1, Summary of Significant Accounting Policies.
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 U.S. consist primarily of revenues from Japan, Canada, China and the U.K., which together account for approximately 77% of net revenues from other countries for fiscal 2017.
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 other income and expenses 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 attributed to reportable operating segments 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 October 1, 2017, October 2, 2016 and September 27, 2015.
(in millions)
Americas
 
China /
Asia Pacific
 
EMEA
 
Channel
Development
 
All Other Segments
 
Segment
Total
Fiscal 2017
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
$
15,652.7

 
$
3,240.2

 
$
1,013.7

 
$
2,008.6

 
$
471.6

 
$
22,386.8

Depreciation and amortization expenses
615.0

 
202.2

 
31.3

 
2.2

 
10.1

 
860.8

Income from equity investees
—

 
197.0

 
—

 
194.4

 
—

 
391.4

Operating income/(loss)
3,663.2

 
765.0

 
116.1

 
893.4

 
(174.3
)
 
5,263.4

Total assets
3,327.2

 
2,770.9

 
273.8

 
114.0

 
771.9

 
7,257.8

 
 
 
 
 
 
 
 
 
 
 
 
Fiscal 2016
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
$
14,795.4

 
$
2,938.8

 
$
1,124.9

 
$
1,932.5

 
$
524.3

 
$
21,315.9

Depreciation and amortization expenses
590.1

 
180.6

 
40.8

 
2.8

 
13.3

 
827.6

Income from equity investees
—

 
150.1

 
1.5

 
166.6

 
—

 
318.2

Operating income/(loss)
3,742.0

 
631.6

 
151.6

 
807.3

 
(38.4
)
 
5,294.1

Total assets
3,424.6

 
2,740.2

 
552.1

 
67.1

 
861.1

 
7,645.1

 
 
 
 
 
 
 
 
 
 
 
 
Fiscal 2015
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
$
13,293.4

 
$
2,395.9

 
$
1,216.7

 
$
1,730.9

 
$
525.8

 
$
19,162.7

Depreciation and amortization expenses
522.3

 
150.7

 
52.0

 
2.7

 
16.3

 
744.0

Income from equity investees
—

 
119.6

 
3.1

 
127.2

 
—

 
249.9

Operating income/(loss)
3,223.3

 
500.5

 
168.2

 
653.9

 
(24.8
)
 
4,521.1

Total assets
2,726.7

 
2,230.5

 
749.1

 
87.3

 
1,785.3

 
7,578.9


The following table reconciles total segment operating income in the table above to consolidated earnings before income taxes (in millions):
Fiscal Year Ended
Oct 1, 2017
 
Oct 2, 2016
 
Sep 27, 2015
Total segment operating income
$
5,263.4

 
$
5,294.1

 
$
4,521.1

Unallocated corporate operating expenses
(1,128.7
)
 
(1,122.2
)
 
(920.1
)
Consolidated operating income
4,134.7

 
4,171.9

 
3,601.0

Gain resulting from acquisition of joint venture
—

 
—

 
390.6

Loss on extinguishment of debt
—

 
—

 
(61.1
)
Interest income and other, net
275.3

 
108.0

 
43.0

Interest expense
(92.5
)
 
(81.3
)
 
(70.5
)
Earnings before income taxes
$
4,317.5

 
$
4,198.6

 
$
3,903.0

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 2017:
 
 
 
 
 
 
 
 
 
Net revenues
$
5,732.9

 
$
5,294.0

 
$
5,661.5

 
$
5,698.3

 
$
22,386.8

Operating income
1,132.6

 
935.4

 
1,044.2

 
1,022.5

 
4,134.7

Net earnings attributable to Starbucks
751.8

 
652.8

 
691.6

 
788.5

 
2,884.7

EPS — diluted
0.51

 
0.45

 
0.47

 
0.54

 
1.97

Fiscal 2016(1):
 
 
 
 
 
 
 
 
 
Net revenues
$
5,373.5

 
$
4,993.2

 
$
5,238.0

 
$
5,711.2

 
$
21,315.9

Operating income
1,058.0

 
864.2

 
1,022.3

 
1,227.5

 
4,171.9

Net earnings attributable to Starbucks
687.6

 
575.1

 
754.1

 
801.0

 
2,817.7

EPS — diluted
0.46

 
0.39

 
0.51

 
0.54

 
1.90


(1) The fiscal year ended on October 2, 2016, included 53 weeks, with the 53rd week falling in our fourth fiscal quarter.
Summary of Significant Accounting Policies (Policies) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
Accounting Policies [Abstract]
 
 
 
Principles of Consolidation
Text Block 
 
 
Fiscal Year End
Text Block 
 
 
Estimates and Assumptions
Text Block 
 
 
Cash and Cash Equivalents
Text Block 
 
 
Investments
Text Block 
 
 
Fair Value
Text Block 
 
 
Derivative Instruments
Text Block 
 
 
Receivables, net of Allowance for Doubtful Accounts
Text Block 
 
 
Inventories
Text Block 
 
 
Property, Plant and Equipment
Text Block 
 
 
Goodwill
Text Block 
 
 
Other Intangible Assets
Text Block 
 
 
Insurance Reserves
Text Block 
 
 
Revenue Recognition
Text Block 
 
 
Stored Value Cards and Loyalty Program
$ 104.6 
$ 60.5 
$ 39.3 
Marketing & Advertising
Text Block 
 
 
Store Preopening Expenses
Text Block 
 
 
Leases
Text Block 
 
 
Asset Retirement Obligations
Text Block 
 
 
Stock-based Compensation
Text Block 
 
 
Foreign Currency Translation
Text Block 
 
 
Income Taxes
Text Block 
 
 
Earnings per Share
Text Block 
 
 
Common Stock Share Repurchases
Text Block 
 
 
Recent Accounting Pronouncements
Text Block 
 
 
Principles of Consolidation 
Principles of Consolidation
Our 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 year 2017 and 2015 included 52 weeks. Fiscal year 2016 included 53 weeks, with the 53rd week falling in the fourth fiscal quarter
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 business 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 accrued liabilities on our 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 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 and approximates a portion of our liability under our Management Deferred Compensation Plan (“MDCP”). Gains or losses from the portfolio and the change in our MDCP liability are recorded in our consolidated statements of earnings.
Equity and Cost Method Investments
Equity investments are accounted for using the equity method of accounting if the investment gives us the ability to exercise significant influence, but not control, over an investee. Equity method investments are included within long-term investments on our consolidated balance sheets. Our share of the earnings or losses as reported by equity method investees are classified as income from equity investees on our consolidated statements of earnings.
Equity investments for which we do not have the ability to exercise significant influence are accounted for using the cost method of accounting and are recorded in long-term investments on our consolidated balance sheets. Under the cost method, investments are carried at cost and are adjusted only for other-than-temporary declines in fair value, certain distributions and additional 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 U.S. 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 our 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. In order to manage our exposure to these risks, 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. We do not enter into derivative instruments for speculative purposes.
We record all derivatives on our consolidated balance sheets at fair value. Excluding interest rate swaps and foreign currency debt, we generally do not enter into derivative instruments with maturities longer than three years or offset derivative assets and liabilities in our consolidated balance sheets. However, we are allowed to net settle transactions with respective counterparties for certain derivative contracts, inclusive of interest rate swaps and foreign currency forwards, with a single, net amount payable by one party to the other. We also enter into collateral security arrangements that provide for collateral to be received or posted when the net fair value of certain financial instruments fluctuates from contractually established thresholds. As of October 1, 2017 and October 2, 2016, we received and posted $5.8 million and $19.5 million, respectively, of cash collateral related to the derivative instruments under collateral security arrangements. As of October 1, 2017 and October 2, 2016, the potential effects of netting arrangements with our derivative contracts, excluding the effects of collateral, would be a reduction to both derivative assets and liabilities of $7.4 million and $9.4 million, respectively, resulting in net derivative assets of $30.4 million and net derivative liabilities of $31.1 million as of October 1, 2017, and net derivative assets of $24.7 million and net derivative liabilities of $80.2 million as of October 2, 2016.
By using these derivative instruments, we expose ourselves to potential credit risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. We minimize this credit risk by entering into transactions with carefully selected, credit-worthy counterparties and distribute contracts among several financial institutions to reduce the concentration of credit risk.
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 our 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 interest income and other, net on our 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. Once established, cash flow hedges generally remain designated as such until the hedged item impacts net earnings, or the anticipated transaction is no longer likely to occur. For de-designated cash flow hedges or for transactions that are no longer likely to occur, the related accumulated derivative gains or losses are recognized in interest income and other, net or interest expense on our consolidated statements of earnings based on the nature of the underlying transaction.
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 interest income and other, net on our consolidated statements of earnings.
Fair Value Hedges
For derivative instruments that are designated and qualify as a fair value hedge, the changes in fair value of the derivative instruments and the offsetting changes in fair values of the underlying hedged item are recorded in interest income and other, net or interest expense on our 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 interest income and other, net on our 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.
Refer to Note 3, Derivative Financial Instruments, and Note 5, Inventories, for further discussion of our derivative instruments and green coffee purchase commitments.
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 consumer packaged goods (“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 October 1, 2017 and October 2, 2016, our allowance for doubtful accounts was $9.8 million and $9.4 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 October 1, 2017 and October 2, 2016, inventory reserves were $38.4 million and $39.6 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 on our 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 $46.9 million, $25.1 million, and $12.5 million in fiscal 2017, 2016, and 2015, respectively. Additionally, we recognized net impairment charges of $56.1 million, $24.1 million, and $25.8 million in fiscal 2017, 2016, and 2015, respectively, of which $39.9 million in fiscal 2017 were restructuring related and recorded in restructuring and impairment expenses. Unless it is restructuring related, 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 on our 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. For certain reporting units, where deemed appropriate, we may also utilize a market approach for estimating fair value. 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. Due to the strategic decision to close Teavana branded retail stores and our subsequent review of this reporting unit's fair value, we recorded goodwill impairment charges of $69.3 million during the third quarter of fiscal 2017.
Additionally, we recorded a partial goodwill impairment of $17.9 million related to our Switzerland retail reporting unit during the third quarter of fiscal 2017, primarily due to ongoing macro economic factors. There were no material goodwill impairment charges recorded during fiscal 2016 and 2015.
Other Intangible Assets 
Other Intangible Assets
Other intangible assets include finite-lived intangible assets, which mainly consist of acquired and reacquired rights, trade secrets, licensing agreements, contract-based patents and copyrights. These assets 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.
Indefinite-lived intangibles, which consist primarily of trade names and trademarks, 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 intangible asset group 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.
There were no significant other intangible asset impairment charges recorded during fiscal 2017, 2016, and 2015.
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. Sales of coffee, tea, food 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 on our 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-, Seattle’s Best Coffee- and Tazo-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-, Seattle’s Best Coffee- and Tazo-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
Stored value cards, primarily Starbucks Cards, can be activated at our company-operated and most licensed store locations, online at StarbucksStore.com or via mobile devices held by our customers, and at certain other third party locations, such as grocery stores, although they cannot be reloaded at these third party locations. When an amount is loaded onto a stored value card at any of these locations, we recognize a corresponding liability for the full amount loaded onto the card, which is recorded within stored value card liability on our consolidated balance sheets.
Stored value cards can be redeemed at company-operated and most licensed stores, as well as online. When a stored value card is redeemed at a company-operated store or online, we recognize revenue by reducing the stored value card liability. When a stored value card is redeemed at a licensed store location, we reduce the corresponding stored value card liability and cash, which is reimbursed to the licensee.
There are no expiration dates on our stored value cards, and in most markets, we do not charge 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, based on historical experience, is deemed 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, unredeemed card balances may then be recognized as breakage income, which is included in interest income and other, net on our consolidated statements of earnings. In fiscal 2017, 2016, and 2015, we recognized breakage income of $104.6 million, $60.5 million, and $39.3 million, respectively.
Loyalty Program
In the U.S. and Canada, effective April 2016, we modified our transaction-based loyalty program, My Starbucks Rewards® to a spend-based program, Starbucks RewardsTM. For fiscal 2016, the existing transaction-based programs remain unchanged for other markets. During fiscal 2017, we launched Starbucks RewardsTM in Japan. Customers in the U.S., Canada, and certain other countries who register their Starbucks Card are automatically enrolled in the program. They earn loyalty points (“Stars”) with each purchase at participating Starbucks® and TeavanaTM stores, as well as on certain packaged coffee products purchased in select Starbucks® stores, online, and through CPG channels. After accumulating a certain number of Stars, the customer earns a reward that can be redeemed for free product that, regardless of where the related Stars were earned within that country, will be honored at company-operated stores and certain participating licensed store locations in that same country.
Regardless of whether it is a spend or transaction-based program, we defer revenue associated with the estimated selling price of Stars earned by our program members towards free product as each Star is earned, and a corresponding liability is established within stored value card liability on our consolidated balance sheets. The estimated selling price of each Star earned is based on the estimated value of the product for which the reward is expected to be redeemed, net of Stars we do not expect to be redeemed, based on historical redemption patterns. Stars generally expire if inactive for a period of six months.
When a customer redeems an earned reward, we recognize revenue for the redeemed product and reduce the related loyalty program liability.
Marketing & Advertising 
Advertising
We expense most advertising costs as they are incurred, except for certain production costs that are expensed the first time the advertising takes place. Advertising expenses totaled $282.6 million, $248.6 million and $227.9 million in fiscal 2017, 2016, and 2015, 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.
Leases 
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 our consolidated balance sheets and amortize the deferred rent over the terms of the leases as reductions to rent expense in cost of sales including occupancy costs on our consolidated statements of earnings.
For premiums paid upfront to enter a lease agreement, we record a prepaid rent asset in prepaid expenses and other non-current assets on our consolidated balance sheets and amortize the premium over the terms of the leases as additional rent expense in cost of sales including occupancy costs on our 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 cost of sales including occupancy costs on our consolidated statements of earnings, with the adjustments to cash rent accrued as deferred rent in our consolidated balance sheets.
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 in accrued occupancy costs within accrued liabilities on our consolidated balance sheets and the corresponding rent expense 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, we 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.
Lease Financing Arrangements
We are sometimes involved in the construction of leased buildings, primarily stores. When we qualify as the deemed owner of these buildings due to significant involvement during the construction period under build-to-suit lease accounting requirements and do not qualify for sales recognition under sales-leaseback accounting guidance, we record the cost of the related buildings in property, plant and equipment. The offsetting lease financing obligations are recorded in other long-term liabilities, with the current portion recorded in in accrued occupancy costs within accrued liabilities on our consolidated balance sheets. These assets and obligations are amortized in depreciation and amortization and interest expense, respectively, on our consolidated statements of earnings based on the terms of the related lease agreements.
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 the liability 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 on our consolidated statements of earnings. As of October 1, 2017 and October 2, 2016, our net ARO assets included in property, plant and equipment were $12.4 million and $9.3 million, respectively, and our net ARO liabilities included in other long-term liabilities were $70.0 million and $67.9 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. 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. Compensation expense is recognized over the requisite service period for each separately vesting portion of the award, and only for those awards expected to vest, with forfeitures estimated at the date of grant based on our historical experience and future expectations.
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 our 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 jurisdictions 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 on our consolidated statements of earnings. Accrued interest and penalties are included within the related tax liability on our 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 August 2017, the Financial Accounting Standards Board (“FASB”) amended its guidance on the financial reporting of hedging relationships. The new guidance eliminates the requirement to separately measure and report hedge ineffectiveness, expands permissible cash flow hedges on contractually specified components, and simplifies hedge documentation and effectiveness assessment. The guidance will be effective at the beginning of our first quarter of fiscal year 2020 and will require a modified retrospective approach on existing cash flow and net investment hedges. The presentation and disclosure requirements will be applied prospectively. We are currently evaluating the impact this guidance will have on our consolidated financial statements and the timing of adoption.
In January 2017, the FASB issued guidance that simplifies the measurement of goodwill impairment. Under this new guidance, an impairment charge, if triggered, is calculated as the difference between a reporting unit’s carrying value and fair value, but it is limited to the carrying value of goodwill. During the second quarter of fiscal 2017, we elected to early-adopt this guidance on a prospective basis.
In October 2016, the FASB issued guidance on the accounting for income tax effects of intercompany sales or transfers of assets other than inventory. The guidance requires entities to recognize the income tax impact of an intra-entity sale or transfer of an asset other than inventory when the sale or transfer occurs, rather than when the asset has been sold to an outside party. The guidance will require a modified retrospective application with a cumulative catch-up adjustment to opening retained earnings at the beginning of our first quarter of fiscal 2019 but permits adoption in an earlier period. We are currently evaluating the impact this guidance will have on our consolidated financial statements and the timing of adoption.
In June 2016, the FASB issued guidance on the measurement and recognition of credit losses on most financial assets. For trade receivables, loans, and held-to-maturity debt securities, the current probable loss recognition methodology is being replaced by an expected credit loss model. For available-for-sale debt securities, the recognition model on credit losses is generally unchanged, except the losses will be presented as an adjustable allowance. The guidance will be applied retrospectively with the cumulative effect recognized as of the date of adoption. The guidance will become effective at the beginning of our first quarter of fiscal 2021 but can be adopted as early as the beginning of our first quarter of fiscal 2020. We are currently evaluating the impact this guidance will have on our consolidated financial statements and the timing of adoption.
In March 2016, the FASB issued guidance related to stock-based compensation, which changes the accounting and classification of excess tax benefits and minimum tax withholdings on share-based awards. With this adoption, excess tax benefits and tax deficiencies related to stock-based compensation will be prospectively reflected as a reduction of, or increase in, income tax expense in our consolidated statement of earnings instead of additional paid-in capital on our consolidated balance sheet. Additionally, within our consolidated statement of cash flows, this guidance will require excess tax benefits to be presented as an operating activity, rather than a financing activity, in the same manner as other cash flows related to income taxes. As a result, we expect the adoption will have a significant impact on income tax expense and earnings per share, as reported in our consolidated statement of earnings and consolidated statement of cash flows. We will adopt this guidance in the first quarter of fiscal 2018. If the new guidance had been adopted for fiscal years 2017, 2016 and 2015, approximately $78 million, $125 million and $132 million, respectively, of excess net tax benefits recorded to additional paid-in capital would have been recorded as a reduction to income tax expense. Excess tax benefits or deficiencies are based on our stock price at the time stock options are exercised or when restricted stock units vest, therefore prior year amounts are not indicative of the future impact of this guidance. 
In March 2016, the FASB issued guidance for financial liabilities resulting from selling prepaid stored value products that are redeemable at third-party merchants. Under the new guidance, expected breakage amounts associated with these products must be recognized proportionately in earnings as redemption occurs. Our current accounting policy of applying the remote method to all of our stored value cards, including cards redeemable at the third-party licensed locations, will no longer be allowed. We will adopt and implement the provisions of this guidance and the new revenue recognition standard issued by the FASB, as discussed below, in the first quarter of fiscal 2019.
In February 2016, the FASB issued guidance on the recognition and measurement of leases. Under the new guidance, lessees are required to recognize a lease liability, which represents the discounted obligation to make future minimum lease payments, and a corresponding right-of-use asset on the balance sheet for most leases. The guidance retains the current accounting for lessors and does not make significant changes to the recognition, measurement, and presentation of expenses and cash flows by a lessee. Enhanced disclosures will also be required to give financial statement users the ability to assess the amount, timing and uncertainty of cash flows arising from leases. The guidance will require modified retrospective application at the beginning of our first quarter of fiscal 2020, with optional practical expedients, but permits adoption in an earlier period. We are currently evaluating the impact this guidance will have on our consolidated financial statements. We expect this adoption will result in a material increase in the assets and liabilities on our consolidated balance sheets but will likely have an insignificant impact on our consolidated statements of earnings. In preparation for adoption of the guidance, we are in the process of implementing controls and key system changes to enable the preparation of financial information.
In April 2015, the FASB issued guidance on the financial statement presentation of debt issuance costs. This guidance requires these costs to be presented in the balance sheet as a reduction of the related debt liability rather than as an asset. We retrospectively adopted this guidance in the first quarter of fiscal 2017, which resulted in the reclassification of $17.0 million of debt issuance costs previously presented in prepaid expenses and other current assets and other long-term assets to long-term debt in our consolidated balance sheet as of October 2, 2016. Components of our long-term debt and aggregate debt issuance costs and unamortized premium are disclosed in Note 9, Debt.
In May 2014, the 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. The new guidance may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. We are currently evaluating the overall impact this guidance will have on our consolidated financial statements, as well as the expected method of adoption. Based on our continued assessment, which may identify other accounting impacts, we have determined the adoption will change the timing of recognition and classification of our stored value card breakage income, which is currently recognized using the remote method and recorded in interest income and other, net. The new guidance will require application of the proportional method and classification within total net revenues on our consolidated statements of earnings. Additionally, the new guidance requires enhanced disclosures, including revenue recognition policies to identify performance obligations to customers and significant judgments in measurement and recognition. We will adopt this guidance in the first quarter of fiscal 2019.
Acquisitions and Divestitures (Tables)
Supplemental pro forma revenue and net earnings 
espectively.
The following table provides the supplemental pro forma revenue and net earnings of the combined entity had the acquisition date of Starbucks Japan been the first day of our first quarter of fiscal 2014 rather than during our first quarter of fiscal 2015 (in
Allocation of total consideration to fair values of assets acquired and liabilities assumed 
Acquiring Starbucks Japan further leverages 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.
The following table summarizes the final allocation of the total consideration to the fair values of the assets acquired and liabilities assumed as of October 31, 2014, which are reported within our China/Asia Pacific segment (in
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)
 
Oct 1,
2017
 
Oct 2,
2016
 
Sep 27,
2015
 
 
Cash Flow Hedges:
 
 
 
 
 
 
 
 
 
Interest rates
$
17.6

 
$
20.5

 
$
30.1

 
$
3.0

 
0
Cross-currency swaps
(6.0
)
 
(7.7
)
 
(27.8
)
 
—

 
86
Foreign currency - other
(9.1
)
 
(0.4
)
 
29.0

 
(5.8
)
 
36
Coffee
(6.6
)
 
(1.6
)
 
(5.7
)
 
(6.6
)
 
4
Net Investment Hedges:
 
 
 
 
 
 
 
 
 
Foreign currency
16.2

 
1.3

 
1.3

 
0.1

 
0
Foreign currency debt
(2.2
)
 
—

 
—

 
—

 
79
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)
 
Oct 1,
2017
 
Oct 2,
2016
 
Sep 27,
2015
 
 
Cash Flow Hedges:
 
 
 
 
 
 
 
 
 
Interest rates
$
17.6

 
$
20.5

 
$
30.1

 
$
3.0

 
0
Cross-currency swaps
(6.0
)
 
(7.7
)
 
(27.8
)
 
—

 
86
Foreign currency - other
(9.1
)
 
(0.4
)
 
29.0

 
(5.8
)
 
36
Coffee
(6.6
)
 
(1.6
)
 
(5.7
)
 
(6.6
)
 
4
Net Investment Hedges:
 
 
 
 
 
 
 
 
 
Foreign currency
16.2

 
1.3

 
1.3

 
0.1

 
0
Foreign currency debt
(2.2
)
 
—

 
—

 
—

 
79
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
 
Oct 1,
2017
 
Oct 2,
2016
 
Sep 27,
2015
 
Oct 1,
2017
 
Oct 2,
2016
 
Sep 27,
2015
Cash Flow Hedges:
 
 
 
 
 
 
 
 
 
 
 
Interest rates
$
—

 
$
(10.3
)
 
$
(6.8
)
 
$
4.8

 
$
5.0

 
$
3.2

Cross-currency swaps
59.5

 
(75.7
)
 
11.4

 
57.2

 
(101.1
)
 
46.2

Foreign currency - other
1.8

 
(25.4
)
 
52.0

 
11.4

 
19.1

 
26.1

Coffee
(8.1
)
 
1.7

 
(9.0
)
 
(2.7
)
 
(2.8
)
 
(3.5
)
Net Investment Hedges:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency
23.6

 
—

 
4.3

 
—

 
—

 
7.2

Foreign currency debt
(3.5
)
 
—

 
—

 
—

 
—

 
—

Pretax Gains and Losses on Derivative Contracts Not Designated as Hedging Instruments Recognized in Earnings 
Pretax gains and losses on non-designated derivatives and designated fair value hedging instruments recognized in earnings (in millions):
 
Gains/(Losses) Recognized in Earnings
 
Oct 1, 2017
 
Oct 2, 2016
 
Sep 27, 2015
Non-Designated Derivatives:
 
 
 
 
 
Foreign currency - other
$
4.6

 
$
(5.7
)
 
$
27.1

Dairy
—

 
(5.5
)
 
(3.8
)
Diesel fuel and other commodities
1.3

 
(0.2
)
 
(9.0
)
Designated Fair Value Hedging Instruments:
 
 
 
 
 
Interest rate swap
(5.2
)
 
—

 
—

Notional Amounts of Outstanding Derivative Contracts 
Notional amounts of outstanding derivative contracts (in millions):
 
Oct 1, 2017
 
Oct 2, 2016
Interest rate swap
$
750

 
$
—

Cross-currency swaps
514

 
660

Foreign currency - other
901

 
688

Coffee
—

 
7

Dairy
14

 
76

Diesel fuel and other commodities
41

 
46

Fair Value of Outstanding Derivative Contracts 
Fair value of outstanding derivative contracts (in millions):
 
Derivative Assets
 
Derivative Liabilities
 
Oct 1, 2017
 
Oct 2, 2016
 
Oct 1, 2017
 
Oct 2, 2016
Designated Derivative Instruments:
 
 
 
 
 
 
 
Cross-currency swaps
$
12.4

 
$
—

 
$
9.8

 
$
57.0

Foreign currency - other
7.7

 
20.8

 
20.8

 
24.0

Coffee
—

 
1.8

 
—

 
—

Net investment hedges
0.3

 
—

 
—

 
—

Interest rate swap
—

 
—

 
3.8

 
—

Non-designated Derivative Instruments:
 
 
 
 
 
 
 
Foreign currency
15.8

 
6.2

 
1.4

 
6.5

Dairy
—

 
1.5

 
2.4

 
1.6

Diesel fuel and other commodities
1.6

 
3.8

 
0.3

 
0.5

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
Oct 1, 2017
 
Quoted Prices
in Active
Markets for 
Identical Assets
(Level 1)
 
Significant 
Other Observable 
Inputs
(Level 2)
 
Significant
Unobservable  Inputs
(Level 3)
Assets:
 
 
 
 
 
 
 
Cash and cash equivalents
$
2,462.3

 
$
2,462.3

 
$
—

 
$
—

Short-term investments:
 
 
 
 
 
 
 
Available-for-sale securities
 
 
 
 
 
 
 
Agency obligations
7.5

 
—

 
7.5

 
—

Commercial paper
2.0

 
—

 
2.0

 
—

Corporate debt securities
49.4

 
—

 
49.4

 
—

Foreign government obligations
7.1

 
—

 
7.1

 
—

U.S. government treasury securities
81.4

 
81.4

 
—

 
—

Mortgage and other asset-backed securities
2.0

 
—

 
2.0

 
—

Certificates of deposit
2.3

 
—

 
2.3

 
—

Total available-for-sale securities
151.7

 
81.4

 
70.3

 
—

Trading securities
76.9

 
76.9

 
—

 
—

Total short-term investments
228.6

 
158.3

 
70.3

 
—

Prepaid expenses and other current assets:
 
 
 
 
 
 
 
Derivative assets
13.4

 
0.1

 
13.3

 
—

Long-term investments:
 
 
 
 
 
 
 
Available-for-sale securities
 
 
 
 
 
 
 
Agency obligations
21.8

 
—

 
21.8

 
—

Corporate debt securities
207.4

 
—

 
207.4

 
—

Auction rate securities
5.9

 
—

 
—

 
5.9

Foreign government obligations
17.1

 
—

 
17.1

 
—

U.S. government treasury securities
127.4

 
127.4

 
—

 
—

State and local government obligations
7.0

 
—

 
7.0

 
—

Mortgage and other asset-backed securities
155.7

 
—

 
155.7

 
—

Total long-term investments
542.3

 
127.4

 
409.0

 
5.9

Other long-term assets:
 
 
 
 
 
 
 
Derivative assets
24.4

 
—

 
24.4

 
—

Total assets
$
3,271.0

 
$
2,748.1

 
$
517.0

 
$
5.9

Liabilities:
 
 
 
 
 
 
 
Accrued liabilities:
 
 
 
 
 
 
 
Derivative liabilities
$
16.4

 
$
2.5

 
$
13.9

 
$
—

Other long-term liabilities:
 
 
 
 
 
 
 
Derivative liabilities
22.1

 
—

 
22.1

 
—

Total liabilities
$
38.5

 
$
2.5

 
$
36.0

 
$
—

 
 
 
 
Fair Value Measurements at Reporting Date Using
 
Balance at
Oct 2, 2016
 
Quoted Prices
in Active
Markets for 
Identical Assets
(Level 1)
 
Significant 
Other Observable 
Inputs
(Level 2)
 
Significant
Unobservable  Inputs
(Level 3)
Assets:
 
 
 
 
 
 
 
Cash and cash equivalents
$
2,128.8

 
$
2,128.8

 
$
—

 
$
—

Short-term investments:
 
 
 
 
 
 
 
Available-for-sale securities
 
 
 
 
 
 
 
Agency obligations
1.3

 
—

 
1.3

 
—

Commercial paper
2.6

 
—

 
2.6

 
—

Corporate debt securities
34.2

 
—

 
34.2

 
—

Foreign government obligations
5.5

 
—

 
5.5

 
—

U.S. government treasury securities
15.8

 
15.8

 
—

 
—

State and local government obligations
0.5

 
—

 
0.5

 
—

Certificates of deposit
5.8

 
—

 
5.8

 
—

Total available-for-sale securities
65.7

 
15.8

 
49.9

 
—

Trading securities
68.7

 
68.7

 
—

 
—

Total short-term investments
134.4

 
84.5

 
49.9

 
—

Prepaid expenses and other current assets:
 
 
 
 
 
 
 
Derivative assets
27.7

 
3.1

 
24.6

 
—

Long-term investments:
 
 
 
 
 
 
 
Available-for-sale securities
 
 
 
 
 
 
 
Agency obligations
44.4

 
—

 
44.4

 
—

Corporate debt securities
459.3

 
—

 
459.3

 
—

Auction rate securities
5.7

 
—

 
—

 
5.7

Foreign government obligations
46.7

 
—

 
46.7

 
—

U.S. government treasury securities
358.2

 
358.2

 
—

 
—

State and local government obligations
57.5

 
—

 
57.5

 
—

Mortgage and other asset-backed securities
169.9

 
—

 
169.9

 
—

Total long-term investments
1,141.7

 
358.2

 
777.8

 
5.7

Other long-term assets:
 
 
 
 
 
 
 
Derivative assets
6.4

 
—

 
6.4

 
—

Total assets
$
3,439.0

 
$
2,574.6

 
$
858.7

 
$
5.7

Liabilities:
 
 
 
 
 
 
 
Accrued liabilities:
 
 
 
 
 
 
 
Derivative liabilities
$
18.0

 
$
1.7

 
$
16.3

 
$
—

Other long-term liabilities:
 
 
 
 
 
 
 
Derivative liabilities
71.6

 
—

 
71.6

 
—

Total
$
89.6

 
$
1.7

 
$
87.9

 
$
—

Inventories (Tables)
Inventories
Inventories (in millions)
 
Oct 1, 2017
 
Oct 2, 2016
Coffee:
 
 
 
Unroasted
$
541.0

 
$
561.6

Roasted
301.1

 
300.4

Other merchandise held for sale
301.1

 
308.6

Packaging and other supplies
220.8

 
207.9

Total
$
1,364.0

 
$
1,378.5

Equity and Cost Investments (Tables)
Schedule of Equity and Cost Method Investments
Equity and Cost Investments (in millions)
 
Oct 1,
2017
 
Oct 2,
2016
Equity method investments
$
432.8

 
$
305.7

Cost method investments
48.8

 
48.8

Total
$
481.6

 
$
354.5

Supplemental Balance Sheet Information (Tables)
Property, Plant and Equipment, net 
Property, Plant and Equipment, net
 
Oct 1, 2017
 
Oct 2, 2016
Land
$
46.9

 
$
46.6

Buildings
481.7

 
458.4

Leasehold improvements
6,401.0

 
5,892.9

Store equipment
2,110.7

 
1,931.7

Roasting equipment
619.8

 
605.4

Furniture, fixtures and other
1,514.1

 
1,366.9

Work in progress
409.8

 
271.4

Property, plant and equipment, gross
11,584.0

 
10,573.3

Accumulated depreciation
(6,664.5
)
 
(6,039.5
)
Property, plant and equipment, net
$
4,919.5

 
$
4,533.8

Accrued Liabilities 
Accrued Liabilities
 
Oct 1, 2017
 
Oct 2, 2016
Accrued compensation and related costs
$
524.5

 
$
510.8

Accrued occupancy costs
151.3

 
137.5

Accrued taxes
226.6

 
368.4

Accrued dividends payable
429.5

 
365.1

Accrued capital and other operating expenditures
602.6

 
617.3

Total accrued liabilities
$
1,934.5

 
$
1,999.1

Other Intangible Assets and Goodwill (Tables)
Indefinite-Lived Intangible Assets 
Indefinite-Lived Intangible Assets
(in millions)
Oct 1, 2017
 
Oct 2, 2016
Trade names, trademarks and patents
$
212.1

 
$
207.8

Other indefinite-lived intangible assets
15.1

 
15.1

Total indefinite-lived intangible assets
$
227.2

 
$
222.9


Additional disclosure regarding changes in our intangible assets due to acquisitions is included at Note 2, Acquisitions and Divestitures.
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
 
China/Asia Pacific
 
EMEA
 
Channel
Development
 
All Other Segments
 
Total
Goodwill balance at September 27, 2015
$
211.2

 
$
804.1

 
$
57.4

 
$
23.8

 
$
478.9

 
$
1,575.4

Acquisition/(divestiture)
—

 
—

 
(2.6
)
 
—

 
5.3

 
2.7

Other
0.4

 
140.8

 
0.3

 
—

 
—

 
141.5

Goodwill balance at October 2, 2016
$
211.6

 
$
944.9

 
$
55.1

 
$
23.8

 
$
484.2

 
$
1,719.6

Acquisition/(divestiture)
—

 
(7.6
)
 
—

 
—

 
—

 
(7.6
)
Impairment
—

 
—

 
(17.9
)
 
—

 
(69.3
)
 
(87.2
)
Other
1.5

 
(87.1
)
 
—

 
—

 
—

 
(85.6
)
Goodwill balance at October 1, 2017
$
213.1

 
$
850.2

 
$
37.2

 
$
23.8

 
$
414.9

 
$
1,539.2


“Other” primarily consists of changes in the goodwill balance as a result of foreign currency translation.

During the third quarter of fiscal 2017, management finalized its long-term strategy for the Teavana reporting unit. The plan emphasizes sales of premium Teavana™ tea products at Starbucks branded stores and, to a lesser extent, consumer product channels. The existing portfolio of Teavana-branded retail stores are expected to be closed over the next several quarters. This change in strategic direction triggered an impairment test first of the retail store assets and then an impairment test of the goodwill asset, which also coincided with our annual goodwill testing process. For goodwill, we utilized a combination of income and market approaches to determine the implied fair value of the reporting unit. These approaches used primarily unobservable inputs, including discount, sales growth and royalty rates and valuation multiples of a selection of similar publicly traded companies, which are considered Level 3 fair value measurements. We then compared the implied fair value with the carrying value and recognized a goodwill impairment charge of $69.3 million, thus reducing goodwill of the Teavana reporting unit to $398.3 million as of October 1, 2017. The remaining intangible assets for the Teavana reporting unit of $117.2 million, consisting primarily of the indefinite-lived tradename and finite-lived tea recipes, were also tested, and no impairment losses were recorded.

The ongoing impact of the macro economic challenges we have experienced in our EMEA company-owned markets and the continued strength of the Swiss franc, when compared to the relatively inexpensive euro in surrounding countries, have posed strong headwinds to our Switzerland retail reporting unit. Our latest mitigation efforts incorporated into our Level 3 fair value calculation for our Switzerland retail business are not expected to fully recover the reporting unit’s carrying value given the sustained nature of these and other external factors on consumer behavior and tourism. As a result, we recorded a goodwill impairment charge of $17.9 million in the third quarter of fiscal 2017, and, as of October 1, 2017, we had approximately $37 million of goodwill remaining on our condensed consolidated balance sheet associated with this reporting unit.
Finite-Lived Intangible Assets
Finite-Lived Intangible Assets 
inite-Lived Intangible Assets
 
Oct 1, 2017
 
Oct 2, 2016
(in millions)
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
Acquired and reacquired rights
$
328.8

 
$
(154.2
)
 
$
174.6

 
$
361.3

 
$
(114.5
)
 
$
246.8

Acquired trade secrets and processes
27.6

 
(13.7
)
 
13.9

 
27.6

 
(11.0
)
 
16.6

Trade names, trademarks and patents
31.5

 
(17.6
)
 
13.9

 
29.4

 
(15.2
)
 
14.2

Licensing agreements
14.4

 
(3.8
)
 
10.6

 
16.0

 
(2.8
)
 
13.2

Other finite-lived intangible assets
6.7

 
(5.5
)
 
1.2

 
7.2

 
(4.6
)
 
2.6

Total finite-lived intangible assets
$
409.0

 
$
(194.8
)
 
$
214.2

 
$
441.5

 
$
(148.1
)
 
$
293.4


Amortization expense for finite-lived intangible assets was $57.5 million, $57.3 million, and $50.0 million during fiscal 2017, 2016 and 2015, respectively.
Estimated Future Amortization Expense 
Estimated future amortization expense as of October 1, 2017 (in millions):
Fiscal Year Ending
 
2018
$
55.7

2019
54.5

2020
54.3

2021
31.4

2022
8.0

Thereafter
10.3

Total estimated future amortization expense
$
214.2

Additional disclosure regarding changes in our intangible assets due to acquisitions is included at Note 2, Acquisitions and Divestitures.
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 by calendar maturity (in millions, except interest rates):
 
Oct 1, 2017
 
Oct 2, 2016
 
Stated Interest Rate
Effective Interest Rate (1)
Issuance
Face Value
Estimated Fair Value
 
Face Value
Estimated Fair Value
 
2016 notes
$
—

$
—

 
$
400.0

$
400

 
0.875
%
0.941
%
2018 notes
350.0

352

 
350.0

357

 
2.000
%
2.012
%
2021 notes
500.0

501

 
500.0

511

 
2.100
%
2.293
%
2021 notes
250.0

250

 
250.0

255

 
2.100
%
1.600
%
2022 notes
500.0

508

 
500.0

526

 
2.700
%
2.819
%
2023 notes
750.0

806

 
750.0

839

 
3.850
%
2.859
%
2024 notes(2)
755.3

760

 
—

—

 
0.372
%
0.462
%
2026 notes
500.0

481

 
500.0

509

 
2.450
%
2.511
%
2045 notes
350.0

381

 
350.0

417

 
4.300
%
4.348
%
   Total
3,955.3

4,039

 
3,600.0

3,814

 
 
 
Aggregate debt issuance costs and unamortized premium/(discount), net
(17.5
)
 
 
(14.8
)
 
 
 
 
Hedge accounting fair value adjustment(3)
(5.2
)
 
 
—

 
 
 
 
   Total
$
3,932.6

 
 
$
3,585.2

 
 
 
 
(1)
Includes the effects of the amortization of any premium or discount and any gain or loss upon settlement of related treasury locks or forward-starting interest rate swaps utilized to hedge the interest rate risk prior to the debt issuance.
Schedule of Maturities of Long-term Debt [Table Text Block] 
The following table summarizes our long-term debt maturities as of October 1, 2017 by fiscal year (in millions):
Fiscal Year
Total
2018
$
—

2019
350.0

2020
—

2021
750.0

2022
500.0

Thereafter
2,355.3

Total
$
3,955.3

Leases (Tables)
Rent Expense Under Operating Lease Agreements 
Rent expense under operating lease agreements (in millions):
Fiscal Year Ended
Oct 1, 2017
 
Oct 2, 2016
 
Sep 27, 2015
Minimum rent
$
1,185.7

 
$
1,092.5

 
$
1,026.3

Contingent rent
143.5

 
130.7

 
111.5

Total
$
1,329.2

 
$
1,223.2

 
$
1,137.8

Minimum future rental payments 
Minimum future rental payments under non-cancelable operating leases and lease financing arrangements as of October 1, 2017 (in millions):
Fiscal Year Ending
Operating Leases
 
Lease Financing Arrangements
2018
$
1,213.1

 
$
4.1

2019
1,141.6

 
4.1

2020
1,068.6

 
4.1

2021
986.9

 
4.0

2022
888.1

 
3.9

Thereafter
3,315.2

 
38.9

Total minimum lease payments
$
8,613.5

 
$
59.1

Equity (Tables)
Changes in Components of Accumulated Other Comprehensive Income, Net of Tax 
Changes in accumulated other comprehensive income (“AOCI”) by component, for the years ended October 1, 2017, October 2, 2016, and September 27, 2015, net of tax,a re as follows:
(in millions)
 Available-for-Sale Securities
 
 Cash Flow Hedges
 
 Net Investment Hedges
 
Translation Adjustment and Other
 
Total
October 1, 2017
 
 
 
 
 
 
 
 
 
Net gains/(losses) in AOCI, beginning of period
$
1.1

 
$
10.9

 
$
1.3

 
$
(121.7
)
 
$
(108.4
)
Net gains/(losses) recognized in OCI before reclassifications
(6.6
)
 
40.6

 
12.7

 
(40.7
)
 
6.0

Net (gains)/losses reclassified from AOCI to earnings
3.0

 
(55.6
)
 
—

 
(0.6
)
 
(53.2
)
Other comprehensive income/(loss) attributable to Starbucks
(3.6
)
 
(15.0
)
 
12.7

 
(41.3
)
 
(47.2
)
Net gains/(losses) in AOCI, end of period
$
(2.5
)
 
$
(4.1
)
 
$
14.0

 
$
(163.0
)
 
$
(155.6
)
(in millions)
 Available-for-Sale Securities
 
 Cash Flow Hedges
 
 Net Investment Hedges
 
Translation Adjustment and Other
 
Total
October 2, 2016
 
 
 
 
 
 
 
 
 
Net gains/(losses) in AOCI, beginning of period
$
(0.1
)
 
$
25.6

 
$
1.3

 
$
(226.2
)
 
$
(199.4
)
Net gains/(losses) recognized in OCI before reclassifications
2.2

 
(82.1
)
 
—

 
104.5

 
24.6

Net (gains)/losses reclassified from AOCI to earnings
(1.0
)
 
67.4

 
—

 
—

 
66.4

Other comprehensive income/(loss) attributable to Starbucks
1.2

 
(14.7
)
 
—

 
104.5


91.0

Net gains/(losses) in AOCI, end of period
$
1.1

 
$
10.9

 
$
1.3

 
$
(121.7
)
 
$
(108.4
)
Impact of Reclassification from Accumulated Other Comprehensive Income on Earnings 
Impact of reclassifications from AOCI on the consolidated statements of earnings (in millions):
AOCI
Components
 
Amounts Reclassified from AOCI
 
Affected Line Item in
the Statements of Earnings
 
Fiscal Year Ended
 
 
Oct 1, 2017
 
Oct 2, 2016
 
Sep 27, 2015
 
Gains/(losses) on available-for-sale securities
 
$
(4.1
)
 
$
1.6

 
$
1.0

 
Interest income and other, net
Gains/(losses) on cash flow hedges
 
 
 
 
 
 
 
 
Interest rate hedges
 
4.8

 
5.0

 
3.2

 
Interest expense
Cross-currency swaps
 
57.2

 
(101.1
)
 
46.2

 
Interest income and other, net
Foreign currency hedges
 
3.0

 
4.9

 
14.0

 
Revenue
Foreign currency/coffee hedges
 
5.7

 
11.4

 
8.6

 
Cost of sales including occupancy costs
Gains/(losses) on net investment hedges(1)
 
—

 
—

 
7.2

 
Gain resulting from acquisition of joint venture
Translation adjustment(2)
 
 
 
 
 
 
 
 
Starbucks Japan
 
—

 
—

 
(7.2
)
 
Gain resulting from acquisition of joint venture
Other
 
0.6

 
—

 
(7.1
)
 
Interest income and other, net
 
 
67.2

 
(78.2
)
 
65.9

 
Total before tax
 
 
(14.0
)
 
11.8

 
(23.5
)
 
Tax (expense)/benefit
 
 
$
53.2

 
$
(66.4
)
 
$
42.4

 
Net of tax
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
Oct 1, 2017
 
Oct 2, 2016
 
Sep 27, 2015
Options
$
44.3

 
$
42.7

 
$
37.8

RSUs
131.7

 
175.4

 
172.0

Total stock-based compensation expense recognized in the consolidated statements of earnings
$
176.0

 
$
218.1

 
$
209.8

Total related tax benefit
$
57.6

 
$
73.0

 
$
72.3

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

 
$
1.5

 
$
1.9

Employee Stock Options Granted During the Period, Valuation Assumptions 
The fair value of stock option awards was estimated at the grant date with the following weighted average assumptions for fiscal years 2017, 2016 and 2015:
 
Employee Stock Options
Granted During the Period
Fiscal Year Ended
2017
 
2016
 
2015
Expected term (in years)
3.9

 
3.9

 
4.2

Expected stock price volatility
21.6
%
 
23.9
%
 
22.3
%
Risk-free interest rate
1.5
%
 
1.2
%
 
1.1
%
Expected dividend yield
1.8
%
 
1.3
%
 
1.6
%
Weighted average grant price
$
56.12

 
$
60.20

 
$
39.89

Estimated fair value per option granted
$
8.56

 
$
10.54

 
$
6.58

Stock Option Transactions 
Stock option transactions for the year ended October 1, 2017 (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, October 2, 2016
31.3

 
$
30.59

 
5.8
 
$
771

Granted
7.1

 
56.12

 
 
 
 
Exercised
(5.3
)
 
23.16

 
 
 
 
Expired/forfeited
(1.7
)
 
51.13

 
 
 
 
Outstanding, October 1, 2017
31.4

 
36.51

 
5.8
 
589

Exercisable, October 1, 2017
19.7

 
26.42

 
4.2
 
552

Vested and expected to vest, October 1, 2017
30.0

 
35.60

 
5.6
 
587

RSU Transactions 
RSU transactions for the year ended October 1, 2017 (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, October 2, 2016
8.3

 
$
46.15

 
0.9
 
$
448

Granted
5.1

 
54.30

 
 
 
 
Vested
(4.3
)
 
42.09

 
 
 
 
Forfeited/canceled
(1.5
)
 
51.05

 
 
 
 
Nonvested, October 1, 2017
7.6

 
52.06

 
0.9
 
410

Income Taxes (Tables)
Components of Earnings/(Loss) Before Income Taxes 
Components of earnings before income taxes (in millions):
Fiscal Year Ended
Oct 1, 2017
 
Oct 2, 2016
 
Sep 27, 2015
United States
$
3,393.0

 
$
3,415.7

 
$
2,837.2

Foreign
924.5

 
782.9

 
1,065.8

Total earnings before income taxes
$
4,317.5

 
$
4,198.6

 
$
3,903.0

Provision/(Benefit) for Income Taxes 
Provision/(benefit) for income taxes (in millions):
Fiscal Year Ended
Oct 1, 2017
 
Oct 2, 2016
 
Sep 27, 2015
Current taxes:
 
 
 
 
 
U.S. federal
$
931.0

 
$
704.1

 
$
801.0

U.S. state and local
170.8

 
166.5

 
150.1

Foreign
216.6

 
218.5

 
172.2

Total current taxes
1,318.4

 
1,089.1

 
1,123.3

Deferred taxes:
 
 
 
 
 
U.S. federal
121.2

 
351.3

 
56.5

U.S. state and local
14.2

 
25.8

 
4.0

Foreign
(21.2
)
 
(86.5
)
 
(40.1
)
Total deferred taxes
114.2

 
290.6

 
20.4

Total income tax expense
$
1,432.6

 
$
1,379.7

 
$
1,143.7

Reconciliation of the Statutory U.S. Federal Income Tax Rate With Our Effective Income Tax Rate 
Reconciliation of the statutory U.S. federal income tax rate with our effective income tax rate:
Fiscal Year Ended
Oct 1, 2017
 
Oct 2, 2016
 
Sep 27, 2015
Statutory rate
35.0
 %
 
35.0
 %
 
35.0
 %
State income taxes, net of federal tax benefit
2.8

 
3.0

 
2.8

Benefits and taxes related to foreign operations
(2.8
)
 
(2.2
)
 
(2.1
)
Domestic production activity deduction
(1.8
)
 
(1.9
)
 
(2.2
)
Gain resulting from acquisition of joint venture
—

 
—

 
(3.7
)
Other, net
—

 
(1.0
)
 
(0.5
)
Effective tax rate
33.2
 %
 
32.9
 %
 
29.3
 %
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):
 
Oct 1, 2017
 
Oct 2, 2016
Deferred tax assets:
 
 
 
Property, plant and equipment
$
71.3

 
$
56.8

Accrued occupancy costs
118.0

 
104.5

Accrued compensation and related costs
95.0

 
88.6

Stored value card liability
130.7

 
124.2

Stock-based compensation
125.9

 
138.3

Net operating losses
80.8

 
79.0

Litigation charge
792.0

 
862.3

Other
180.8

 
197.4

Total
$
1,594.5

 
$
1,651.1

Valuation allowance
(80.1
)
 
(70.3
)
Total deferred tax asset, net of valuation allowance
$
1,514.4

 
$
1,580.8

Deferred tax liabilities:
 
 
 
Property, plant and equipment
(477.2
)
 
(445.7
)
Intangible assets and goodwill
(159.0
)
 
(175.9
)
Other
(89.1
)
 
(88.5
)
Total
(725.3
)
 
(710.1
)
Net deferred tax asset
$
789.1

 
$
870.7

Reported as:
 
 
 
Deferred income tax assets
795.4

 
885.4

Deferred income tax liabilities (included in Other long-term liabilities)
(6.3
)
 
(14.7
)
Net deferred tax asset
$
789.1

 
$
870.7

Summary of Activity Related to Unrecognized Tax Benefits 
The following table summarizes the activity related to our unrecognized tax benefits (in millions):
 
Oct 1, 2017
 
Oct 2, 2016
 
Sep 27, 2015
Beginning balance
$
146.5

 
$
150.4

 
$
112.7

Increase related to prior year tax positions
10.4

 
—

 
7.9

Decrease related to prior year tax positions
—

 
(23.6
)
 
(0.9
)
Increase related to current year tax positions
41.3

 
33.7

 
32.0

Decrease related to current year tax positions
—

 
—

 
(0.6
)
Decreases related to settlements with taxing authorities
—

 
(3.1
)
 
(0.7
)
Decrease related to lapsing of statute of limitations
(1.3
)
 
(10.9
)
 
—

Ending balance
$
196.9

 
$
146.5

 
$
150.4

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
Oct 1, 2017
 
Oct 2, 2016
 
Sep 27, 2015
Net earnings attributable to Starbucks
$
2,884.7

 
$
2,817.7

 
$
2,757.4

Weighted average common shares outstanding (for basic calculation)
1,449.5

 
1,471.6

 
1,495.9

Dilutive effect of outstanding common stock options and RSUs
12.0

 
15.1

 
17.5

Weighted average common and common equivalent shares outstanding (for diluted calculation)
1,461.5

 
1,486.7

 
1,513.4

EPS — basic
$
1.99

 
$
1.91

 
$
1.84

EPS — diluted
$
1.97

 
$
1.90

 
$
1.82

Segment Reporting (Tables)
Consolidated Revenue Mix by Product Type 
Consolidated revenue mix by product type (in millions):
Fiscal Year Ended
Oct 1, 2017
 
Oct 2, 2016
 
Sep 27, 2015
Beverage
$
12,915.0

 
58
%
 
$
12,383.4

 
58
%
 
$
11,115.4

 
58
%
Food
3,832.1

 
17
%
 
3,495.0

 
16
%
 
3,085.3

 
16
%
Packaged and single-serve coffees and teas
2,883.6

 
13
%
 
2,866.0

 
14
%
 
2,619.9

 
14
%
Other(1)
2,756.1

 
12
%
 
2,571.5

 
12
%
 
2,342.1

 
12
%
Total
$
22,386.8

 
100
%
 
$
21,315.9

 
100
%
 
$
19,162.7

 
100
%
(1) “Other” primarily consists of royalty and licensing revenues, beverage-related ingredients, serveware, and ready-to-drink beverages, among other items.
Information by geographic area 
Information by geographic area (in millions):
Fiscal Year Ended
Oct 1, 2017
 
Oct 2, 2016
 
Sep 27, 2015
Net revenues:
 
 
 
 
 
United States
$
16,527.1

 
$
15,774.8

 
$
14,123.7

Other countries
5,859.7

 
5,541.1

 
5,039.0

Total
$
22,386.8

 
$
21,315.9

 
$
19,162.7

 
 
 
 
 
 
Long-lived assets(1):
 
 
 
 
 
United States
$
5,848.3

 
$
6,012.8

 
$
5,795.2

Other countries
3,234.0

 
3,541.8

 
2,639.9

Total
$
9,082.3

 
$
9,554.6

 
$
8,435.1

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 October 1, 2017, October 2, 2016 and September 27, 2015.
(in millions)
Americas
 
China /
Asia Pacific
 
EMEA
 
Channel
Development
 
All Other Segments
 
Segment
Total
Fiscal 2017
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
$
15,652.7

 
$
3,240.2

 
$
1,013.7

 
$
2,008.6

 
$
471.6

 
$
22,386.8

Depreciation and amortization expenses
615.0

 
202.2

 
31.3

 
2.2

 
10.1

 
860.8

Income from equity investees
—

 
197.0

 
—

 
194.4

 
—

 
391.4

Operating income/(loss)
3,663.2

 
765.0

 
116.1

 
893.4

 
(174.3
)
 
5,263.4

Total assets
3,327.2

 
2,770.9

 
273.8

 
114.0

 
771.9

 
7,257.8

 
 
 
 
 
 
 
 
 
 
 
 
Fiscal 2016
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
$
14,795.4

 
$
2,938.8

 
$
1,124.9

 
$
1,932.5

 
$
524.3

 
$
21,315.9

Depreciation and amortization expenses
590.1

 
180.6

 
40.8

 
2.8

 
13.3

 
827.6

Income from equity investees
—

 
150.1

 
1.5

 
166.6

 
—

 
318.2

Operating income/(loss)
3,742.0

 
631.6

 
151.6

 
807.3

 
(38.4
)
 
5,294.1

Total assets
3,424.6

 
2,740.2

 
552.1

 
67.1

 
861.1

 
7,645.1

 
 
 
 
 
 
 
 
 
 
 
 
Fiscal 2015
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
$
13,293.4

 
$
2,395.9

 
$
1,216.7

 
$
1,730.9

 
$
525.8

 
$
19,162.7

Depreciation and amortization expenses
522.3

 
150.7

 
52.0

 
2.7

 
16.3

 
744.0

Income from equity investees
—

 
119.6

 
3.1

 
127.2

 
—

 
249.9

Operating income/(loss)
3,223.3

 
500.5

 
168.2

 
653.9

 
(24.8
)
 
4,521.1

Total assets
2,726.7

 
2,230.5

 
749.1

 
87.3

 
1,785.3

 
7,578.9

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 before income taxes (in millions):
Fiscal Year Ended
Oct 1, 2017
 
Oct 2, 2016
 
Sep 27, 2015
Total segment operating income
$
5,263.4

 
$
5,294.1

 
$
4,521.1

Unallocated corporate operating expenses
(1,128.7
)
 
(1,122.2
)
 
(920.1
)
Consolidated operating income
4,134.7

 
4,171.9

 
3,601.0

Gain resulting from acquisition of joint venture
—

 
—

 
390.6

Loss on extinguishment of debt
—

 
—

 
(61.1
)
Interest income and other, net
275.3

 
108.0

 
43.0

Interest expense
(92.5
)
 
(81.3
)
 
(70.5
)
Earnings before income taxes
$
4,317.5

 
$
4,198.6

 
$
3,903.0

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 2017:
 
 
 
 
 
 
 
 
 
Net revenues
$
5,732.9

 
$
5,294.0

 
$
5,661.5

 
$
5,698.3

 
$
22,386.8

Operating income
1,132.6

 
935.4

 
1,044.2

 
1,022.5

 
4,134.7

Net earnings attributable to Starbucks
751.8

 
652.8

 
691.6

 
788.5

 
2,884.7

EPS — diluted
0.51

 
0.45

 
0.47

 
0.54

 
1.97

Fiscal 2016(1):
 
 
 
 
 
 
 
 
 
Net revenues
$
5,373.5

 
$
4,993.2

 
$
5,238.0

 
$
5,711.2

 
$
21,315.9

Operating income
1,058.0

 
864.2

 
1,022.3

 
1,227.5

 
4,171.9

Net earnings attributable to Starbucks
687.6

 
575.1

 
754.1

 
801.0

 
2,817.7

EPS — diluted
0.46

 
0.39

 
0.51

 
0.54

 
1.90

Acquisitions and Divestitures (Narrative) (Details) (USD $)
12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 0 Months Ended 12 Months Ended 35 Months Ended 0 Months Ended
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
Oct. 1, 2017
Acquired and reacquired rights [Member]
Oct. 2, 2016
Acquired and reacquired rights [Member]
Oct. 1, 2017
Singapore Retail Operations [Member]
Oct. 1, 2017
East China JV [Member]
Oct. 1, 2017
Taiwan JV [Member]
Jun. 26, 2016
Germany Retail Operations [Member]
Oct. 2, 2016
Germany Retail Operations [Member]
Sep. 27, 2015
Puerto Rico Retail Operations [Member]
Oct. 31, 2014
Starbucks Coffee Japan Ltd [Member]
Oct. 1, 2017
Starbucks Coffee Japan Ltd [Member]
Oct. 2, 2016
Starbucks Coffee Japan Ltd [Member]
Sep. 27, 2015
Starbucks Coffee Japan Ltd [Member]
Oct. 1, 2017
Starbucks Coffee Japan Ltd [Member]
Oct. 31, 2014
Starbucks Coffee Japan Ltd [Member]
Acquired and reacquired rights [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total proceeds from sale of retail store assets and operations
 
 
 
 
 
$ 119,900,000 
 
 
$ 47,300,000 
 
$ 8,900,000 
 
 
 
 
 
 
Gain/(loss) resulting from divestiture
 
 
 
 
 
83.9 
 
 
 
insignificant 
insignificant 
 
 
 
 
 
 
Preexisting ownership percentage
 
 
 
 
 
 
50.00% 
50.00% 
 
 
 
 
 
 
39.50% 
 
 
Proceeds from Divestiture of Interest in Joint Venture
 
 
 
 
 
 
 
175,000,000 
 
 
 
 
 
 
 
 
 
Payments to Acquire Interest in Joint Venture
 
 
 
 
 
 
1,300,000,000 
 
 
 
 
 
 
 
 
 
 
Remaining Ownership Interest in Equity Method Investee to be Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
60.50% 
 
 
 
Cash paid to acquire additional ownership interest
 
 
 
 
 
 
 
 
 
 
 
508,700,000 
 
876,000,000 
 
 
 
Acquisition date
 
 
 
 
 
 
 
 
 
 
 
Oct. 31, 2014 
 
 
 
 
 
Reason for acquisition
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquiring Starbucks Japan further leverages 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 
 
 
Finite-lived intangible assets acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
305,000,000 
Finite-lived intangible assets, amortization expense
57,500,000 
57,300,000 
50,000,000 
 
 
 
 
 
 
 
 
 
48,400,000 
 
 
 
 
Finite-lived intangible assets, accumulated amortization
194,800,000 
148,100,000 
 
154,200,000 
114,500,000 
 
 
 
 
 
 
 
139,100,000 
 
 
139,100,000 
 
Acquired finite-lived intangible assets, amortization expense, next twelve months
 
 
 
 
 
 
 
 
 
 
 
 
47,000,000 
 
 
47,000,000 
 
Acquired finite-lived intangible assets, amortization expense, year two
 
 
 
 
 
 
 
 
 
 
 
 
47,000,000 
 
 
47,000,000 
 
Acquired finite-lived intangible assets, amortization expense, year three
 
 
 
 
 
 
 
 
 
 
 
 
47,000,000 
 
 
47,000,000 
 
Acquired finite-lived intangible assets, amortization expense, year five
 
 
 
 
 
 
 
 
 
 
 
 
24,000,000 
 
 
24,000,000 
 
Finite-Lived Intangible Amortization, after Year Four
 
 
 
 
 
 
 
 
 
 
 
 
5,000,000 
 
 
5,000,000 
 
Goodwill
 
 
 
 
 
 
 
 
 
 
 
815,600,000 
 
 
 
783,400,000 
 
Goodwill description
 
 
 
 
 
 
 
 
 
 
 
the intangible assets that do not qualify for separate recognition and primarily includes the acquired customer base, the acquired workforce including store partners in the region that have strong relationships with these customers, the existing geographic retail and online presence, and the expected geographic presence in new channels 
 
 
 
 
 
Goodwill, effect of foreign currency translation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(32,200,000)
 
Gain resulting from acquisition of joint venture
0 
0 
390,600,000 
 
 
 
 
 
 
 
 
 
 
 
390,600,000 
 
 
Fair value of preexisting equity interest
 
 
 
 
 
 
 
 
 
 
 
577,000,000 
 
 
 
 
 
Revenue included in consolidated statements of earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,100,000,000 
 
 
Net earnings included in consolidated statements of earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
108,500,000 
 
 
Pro forma revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
19,254,500,000 
 
 
Pro forma net earnings attributable to Starbucks
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,380,900,000 
 
 
Finite-Lived Intangible Assets, Amortization Expense, Year Five
8,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Thereafter
$ 10,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisitions and Divestitures (Allocation of Total Consideration to Fair Value of Assets Acquired and Liabilities Assumed) (Details) (Starbucks Coffee Japan Ltd [Member], USD $)
In Millions, unless otherwise specified
0 Months Ended 12 Months Ended 35 Months Ended
Oct. 31, 2014
Oct. 2, 2016
Oct. 1, 2017
Oct. 31, 2014
Starbucks Coffee Japan Ltd [Member]
 
 
 
 
Cash paid to acquire additional ownership interest
$ 508.7 
$ 876.0 
 
 
Fair value of preexisting equity interest
577.0 
 
 
 
Cash and cash equivalents
 
 
 
224.4 
Accounts receivable, net
 
 
 
37.4 
Inventories
 
 
 
26.4 
Prepaid expenses and other current assets
 
 
 
35.7 
Property, plant and equipment
 
 
 
282.9 
Other long-term assets
 
 
 
141.4 
Other intangible assets
 
 
 
323.0 
Goodwill
815.6 
 
783.4 
 
Total assets acquired
 
 
 
1,886.8 
Accounts payable
 
 
 
(54.5)
Accrued liabilities
 
 
 
(115.9)
Stored value card liability
 
 
 
(36.5)
Deferred income taxes
 
 
 
(67.3)
Other long-term liabilities
 
 
 
(115.8)
Total liabilities assumed
 
 
 
390.0 
Noncontrolling interest
 
 
 
(411.1)
Total consideration
$ 1,085.7 
 
 
 
Summary of Significant Accounting Policies (Narrative) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 3 Months Ended
Dec. 28, 2014
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
Apr. 9, 2015
Common Stock [Member]
Apr. 9, 2015
Common Stock [Member]
Oct. 1, 2017
Leasehold improvements [Member]
Oct. 1, 2017
Restructuring Charges [Member]
Oct. 1, 2017
Minimum [Member]
Equipment [Member]
Oct. 1, 2017
Minimum [Member]
Buildings [Member]
Oct. 1, 2017
Maximum [Member]
Equipment [Member]
Oct. 1, 2017
Maximum [Member]
Buildings [Member]
Oct. 1, 2017
Commodity Contract [Member]
Maximum [Member]
Jul. 2, 2017
Teavana [Member]
Jul. 2, 2017
Starbucks Coffee Switzerland [Member]
Accounting Policies [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stored Value Cards and Loyalty Program
 
$ 104.6 
$ 60.5 
$ 39.3 
 
 
 
 
 
 
 
 
 
 
 
Number of reportable operating segments
 
4 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill, Impairment Loss
 
87.2 
0 
0 
 
 
 
 
 
 
 
 
 
69.3 
17.9 
Derivative instruments maturity, in years
 
 
 
 
 
 
 
 
 
 
 
 
3 years 
 
 
Derivative asset, cash collateral
 
5.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative, Collateral, Obligation to Return Cash
 
 
19.5 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative contract, potential effects of netting, reduction in value
 
7.4 
9.4 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative asset
 
30.4 
25.0 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liability
 
31.1 
80.2 
 
 
 
 
 
 
 
 
 
 
 
 
Receivables, net of Allowance for Doubtful Accounts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for doubtful accounts
 
9.8 
9.4 
 
 
 
 
 
 
 
 
 
 
 
 
Inventories
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inventory reserves
 
38.4 
39.6 
 
 
 
 
 
 
 
 
 
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Excess Tax Benefit from Share-based Compensation, Operating Activities
 
77.5 
122.8 
132.4 
 
 
 
 
 
 
 
 
 
 
 
Estimated useful life of property, plant and equipment, in years
 
 
 
 
 
 
10 years 
 
2 years 
30 years 
15 years 
40 years 
 
 
 
Net disposition charges on property, plant and equipment
 
(46.9)
(25.1)
(12.5)
 
 
 
 
 
 
 
 
 
 
 
Net impairment charges on property, plant and equipment
 
56.1 
24.1 
25.8 
 
 
 
39.9 
 
 
 
 
 
 
 
Other Intangible Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other intangible asset impairment charges
0 
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
Marketing & Advertising
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advertising expenses
 
282.6 
248.6 
227.9 
 
 
 
 
 
 
 
 
 
 
 
Asset Retirement Obligations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net ARO assets included in property, plant and equipment
 
12.4 
9.3 
 
 
 
 
 
 
 
 
 
 
 
 
Net ARO liabilities included in other long-term liabilities
 
70.0 
67.9 
 
 
 
 
 
 
 
 
 
 
 
 
Class of Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock split conversion ratio
 
 
 
 
2 
 
 
 
 
 
 
 
 
 
 
Common stock, par value
 
$ 0.001 
$ 0.001 
 
 
$ 0.001 
 
 
 
 
 
 
 
 
 
Impact to shareholders' equity from stock split
 
 
 
 
 
$ 0 
 
 
 
 
 
 
 
 
 
Summary of Significant Accounting Policies Effects of Early Adoption of New Accounting Pronouncement (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
New Accounting Pronouncement, Early Adoption [Line Items]
 
 
 
Excess Tax Benefit from Share-based Compensation, Operating Activities
$ 77.5 
$ 122.8 
$ 132.4 
Long-term deferred income tax assets
795.4 
885.4 
 
Long-term deferred income tax liabilities (included in Other long-term liabilities)
6.3 
14.7 
 
Net deferred tax asset
789.1 
870.7 
 
Long-term Debt [Member]
 
 
 
New Accounting Pronouncement, Early Adoption [Line Items]
 
 
 
Debt Issuance Costs, Net
 
$ 17.0 
 
Summary of Significant Accounting Policies Significant Accounting Policies Additional Disclosures (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
Excess Tax Benefit from Share-based Compensation, Operating Activities
$ 77.5 
$ 122.8 
$ 132.4 
Accounting Standards Update 2016-09 [Member]
 
 
 
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
 
 
 
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification
$ 78 
$ 125 
$ 132 
Derivative Financial Instruments Derivative Financial Instruments (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
1 Months Ended 1 Months Ended
Oct. 1, 2017
Three Point Eight Five Percentage Senior Notes [Member]
Oct. 2, 2016
Three Point Eight Five Percentage Senior Notes [Member]
Oct. 1, 2017
Two Point One Percentage Senior Notes [Member]
Oct. 2, 2016
Two Point One Percentage Senior Notes [Member]
Jun. 26, 2016
Two Point One Percentage Senior Notes [Member]
Oct. 1, 2017
Two Point Four Five Percentage Senior Notes [Member]
Oct. 2, 2016
Two Point Four Five Percentage Senior Notes [Member]
Oct. 1, 2017
Interest Rate Contract [Member]
Oct. 2, 2016
Interest Rate Contract [Member]
Oct. 2, 2016
Interest Rate Contract [Member]
Two Point One Percentage Senior Notes [Member]
Oct. 1, 2017
Cross-Currency Swap [Member]
Oct. 2, 2016
Cross-Currency Swap [Member]
Jun. 30, 2017
Senior Notes [Member]
Three Point Eight Five Percentage Senior Notes [Member]
Feb. 29, 2016
Senior Notes [Member]
Two Point One Percentage Senior Notes [Member]
Mar. 27, 2016
Senior Notes [Member]
Two Point One Percentage Senior Notes [Member]
May 31, 2016
Senior Notes [Member]
Two Point Four Five Percentage Senior Notes [Member]
Jun. 26, 2016
Senior Notes [Member]
Two Point Four Five Percentage Senior Notes [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative, Notional Amount
 
 
 
 
 
 
 
$ 750 
$ 0 
$ 375 
$ 514 
$ 660 
 
 
 
 
 
Face value of Senior Notes
750.0 
750.0 
500.0 
500.0 
 
500.0 
500.0 
 
 
 
 
 
 
 
500.0 
 
500.0 
Face amount from reopening of previous Senior Notes
 
 
$ 250.0 
$ 250.0 
$ 250.0 
 
 
 
 
 
 
 
 
 
 
 
 
Stated Interest Rate
3.85% 
 
2.10% 
 
 
2.45% 
 
 
 
 
 
 
 
 
2.10% 
 
2.45% 
Debt Instrument, Maturity
 
 
 
 
 
 
 
 
 
 
 
 
Oct. 01, 2023 
Feb. 04, 2021 
 
Jun. 15, 2026 
 
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
3 Months Ended
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
Cash Flow Hedging [Member] |
Interest Rate Contract [Member]
 
 
 
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
 
Net Gains/(Losses) Included in AOCI
$ 17.6 
$ 20.5 
$ 30.1 
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months
3.0 
 
 
Contract Remaining Maturity (Months)
0 months 
 
 
Cash Flow Hedging [Member] |
Cross-Currency Swap [Member]
 
 
 
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
 
Net Gains/(Losses) Included in AOCI
(6.0)
(7.7)
(27.8)
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months
0 
 
 
Contract Remaining Maturity (Months)
86 months 
 
 
Cash Flow Hedging [Member] |
Foreign Currency Contract - Other [Member]
 
 
 
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
 
Net Gains/(Losses) Included in AOCI
(9.1)
(0.4)
29.0 
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months
(5.8)
 
 
Contract Remaining Maturity (Months)
36 months 
 
 
Cash Flow Hedging [Member] |
Coffee Contracts [Member]
 
 
 
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
 
Net Gains/(Losses) Included in AOCI
(6.6)
(1.6)
(5.7)
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months
(6.6)
 
 
Contract Remaining Maturity (Months)
4 months 
 
 
Net Investment Hedges [Member] |
Foreign Currency Contract - Other [Member]
 
 
 
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
 
Net Gains/(Losses) Included in AOCI
16.2 
1.3 
1.3 
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months
0.1 
 
 
Contract Remaining Maturity (Months)
0 months 
 
 
Net Investment Hedges [Member] |
ForeignExchangeYenDebt [Member]
 
 
 
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
 
Net Gains/(Losses) Included in AOCI
(2.2)
0 
0 
Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months
$ 0 
 
 
Contract Remaining Maturity (Months)
79 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) (USD $)
12 Months Ended 3 Months Ended 12 Months Ended
Oct. 1, 2017
Interest Rate Swap [Member]
Oct. 2, 2016
Interest Rate Swap [Member]
Sep. 27, 2015
Interest Rate Swap [Member]
Oct. 1, 2017
Cash Flow Hedging [Member]
Interest Rate Contract [Member]
Oct. 1, 2017
Cash Flow Hedging [Member]
Cross-Currency Swap [Member]
Oct. 1, 2017
Cash Flow Hedging [Member]
Foreign Currency Contract - Other [Member]
Oct. 1, 2017
Cash Flow Hedging [Member]
Coffee Contracts [Member]
Oct. 1, 2017
Net Investment Hedges [Member]
Foreign Currency Contract - Other [Member]
Oct. 1, 2017
Net Investment Hedges [Member]
ForeignExchangeYenDebt [Member]
Oct. 1, 2017
Designated as Hedging Instrument [Member]
Cash Flow Hedging [Member]
Interest Rate Contract [Member]
Oct. 2, 2016
Designated as Hedging Instrument [Member]
Cash Flow Hedging [Member]
Interest Rate Contract [Member]
Sep. 27, 2015
Designated as Hedging Instrument [Member]
Cash Flow Hedging [Member]
Interest Rate Contract [Member]
Oct. 1, 2017
Designated as Hedging Instrument [Member]
Cash Flow Hedging [Member]
Cross-Currency Swap [Member]
Oct. 2, 2016
Designated as Hedging Instrument [Member]
Cash Flow Hedging [Member]
Cross-Currency Swap [Member]
Sep. 27, 2015
Designated as Hedging Instrument [Member]
Cash Flow Hedging [Member]
Cross-Currency Swap [Member]
Oct. 1, 2017
Designated as Hedging Instrument [Member]
Cash Flow Hedging [Member]
Foreign Currency Contract - Other [Member]
Oct. 2, 2016
Designated as Hedging Instrument [Member]
Cash Flow Hedging [Member]
Foreign Currency Contract - Other [Member]
Sep. 27, 2015
Designated as Hedging Instrument [Member]
Cash Flow Hedging [Member]
Foreign Currency Contract - Other [Member]
Oct. 1, 2017
Designated as Hedging Instrument [Member]
Cash Flow Hedging [Member]
Coffee Contracts [Member]
Oct. 2, 2016
Designated as Hedging Instrument [Member]
Cash Flow Hedging [Member]
Coffee Contracts [Member]
Sep. 27, 2015
Designated as Hedging Instrument [Member]
Cash Flow Hedging [Member]
Coffee Contracts [Member]
Oct. 1, 2017
Designated as Hedging Instrument [Member]
Net Investment Hedges [Member]
Foreign Currency Contract - Other [Member]
Oct. 2, 2016
Designated as Hedging Instrument [Member]
Net Investment Hedges [Member]
Foreign Currency Contract - Other [Member]
Sep. 27, 2015
Designated as Hedging Instrument [Member]
Net Investment Hedges [Member]
Foreign Currency Contract - Other [Member]
Oct. 1, 2017
Designated as Hedging Instrument [Member]
Net Investment Hedges [Member]
ForeignExchangeYenDebt [Member]
Oct. 2, 2016
Designated as Hedging Instrument [Member]
Net Investment Hedges [Member]
ForeignExchangeYenDebt [Member]
Sep. 27, 2015
Designated as Hedging Instrument [Member]
Net Investment Hedges [Member]
ForeignExchangeYenDebt [Member]
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contract Remaining Maturity (Months)
 
 
 
0 months 
86 months 
36 months 
4 months 
0 months 
79 months 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative, Gain (Loss) on Derivative, Net
$ (5,200,000)
$ 0 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain/(Loss) Recognized in OCI Before Reclassifications
 
 
 
 
 
 
 
 
 
0 
(10,300,000)
(6,800,000)
59,500,000 
(75,700,000)
11,400,000 
1,800,000 
(25,400,000)
52,000,000 
(8,100,000)
1,700,000 
(9,000,000)
23,600,000 
0 
4,300,000 
(3,500,000)
0.0 
0.0 
Gains/(Losses) Reclassified from AOCI to Earnings
 
 
 
 
 
 
 
 
 
4,800,000 
5,000,000 
3,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gains/(Losses) Reclassified from AOCI to Earnings
 
 
 
 
 
 
 
 
 
 
 
 
57,200,000 
(101,100,000)
46,200,000 
11,400,000 
19,100,000 
26,100,000 
 
 
 
 
 
 
 
 
 
Gains/(Losses) Reclassified from AOCI to Earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ (2,700,000)
$ (2,800,000)
$ (3,500,000)
$ 0 
$ 0 
$ 7,200,000 
$ 0.0 
$ 0.0 
$ 0.0 
Derivative Financial Instruments (Pretax Gains and Losses on Derivative Contracts Not Designated as Hedging Instruments Recognized in Earnings) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
Foreign Currency Contract - Other [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Gains/(Losses) Recognized in Earnings
$ 4.6 
$ (5.7)
$ 27.1 
Dairy Contracts [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net
0 
(5.5)
(3.8)
Diesel and Other Contracts [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net
1.3 
(0.2)
(9.0)
Interest Rate Swap [Member]
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
Derivative, Gain (Loss) on Derivative, Net
$ (5.2)
$ 0 
$ 0 
Derivative Financial Instruments (Notional Amounts of Outstanding Derivative Contracts) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 1, 2017
Oct. 2, 2016
Interest Rate Contract [Member]
 
 
Derivative [Line Items]
 
 
Notional amounts of outstanding derivative contracts
$ 750 
$ 0 
Cross-Currency Swap [Member]
 
 
Derivative [Line Items]
 
 
Notional amounts of outstanding derivative contracts
514 
660 
Foreign Currency Contract - Other [Member]
 
 
Derivative [Line Items]
 
 
Notional amounts of outstanding derivative contracts
901 
688 
Coffee Contracts [Member]
 
 
Derivative [Line Items]
 
 
Notional amounts of outstanding derivative contracts
0 
7 
Dairy Contracts [Member]
 
 
Derivative [Line Items]
 
 
Notional amounts of outstanding derivative contracts
14 
76 
Diesel and Other Contracts [Member]
 
 
Derivative [Line Items]
 
 
Notional amounts of outstanding derivative contracts
$ 41 
$ 46 
Derivative Financial Instruments (Fair Value of Outstanding Derivative Contracts) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 1, 2017
Oct. 2, 2016
Derivative [Line Items]
 
 
Derivative Liabilities
$ 38.5 
$ 89.6 
Designated as Hedging Instrument [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
0 
 
Designated as Hedging Instrument [Member] |
Cross-Currency Swap [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
12.4 
0 
Derivative Liabilities
9.8 
57.0 
Designated as Hedging Instrument [Member] |
Foreign Currency - Other [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
7.7 
20.8 
Derivative Liabilities
20.8 
24.0 
Designated as Hedging Instrument [Member] |
Coffee Contracts [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
0 
1.8 
Derivative Liabilities
0 
0 
Designated as Hedging Instrument [Member] |
Net Investment Hedges [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
0.3 
0 
Derivative Liabilities
0 
0 
Designated as Hedging Instrument [Member] |
Interest Rate Swap [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
0 
0 
Derivative Liabilities
3.8 
0 
Not Designated as Hedging Instrument [Member] |
Foreign Currency - Other [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
15.8 
6.2 
Derivative Liabilities
1.4 
6.5 
Not Designated as Hedging Instrument [Member] |
Dairy Contracts [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
0 
1.5 
Derivative Liabilities
2.4 
1.6 
Not Designated as Hedging Instrument [Member] |
Diesel and Other Contracts [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
1.6 
3.8 
Derivative Liabilities
$ 0.3 
$ 0.5 
Fair Value Measurements (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 3 Months Ended 3 Months Ended
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
Oct. 1, 2017
Maximum [Member]
Jul. 2, 2017
Teavana [Member]
Oct. 1, 2017
Teavana [Member]
Jul. 2, 2017
Starbucks Coffee Switzerland [Member]
Oct. 1, 2017
Starbucks Coffee Switzerland [Member]
Available-for-sale Securities [Abstract]
 
 
 
 
 
 
 
 
Long-term investments, contractual maturity period
 
 
 
5 years 
 
 
 
 
Proceeds from sale of available-for-sale securities
$ 999.7 
$ 680.7 
$ 600.6 
 
 
 
 
 
Trading Securities [Abstract]
 
 
 
 
 
 
 
 
Management Deferred Compensation Plan liability
105.9 
101.5 
 
 
 
 
 
 
Trading securities, change in net unrealized holding gain (loss)
10.5 
3.6 
(4.5)
 
 
 
 
 
Goodwill, Impairment Loss
87.2 
0 
0 
 
69.3 
 
17.9 
 
Goodwill
1,539.2 
1,719.6 
1,575.4 
 
 
398.3 
 
37.0 
Other intangible assets
$ 441.4 
$ 516.3 
 
 
 
$ 117.2 
 
 
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 1, 2017
Oct. 2, 2016
Assets [Abstract]
 
 
Total short-term investments
$ 228.6 
$ 134.4 
Long-term investments: Available-for-sale securities
542.3 
1,141.7 
Total assets
3,271.0 
3,439.0 
Liabilities [Abstract]
 
 
Total liabilities
38.5 
89.6 
Cash and cash equivalents [Member]
 
 
Assets [Abstract]
 
 
Cash and cash equivalents
2,462.3 
2,128.8 
Short-term investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
151.7 
65.7 
Short-term investments: Trading securities
76.9 
68.7 
Total short-term investments
228.6 
134.4 
Prepaid expenses and other current assets [Member]
 
 
Assets [Abstract]
 
 
Prepaid expenses and other current assets: Derivative assets
13.4 
27.7 
Long-term investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
542.3 
1,141.7 
Other long-term assets [Member]
 
 
Assets [Abstract]
 
 
Other long-term assets: Derivative assets
24.4 
6.4 
Accrued liabilities [Member]
 
 
Liabilities [Abstract]
 
 
Accrued liabilities: Derivative liabilities
16.4 
18.0 
Other long-term liabilities [Member]
 
 
Liabilities [Abstract]
 
 
Other long-term liabilities: Derivative liabilities
22.1 
71.6 
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member]
 
 
Assets [Abstract]
 
 
Total assets
2,748.1 
2,574.6 
Liabilities [Abstract]
 
 
Total liabilities
2.5 
1.7 
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] |
Cash and cash equivalents [Member]
 
 
Assets [Abstract]
 
 
Cash and cash equivalents
2,462.3 
2,128.8 
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] |
Short-term investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
81.4 
15.8 
Short-term investments: Trading securities
76.9 
68.7 
Total short-term investments
158.3 
84.5 
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
0.1 
3.1 
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] |
Long-term investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
127.4 
358.2 
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] |
Other long-term assets [Member]
 
 
Assets [Abstract]
 
 
Other long-term 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
2.5 
1.7 
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 
0 
Significant Other Observable Inputs (Level 2) [Member]
 
 
Assets [Abstract]
 
 
Total assets
517.0 
858.7 
Liabilities [Abstract]
 
 
Total liabilities
36.0 
87.9 
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
70.3 
49.9 
Short-term investments: Trading securities
0 
0 
Total short-term investments
70.3 
49.9 
Significant Other Observable Inputs (Level 2) [Member] |
Prepaid expenses and other current assets [Member]
 
 
Assets [Abstract]
 
 
Prepaid expenses and other current assets: Derivative assets
13.3 
24.6 
Significant Other Observable Inputs (Level 2) [Member] |
Long-term investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
409.0 
777.8 
Significant Other Observable Inputs (Level 2) [Member] |
Other long-term assets [Member]
 
 
Assets [Abstract]
 
 
Other long-term assets: Derivative assets
24.4 
6.4 
Significant Other Observable Inputs (Level 2) [Member] |
Accrued liabilities [Member]
 
 
Liabilities [Abstract]
 
 
Accrued liabilities: Derivative liabilities
13.9 
16.3 
Significant Other Observable Inputs (Level 2) [Member] |
Other long-term liabilities [Member]
 
 
Liabilities [Abstract]
 
 
Other long-term liabilities: Derivative liabilities
22.1 
71.6 
Significant Unobservable Inputs (Level 3) [Member]
 
 
Assets [Abstract]
 
 
Total assets
5.9 
5.7 
Liabilities [Abstract]
 
 
Total liabilities
0 
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
5.9 
5.7 
Significant Unobservable Inputs (Level 3) [Member] |
Other long-term assets [Member]
 
 
Assets [Abstract]
 
 
Other long-term 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 
0 
Certificates of Deposit [Member] |
Short-term investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
2.3 
5.8 
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
2.3 
5.8 
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 
Agency obligations [Member] |
Short-term investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
7.5 
1.3 
Agency obligations [Member] |
Long-term investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
21.8 
44.4 
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 
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
7.5 
1.3 
Agency obligations [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Long-term investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
21.8 
44.4 
Agency obligations [Member] |
Significant Unobservable Inputs (Level 3) [Member] |
Short-term investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
0 
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
2.0 
2.6 
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 
0 
Commercial Paper [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Short-term investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
2.0 
2.6 
Commercial Paper [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] |
Short-term investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
49.4 
34.2 
Corporate debt securities [Member] |
Long-term investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
207.4 
459.3 
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
49.4 
34.2 
Corporate debt securities [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Long-term investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
207.4 
459.3 
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
5.9 
5.7 
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
5.9 
5.7 
Foreign government obligations [Member] |
Short-term investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
7.1 
5.5 
Foreign government obligations [Member] |
Long-term investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
17.1 
46.7 
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 
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 
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
7.1 
5.5 
Foreign government obligations [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Long-term investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
17.1 
46.7 
Foreign government obligations [Member] |
Significant Unobservable Inputs (Level 3) [Member] |
Short-term investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
0 
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 
0 
U.S. government treasury securities [Member] |
Short-term investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
81.4 
15.8 
U.S. government treasury securities [Member] |
Long-term investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
127.4 
358.2 
U.S. 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
81.4 
15.8 
U.S. 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
127.4 
358.2 
U.S. 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 
U.S. 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 
0 
U.S. 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 
U.S. government treasury securities [Member] |
Significant Unobservable Inputs (Level 3) [Member] |
Long-term investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
0 
0 
State and local government obligations [Member] |
Short-term investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
 
0.5 
State and local government obligations [Member] |
Long-term investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
7.0 
57.5 
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 
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
 
0.5 
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
7.0 
57.5 
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 
0 
Mortgage and other asset-backed securities [Member] |
Short-term investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
2.0 
 
Mortgage and other asset-backed securities [Member] |
Long-term investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
155.7 
169.9 
Mortgage and other asset-backed 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 
 
Mortgage and other 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 
0 
Mortgage and other asset-backed securities [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Short-term investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
2.0 
 
Mortgage and other asset-backed securities [Member] |
Significant Other Observable Inputs (Level 2) [Member] |
Long-term investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
155.7 
169.9 
Mortgage and other asset-backed securities [Member] |
Significant Unobservable Inputs (Level 3) [Member] |
Short-term investments [Member]
 
 
Assets [Abstract]
 
 
Short-term investments: Available-for-sale securities
0 
 
Mortgage and other asset-backed securities [Member] |
Significant Unobservable Inputs (Level 3) [Member] |
Long-term investments [Member]
 
 
Assets [Abstract]
 
 
Long-term investments: Available-for-sale securities
$ 0 
$ 0 
Inventories (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 1, 2017
Fixed-price Contract [Member]
 
Inventory [Line Items]
 
Amount of coffee committed to be purchased
$ 860 
Price-to-be-fixed Contract [Member]
 
Inventory [Line Items]
 
Amount of coffee committed to be purchased
336 
Designated as Hedging Instrument [Member]
 
Inventory [Line Items]
 
Derivative Assets
$ 0 
Inventories (Components of Inventories) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 1, 2017
Oct. 2, 2016
Inventory Disclosure [Abstract]
 
 
Unroasted coffee
$ 541.0 
$ 561.6 
Roasted coffee
301.1 
300.4 
Other merchandise held for sale
301.1 
308.6 
Packaging and other supplies
220.8 
207.9 
Total
$ 1,364.0 
$ 1,378.5 
Equity and Cost Investments (Equity Method Investments) (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 3 Months Ended
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
Oct. 1, 2017
Starbucks Coffee Korea Co., Ltd. [Member]
Oct. 1, 2017
President Starbucks Coffee (Shanghai) [Member]
Oct. 1, 2017
President Starbucks Coffee Corporation (Taiwan) [Member]
Oct. 1, 2017
Tata Starbucks Limited (India) [Member]
Oct. 1, 2017
North American Coffee Partnership [Member]
Oct. 1, 2017
Spain JV [Member]
Dec. 27, 2015
Spain JV [Member]
Schedule of Equity Method Investments [Line Items]
 
 
 
 
 
 
 
 
 
 
Equity method investments
$ 432.8 
$ 305.7 
 
 
 
 
 
 
 
 
Preexisting ownership percentage
 
 
 
50.00% 
50.00% 
50.00% 
50.00% 
50.00% 
 
49.00% 
Proceeds from Divestiture of Interest in Joint Venture
 
 
 
 
 
 
 
 
 
30.2 
Gain/(loss) resulting from divestiture
 
 
 
 
 
 
 
 
insignificant 
 
Revenues generated from related parties
187.3 
164.2 
153.4 
 
 
 
 
 
 
 
Related costs of sales
109.3 
97.5 
94.5 
 
 
 
 
 
 
 
Accounts receivables from equity method investees
$ 54.3 
$ 55.7 
 
 
 
 
 
 
 
 
Equity and Cost Investments (Cost Method Investments) (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 1, 2017
Oct. 2, 2016
Schedule of Cost-method Investments [Line Items]
 
 
Cost method investments
$ 48.8 
$ 48.8 
Company Store Investees [Member]
 
 
Schedule of Cost-method Investments [Line Items]
 
 
Cost method investments
$ 23.0 
 
Equity and Cost Investments (Equity and Cost Investments) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 1, 2017
Oct. 2, 2016
Equity Method Investments and Joint Ventures [Abstract]
 
 
Equity method investments
$ 432.8 
$ 305.7 
Cost method investments
48.8 
48.8 
Total
$ 481.6 
$ 354.5 
Supplemental Balance Sheet Information (Property, Plant and Equipment, net) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 1, 2017
Oct. 2, 2016
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 11,584.0 
$ 10,573.3 
Accumulated depreciation
(6,664.5)
(6,039.5)
Property, plant and equipment, net
4,919.5 
4,533.8 
Land [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
46.9 
46.6 
Buildings [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
481.7 
458.4 
Leasehold improvements [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
6,401.0 
5,892.9 
Store equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
2,110.7 
1,931.7 
Roasting equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
619.8 
605.4 
Furniture, fixtures and other [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
1,514.1 
1,366.9 
Work in progress [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 409.8 
$ 271.4 
Supplemental Balance Sheet Information (Accrued Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 1, 2017
Oct. 2, 2016
Balance Sheet Related Disclosures [Abstract]
 
 
Accrued compensation and related costs
$ 524.5 
$ 510.8 
Accrued occupancy costs
151.3 
137.5 
Accrued taxes
226.6 
368.4 
Accrued dividends payable
429.5 
365.1 
Accrued capital and other operating expenditures
602.6 
617.3 
Total accrued liabilities
$ 1,934.5 
$ 1,999.1 
Other Intangible Assets and Goodwill (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 3 Months Ended 3 Months Ended
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
Jul. 2, 2017
Teavana [Member]
Oct. 1, 2017
Teavana [Member]
Jul. 2, 2017
Starbucks Coffee Switzerland [Member]
Oct. 1, 2017
Starbucks Coffee Switzerland [Member]
Goodwill [Line Items]
 
 
 
 
 
 
 
Goodwill, Impairment Loss
$ 87.2 
$ 0 
$ 0 
$ 69.3 
 
$ 17.9 
 
Goodwill
1,539.2 
1,719.6 
1,575.4 
 
398.3 
 
37.0 
Other intangible assets
441.4 
516.3 
 
 
117.2 
 
 
Amortization expense for finite-lived intangible assets
$ 57.5 
$ 57.3 
$ 50.0 
 
 
 
 
Other Intangible Assets and Goodwill (Indefinite-Lived Intangible Assets) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 1, 2017
Oct. 2, 2016
Indefinite-lived Intangible Assets [Line Items]
 
 
Indefinite-lived intangible assets
$ 227.2 
$ 222.9 
Trade Names, trademarks and patents [Member]
 
 
Indefinite-lived Intangible Assets [Line Items]
 
 
Indefinite-lived intangible assets
212.1 
207.8 
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
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
Goodwill [Line Items]
 
 
 
Goodwill, beginning balance
$ 1,719.6 
$ 1,575.4 
 
Acquisition/(divestiture)
(7.6)
2.7 
 
Impairment
(87.2)
0 
0 
Other
(85.6)
141.5 1
 
Goodwill, ending balance
1,539.2 
1,719.6 
1,575.4 
Americas [Member]
 
 
 
Goodwill [Line Items]
 
 
 
Goodwill, beginning balance
211.6 
211.2 
 
Acquisition/(divestiture)
0 
0 
 
Impairment
0 
 
 
Other
1.5 
0.4 1
 
Goodwill, ending balance
213.1 
211.6 
 
China/Asia Pacific [Member]
 
 
 
Goodwill [Line Items]
 
 
 
Goodwill, beginning balance
944.9 
804.1 
 
Acquisition/(divestiture)
(7.6)
0 
 
Impairment
0 
 
 
Other
(87.1)
140.8 1
 
Goodwill, ending balance
850.2 
944.9 
 
EMEA [Member]
 
 
 
Goodwill [Line Items]
 
 
 
Goodwill, beginning balance
55.1 
57.4 
 
Acquisition/(divestiture)
0 
(2.6)
 
Impairment
17.9 
 
 
Other
0 
0.3 1
 
Goodwill, ending balance
37.2 
55.1 
 
Channel Development [Member]
 
 
 
Goodwill [Line Items]
 
 
 
Goodwill, beginning balance
23.8 
23.8 
 
Acquisition/(divestiture)
0 
0 
 
Impairment
0 
 
 
Other
0 
0 1
 
Goodwill, ending balance
23.8 
23.8 
 
All Other Segments [Member]
 
 
 
Goodwill [Line Items]
 
 
 
Goodwill, beginning balance
484.2 
478.9 
 
Acquisition/(divestiture)
0 
5.3 
 
Impairment
69.3 
 
 
Other
0 
0 1
 
Goodwill, ending balance
$ 414.9 
$ 484.2 
 
[1] “Other” primarily consists of changes in the goodwill balance as a result of foreign currency translation. During the third quarter of fiscal 2017, management finalized its long-term strategy for the Teavana reporting unit. The plan emphasizes sales of premium Teavana™ tea products at Starbucks branded stores and, to a lesser extent, consumer product channels. The existing portfolio of Teavana-branded retail stores are expected to be closed over the next several quarters. This change in strategic direction triggered an impairment test first of the retail store assets and then an impairment test of the goodwill asset, which also coincided with our annual goodwill testing process. For goodwill, we utilized a combination of income and market approaches to determine the implied fair value of the reporting unit. These approaches used primarily unobservable inputs, including discount, sales growth and royalty rates and valuation multiples of a selection of similar publicly traded companies, which are considered Level 3 fair value measurements. We then compared the implied fair value with the carrying value and recognized a goodwill impairment charge of $69.3 million, thus reducing goodwill of the Teavana reporting unit to $398.3 million as of October 1, 2017. The remaining intangible assets for the Teavana reporting unit of $117.2 million, consisting primarily of the indefinite-lived tradename and finite-lived tea recipes, were also tested, and no impairment losses were recorded.The ongoing impact of the macro economic challenges we have experienced in our EMEA company-owned markets and the continued strength of the Swiss franc, when compared to the relatively inexpensive euro in surrounding countries, have posed strong headwinds to our Switzerland retail reporting unit. Our latest mitigation efforts incorporated into our Level 3 fair value calculation for our Switzerland retail business are not expected to fully recover the reporting unit’s carrying value given the sustained nature of these and other external factors on consumer behavior and tourism. As a result, we recorded a goodwill impairment charge of $17.9 million in the third quarter of fiscal 2017, and, as of October 1, 2017, we had approximately $37 million of goodwill remaining on our condensed consolidated balance sheet associated with this reporting unit.
Other Intangible Assets and Goodwill (Finite-Lived Intangible Assets) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 1, 2017
Oct. 2, 2016
Finite-Lived Intangible Assets [Line Items]
 
 
Gross carrying amount
$ 409.0 
$ 441.5 
Accumulated amortization
(194.8)
(148.1)
Net Carrying Amount
214.2 
293.4 
Acquired and reacquired rights [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross carrying amount
328.8 
361.3 
Accumulated amortization
(154.2)
(114.5)
Net Carrying Amount
174.6 
246.8 
Acquired trade secrets and processes [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross carrying amount
27.6 
27.6 
Accumulated amortization
(13.7)
(11.0)
Net Carrying Amount
13.9 
16.6 
Trade Names, trademarks and patents [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross carrying amount
31.5 
29.4 
Accumulated amortization
(17.6)
(15.2)
Net Carrying Amount
13.9 
14.2 
Licensing agreements [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross carrying amount
14.4 
16.0 
Accumulated amortization
(3.8)
(2.8)
Net Carrying Amount
10.6 
13.2 
Other finite-lived intangible assets [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Gross carrying amount
6.7 
7.2 
Accumulated amortization
(5.5)
(4.6)
Net Carrying Amount
$ 1.2 
$ 2.6 
Other Intangible Assets and Goodwill (Estimated Future Amortization Expense) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 1, 2017
Oct. 2, 2016
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
 
 
2017
$ 55.7 
 
2018
54.5 
 
2019
54.3 
 
2020
31.4 
 
Finite-Lived Intangible Assets, Amortization Expense, Year Five
8.0 
 
Thereafter
10.3 
 
Net Carrying Amount
$ 214.2 
$ 293.4 
Debt (Narrative) (Details)
3 Months Ended 12 Months Ended 12 Months Ended 1 Months Ended 1 Months Ended 1 Months Ended 3 Months Ended 0 Months Ended 1 Months Ended 1 Months Ended
Jan. 1, 2017
USD ($)
Oct. 1, 2017
USD ($)
Oct. 2, 2016
USD ($)
Sep. 27, 2015
USD ($)
Oct. 1, 2017
Revolving Credit Facility [Member]
USD ($)
Oct. 1, 2017
Revolving Credit Facility [Member]
Eurocurrency Rate [Member]
Oct. 1, 2017
Revolving Credit Facility [Member]
Base Rate [Member]
Oct. 1, 2017
Senior Notes [Member]
Oct. 1, 2017
Commercial Paper [Member]
USD ($)
Oct. 1, 2017
Commercial Paper [Member]
Maximum [Member]
Mar. 31, 2017
PointThreeSevenTwoPercentageYenDenominatedSeniorNotes [Member]
JPY (¥)
Oct. 1, 2017
PointThreeSevenTwoPercentageYenDenominatedSeniorNotes [Member]
USD ($)
Oct. 2, 2016
PointThreeSevenTwoPercentageYenDenominatedSeniorNotes [Member]
USD ($)
Oct. 1, 2017
Point Eight Seven Five Percentage Senior Notes [Member]
USD ($)
Oct. 2, 2016
Point Eight Seven Five Percentage Senior Notes [Member]
USD ($)
Oct. 1, 2017
Two Point Four Five Percentage Senior Notes [Member]
USD ($)
Oct. 2, 2016
Two Point Four Five Percentage Senior Notes [Member]
USD ($)
May 31, 2016
Two Point Four Five Percentage Senior Notes [Member]
Senior Notes [Member]
Jun. 26, 2016
Two Point Four Five Percentage Senior Notes [Member]
Senior Notes [Member]
USD ($)
Oct. 1, 2017
Two Point One Percentage Senior Notes [Member]
USD ($)
Oct. 2, 2016
Two Point One Percentage Senior Notes [Member]
USD ($)
Jun. 26, 2016
Two Point One Percentage Senior Notes [Member]
USD ($)
May 31, 2016
Two Point One Percentage Senior Notes [Member]
Senior Notes [Member]
Feb. 29, 2016
Two Point One Percentage Senior Notes [Member]
Senior Notes [Member]
Jun. 26, 2016
Two Point One Percentage Senior Notes [Member]
Senior Notes [Member]
USD ($)
Mar. 27, 2016
Two Point One Percentage Senior Notes [Member]
Senior Notes [Member]
USD ($)
Sep. 27, 2015
Six Point Two Five Percentage Senior Notes [Member]
USD ($)
Jul. 1, 2015
Six Point Two Five Percentage Senior Notes [Member]
Senior Notes [Member]
USD ($)
Sep. 27, 2015
Six Point Two Five Percentage Senior Notes [Member]
Senior Notes [Member]
Oct. 1, 2017
Two Point Seven Percentage Senior Notes [Member]
USD ($)
Oct. 2, 2016
Two Point Seven Percentage Senior Notes [Member]
USD ($)
Jun. 28, 2015
Two Point Seven Percentage Senior Notes [Member]
Senior Notes [Member]
USD ($)
Oct. 1, 2017
Four Point Three Percentage Senior Notes [Member]
USD ($)
Oct. 2, 2016
Four Point Three Percentage Senior Notes [Member]
USD ($)
Jun. 28, 2015
Four Point Three Percentage Senior Notes [Member]
Senior Notes [Member]
USD ($)
Unsecured revolving credit facility
 
 
 
 
$ 1,500,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount of credit facility available for issuances of letters of credit
 
 
 
 
150,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maturity date of credit facility
 
 
 
 
Nov. 06, 2020 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum increase in commitment amount allowable under the credit facility
 
 
 
 
750,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Incremental interest rate over variable rate loans
 
 
 
 
 
0.565% 
0.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit covenant compliance
 
 
 
 
As of October 1, 2017, we were in compliance with all applicable covenants. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Borrowing Capacity, Amount
 
 
 
 
 
 
 
 
1,000,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Term
 
 
 
 
 
 
 
 
 
397 days 
7 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Combined borrowing limit of Commercial Paper Program and Credit Facility
 
 
 
 
 
 
 
 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issuance date of Senior Notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
May 11, 2016 
 
 
 
 
May 11, 2016 
Feb. 04, 2016 
 
 
 
 
 
 
 
Jun. 01, 2015 
 
 
 
Face value of Senior Notes
 
 
 
 
 
 
 
 
 
 
85,000,000,000 
755,300,000 
0 
0 
400,000,000 
500,000,000 
500,000,000 
 
500,000,000 
500,000,000 
500,000,000 
 
 
 
 
500,000,000 
 
 
 
500,000,000 
500,000,000 
500,000,000 
350,000,000 
350,000,000 
350,000,000 
Maturity date of Senior Notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jun. 15, 2026 
 
 
 
 
 
Feb. 04, 2021 
 
 
 
 
 
 
 
Jun. 15, 2022 
 
 
Jun. 15, 2045 
Stated Interest Rate
 
 
 
 
 
 
 
 
 
 
0.372% 
0.372% 
 
0.875% 
 
2.45% 
 
 
2.45% 
2.10% 
 
 
 
 
 
2.10% 
 
 
6.25% 
2.70% 
 
2.70% 
4.30% 
 
4.30% 
Face amount from reopening of previous Senior Notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
250,000,000 
250,000,000 
250,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Face amount for 2021 Notes, collectively
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
750,000,000 
 
 
 
 
 
 
 
 
 
 
Debt redemption, amount
400,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
550,000,000 
 
 
 
 
 
 
 
Loss on extinguishment of debt
 
$ 0 
$ 0 
$ (61,100,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ (61,100,000)
 
 
 
 
 
 
 
 
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 October 2, 2017, we were in compliance with each of these covenants. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Debt (Summary of long-term debt maturities) (Details)
In Millions, unless otherwise specified
3 Months Ended 1 Months Ended
Jan. 1, 2017
USD ($)
Oct. 1, 2017
USD ($)
Oct. 2, 2016
USD ($)
Mar. 31, 2017
PointThreeSevenTwoPercentageYenDenominatedSeniorNotes [Member]
JPY (¥)
Oct. 1, 2017
PointThreeSevenTwoPercentageYenDenominatedSeniorNotes [Member]
USD ($)
Oct. 2, 2016
PointThreeSevenTwoPercentageYenDenominatedSeniorNotes [Member]
USD ($)
Oct. 1, 2017
Point Eight Seven Five Percentage Senior Notes [Member]
USD ($)
Oct. 2, 2016
Point Eight Seven Five Percentage Senior Notes [Member]
USD ($)
Oct. 1, 2017
ForeignExchangeYenDebt [Member]
Designated as Hedging Instrument [Member]
JPY (¥)
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
HedgeAccountingAdjustmentsRelatedToLongTermDebt
 
$ (5.2)
$ 0 
 
 
 
 
 
 
Face value of Senior Notes
 
 
 
85,000.0 
755.3 
0 
0 
400.0 
 
Derivative, Notional Amount
 
 
 
 
 
 
 
 
81,100 
Debt redemption, amount
400 
 
 
 
 
 
 
 
 
Debt Instrument, Term
 
 
 
7 years 
 
 
 
 
 
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year
 
0 
 
 
 
 
 
 
 
2018
 
350.0 
 
 
 
 
 
 
 
2019
 
0 
 
 
 
 
 
 
 
2020
 
750.0 
 
 
 
 
 
 
 
2021
 
500.0 
 
 
 
 
 
 
 
Thereafter
 
2,355.3 
 
 
 
 
 
 
 
Total
 
$ 3,955.3 
$ 3,600.0 
 
 
 
 
 
 
Stated Interest Rate
 
 
 
0.372% 
0.372% 
 
0.875% 
 
 
Leases (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 24 Months Ended 12 Months Ended
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
Oct. 1, 2017
Assets Held under Financing Leases [Member]
Oct. 2, 2016
Assets Held under Financing Leases [Member]
Sep. 30, 2018
Contract Termination [Member]
Scenario, Forecast [Member]
Oct. 1, 2017
Restructuring Charges [Member]
Contract Termination [Member]
Leases [Abstract]
 
 
 
 
 
 
 
Sublease income recognized
$ 15.5 
$ 14.6 
$ 11.9 
 
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
 
 
 
 
Property, plant and equipment, gross
11,584.0 
10,573.3 
 
94.3 
92.7 
 
 
Accumulated depreciation
6,664.5 
6,039.5 
 
9.0 
6.2 
 
 
Business Exit Costs
 
 
 
 
 
$ 153.7 
$ 15.7 
Leases (Rent Expense Under Operating Lease Agreements) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
Leases [Abstract]
 
 
 
Minimum rent
$ 1,185.7 
$ 1,092.5 
$ 1,026.3 
Contingent rent
143.5 
130.7 
111.5 
Total
$ 1,329.2 
$ 1,223.2 
$ 1,137.8 
Leases (Minimum Future Rental Payments Under Non-Cancelable Operating Leases and Lease Financing Arrangements) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 1, 2017
Leases [Abstract]
 
Minimum future rental payments, operating leases, Year 1
$ 1,213.1 
Minimum future rental payments, operating leases, Year 2
1,141.6 
Minimum future rental payments, operating leases, Year 3
1,068.6 
Minimum future rental payments, operating leases, Year 4
986.9 
Minimum future rental payments, operating leases, Year 5
888.1 
Minimum future rental payments, operating leases, Thereafter
3,315.2 
Total minimum future rental payments, operating leases
8,613.5 
Minimum future rental payments, lease financing arrangements, Year 1
4.1 
Minimum future rental payments, lease financing arrangements, Year 2
4.1 
Minimum future rental payments, lease financing arrangements, Year 3
4.1 
Minimum future rental payments, lease financing arrangements, Year 4
4.0 
Minimum future rental payments, lease financing arrangements, Year 5
3.9 
Minimum future rental payments, lease financing arrangements, Thereafter
38.9 
Total minimum future rental payments, lease financing arrangements
$ 59.1 
Equity (Narrative) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Oct. 1, 2017
Oct. 2, 2016
Equity [Abstract]
 
 
Authorized shares of common stock
2,400,000,000 
2,400,000,000 
Common stock, par value
$ 0.001 
$ 0.001 
Authorized shares of preferred stock
7,500,000 
 
Outstanding shares of preferred stock
0 
 
Increase in share of net assets of Starbucks Japan at IPO
$ 39.4 
$ 39.4 
Other Additional Capital related to difference between carrying value of noncontrolling interest and cash paid to acquire the noncontrolling interest
1.7 
1.7 
Shares of common stock repurchased
37,500,000 
34,900,000 
Total cost of common stock repurchased
$ 2,100.0 
$ 2,000.0 
Shares available for repurchase
80,300,000 
 
Equity (Changes in Components Of Accumulated Other Comprehensive Income, Net Of Tax) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
Sep. 28, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
$ 5,457.0 
$ 5,890.7 
$ 5,819.8 
$ 5,273.7 
Net gains/(losses) in AOCI, beginning of period
(108.4)
 
 
 
Other comprehensive income/(loss)
(47.2)
91.0 
(224.7)
 
Net gains/(losses) in AOCI, end of period
(155.6)
(108.4)
 
 
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
(2.5)
1.1 
(0.1)
(0.4)
Net gains/(losses) recognized in OCI before reclassifications, net of tax
(6.6)
2.2 
0.9 
 
Net (gains)/losses reclassified from AOCI to earnings, net of tax
3.0 
(1.0)
(0.6)
 
Other comprehensive income/(loss)
(3.6)
1.2 
0.3 
 
Purchase of noncontrolling interest
 
 
0 
 
Cash Flow Hedges [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
(4.1)
10.9 
25.6 
46.3 
Net gains/(losses) recognized in OCI before reclassifications, net of tax
40.6 
(82.1)
30.8 
 
Net (gains)/losses reclassified from AOCI to earnings, net of tax
(55.6)
67.4 
(51.5)
 
Other comprehensive income/(loss)
(15.0)
(14.7)
(20.7)
 
Purchase of noncontrolling interest
 
 
0 
 
Accumulated Net Investment Hedge Gain (Loss) Attributable to Parent [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
 
1.3 
1.3 
3.2 
Net gains/(losses) in AOCI, beginning of period
1.3 
1.3 
 
 
Net gains/(losses) recognized in OCI before reclassifications, net of tax
12.7 
0 
2.7 
 
Net (gains)/losses reclassified from AOCI to earnings, net of tax
0 
0 
(4.6)
 
Other comprehensive income/(loss)
12.7 
0 
(1.9)
 
Purchase of noncontrolling interest
 
 
0 
 
Net gains/(losses) in AOCI, end of period
14.0 
1.3 
1.3 
 
Translation Adjustment [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
 
(121.7)
(226.2)
(23.8)
Net gains/(losses) in AOCI, beginning of period
(121.7)
(226.2)
 
 
Net gains/(losses) recognized in OCI before reclassifications, net of tax
(40.7)
104.5 
(185.6)
 
Net (gains)/losses reclassified from AOCI to earnings, net of tax
(0.6)
0 
14.3 
 
Other comprehensive income/(loss)
(41.3)
104.5 
(171.3)
 
Purchase of noncontrolling interest
 
 
(31.1)
 
Net gains/(losses) in AOCI, end of period
(163.0)
(121.7)
(226.2)
 
Parent [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
5,450.1 
5,884.0 
5,818.0 
5,272.0 
Net gains/(losses) in AOCI, beginning of period
(108.4)
(199.4)
25.3 
 
Net gains/(losses) recognized in OCI before reclassifications, net of tax
6.0 
24.6 
(151.2)
 
Net (gains)/losses reclassified from AOCI to earnings, net of tax
(53.2)
66.4 
(42.4)
 
Other comprehensive income/(loss)
(47.2)
91.0 
(193.6)
 
Purchase of noncontrolling interest
 
 
(31.1)
 
Net gains/(losses) in AOCI, end of period
$ (155.6)
$ (108.4)
$ (199.4)
 
Equity (Impact of Reclassifications from Accumulated Other Comprehensive Income on Earnings (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended
Oct. 1, 2017
Jul. 2, 2017
Apr. 2, 2017
Jan. 1, 2017
Oct. 2, 2016
Jun. 26, 2016
Mar. 27, 2016
Dec. 27, 2015
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
Sep. 28, 2014
Oct. 1, 2017
Reclassification out of Accumulated Other Comprehensive Income [Member]
Oct. 2, 2016
Reclassification out of Accumulated Other Comprehensive Income [Member]
Sep. 27, 2015
Reclassification out of Accumulated Other Comprehensive Income [Member]
Oct. 1, 2017
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
Oct. 2, 2016
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
Sep. 27, 2015
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
Sep. 28, 2014
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
Oct. 1, 2017
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
Reclassification out of Accumulated Other Comprehensive Income [Member]
Oct. 2, 2016
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
Reclassification out of Accumulated Other Comprehensive Income [Member]
Sep. 27, 2015
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
Reclassification out of Accumulated Other Comprehensive Income [Member]
Oct. 1, 2017
Cash Flow Hedges [Member]
Oct. 2, 2016
Cash Flow Hedges [Member]
Sep. 27, 2015
Cash Flow Hedges [Member]
Sep. 28, 2014
Cash Flow Hedges [Member]
Oct. 1, 2017
Accumulated Net Investment Hedge Gain (Loss) Attributable to Parent [Member]
Oct. 2, 2016
Accumulated Net Investment Hedge Gain (Loss) Attributable to Parent [Member]
Sep. 27, 2015
Accumulated Net Investment Hedge Gain (Loss) Attributable to Parent [Member]
Sep. 28, 2014
Accumulated Net Investment Hedge Gain (Loss) Attributable to Parent [Member]
Oct. 1, 2017
Accumulated Net Investment Hedge Gain (Loss) Attributable to Parent [Member]
Reclassification out of Accumulated Other Comprehensive Income [Member]
Oct. 2, 2016
Accumulated Net Investment Hedge Gain (Loss) Attributable to Parent [Member]
Reclassification out of Accumulated Other Comprehensive Income [Member]
Sep. 27, 2015
Accumulated Net Investment Hedge Gain (Loss) Attributable to Parent [Member]
Reclassification out of Accumulated Other Comprehensive Income [Member]
Oct. 1, 2017
Translation Adjustment [Member]
Oct. 2, 2016
Translation Adjustment [Member]
Sep. 27, 2015
Translation Adjustment [Member]
Sep. 28, 2014
Translation Adjustment [Member]
Oct. 1, 2017
Translation Adjustment [Member]
Reclassification out of Accumulated Other Comprehensive Income [Member]
Oct. 2, 2016
Translation Adjustment [Member]
Reclassification out of Accumulated Other Comprehensive Income [Member]
Sep. 27, 2015
Translation Adjustment [Member]
Reclassification out of Accumulated Other Comprehensive Income [Member]
Sep. 27, 2015
Interest Rate Contract [Member]
Cash Flow Hedges [Member]
Reclassification out of Accumulated Other Comprehensive Income [Member]
Oct. 1, 2017
Interest Rate Contract [Member]
Cash Flow Hedges [Member]
Reclassification out of Accumulated Other Comprehensive Income [Member]
Oct. 2, 2016
Interest Rate Contract [Member]
Cash Flow Hedges [Member]
Reclassification out of Accumulated Other Comprehensive Income [Member]
Sep. 27, 2015
Interest Rate Contract [Member]
Cash Flow Hedges [Member]
Reclassification out of Accumulated Other Comprehensive Income [Member]
Oct. 1, 2017
Cross-Currency Swap [Member]
Cash Flow Hedges [Member]
Reclassification out of Accumulated Other Comprehensive Income [Member]
Oct. 2, 2016
Cross-Currency Swap [Member]
Cash Flow Hedges [Member]
Reclassification out of Accumulated Other Comprehensive Income [Member]
Sep. 27, 2015
Cross-Currency Swap [Member]
Cash Flow Hedges [Member]
Reclassification out of Accumulated Other Comprehensive Income [Member]
Oct. 1, 2017
Foreign Currency Contract - Other [Member]
Cash Flow Hedges [Member]
Reclassification out of Accumulated Other Comprehensive Income [Member]
Oct. 2, 2016
Foreign Currency Contract - Other [Member]
Cash Flow Hedges [Member]
Reclassification out of Accumulated Other Comprehensive Income [Member]
Sep. 27, 2015
Foreign Currency Contract - Other [Member]
Cash Flow Hedges [Member]
Reclassification out of Accumulated Other Comprehensive Income [Member]
Oct. 1, 2017
Foreign Currency and Coffee Contracts [Member]
Cash Flow Hedges [Member]
Reclassification out of Accumulated Other Comprehensive Income [Member]
Oct. 2, 2016
Foreign Currency and Coffee Contracts [Member]
Cash Flow Hedges [Member]
Reclassification out of Accumulated Other Comprehensive Income [Member]
Sep. 27, 2015
Foreign Currency and Coffee Contracts [Member]
Cash Flow Hedges [Member]
Reclassification out of Accumulated Other Comprehensive Income [Member]
Sep. 27, 2015
Starbucks Coffee Japan Ltd [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impact to accumulated other comprehensive income from purchase of noncontrolling interest
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 0 
 
 
 
 
 
 
$ 0 
 
 
 
$ 0 
 
 
 
 
 
 
$ 31.1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
5,457.0 
 
 
 
5,890.7 
 
 
 
5,457.0 
5,890.7 
5,819.8 
5,273.7 
 
 
 
(2.5)
1.1 
(0.1)
(0.4)
 
 
 
(4.1)
10.9 
25.6 
46.3 
 
1.3 
1.3 
3.2 
 
 
 
 
(121.7)
(226.2)
(23.8)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amounts Reclassified from AOCI, Interest income and other, net
 
 
 
 
 
 
 
 
275.3 
108.0 
43.0 
 
 
 
 
 
 
 
 
(4.1)
1.6 
1.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.6 
0 
(7.1)
 
 
 
 
57.2 
(101.1)
46.2 
 
 
 
 
 
 
 
Amounts Reclassified from AOCI, Interest expense
 
 
 
 
 
 
 
 
(92.5)
(81.3)
(70.5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.0 
4.8 
5.0 
3.2 
 
 
 
 
 
 
 
 
 
 
Amounts Reclassified from AOCI, Revenue
5,698.3 
5,661.5 
5,294.0 
5,732.9 
5,711.2 
5,238.0 
4,993.2 
5,373.5 
22,386.8 
21,315.9 
19,162.7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.0 
4.9 
14.0 
 
 
 
 
Amounts Reclassified from AOCI, Cost of sales including occupancy costs
 
 
 
 
 
 
 
 
(9,038.2)
(8,511.1)
(7,787.5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.7 
11.4 
8.6 
 
Gain resulting from acquisition of joint venture
 
 
 
 
 
 
 
 
0 
0 
390.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
0 
7.2 
 
 
 
 
0 
0 
(7.2)
 
 
 
 
 
 
 
 
 
 
 
 
 
390.6 
Amounts Reclassified, from AOCI, Total before tax
 
 
 
 
 
 
 
 
 
 
 
 
67.2 
(78.2)
65.9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amounts Reclassified from AOCI, Tax (expense)/benefit
 
 
 
 
 
 
 
 
(1,432.6)
(1,379.7)
(1,143.7)
 
(14.0)
11.8 
(23.5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amounts Reclassified from AOCI, Net of tax
 
 
 
 
 
 
 
 
 
 
 
 
$ 53.2 
$ (66.4)
$ 42.4 
$ 3.0 
$ (1.0)
$ (0.6)
 
 
 
 
$ (55.6)
$ 67.4 
$ (51.5)
 
$ 0 
$ 0 
$ (4.6)
 
 
 
 
$ (0.6)
$ 0 
$ 14.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preexisting ownership percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
39.50% 
Employee Stock and Benefit Plans (Narrative) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
Maximum permitted contribution to Employee Stock Purchase Plan, percent
10.00% 
 
 
Discounted stock purchase price, percent of market value
95.00% 
 
 
Number of shares issued under plan
0.5 
 
 
Matching contributions
$ 101.4 
$ 86.2 
$ 70.9 
Stock Options and Restricted Stock Units [Member]
 
 
 
Common stock available for issuance
73.5 
 
 
Employee Stock [Member]
 
 
 
Common stock available for issuance
13.3 
 
 
Stock Options [Member]
 
 
 
Award expiration period (years)
10 years 
 
 
Total unrecognized stock-based compensation expense, net of estimated forfeitures
38 
 
 
Weighted average recognition period for total unrecognized stock-based compensation expense (in years)
2 years 8 months 12 days 
 
 
Total intrinsic value of stock options exercised
181 
254 
358 
Total fair value of options vested
40 
37 
36 
Restricted Stock Units (RSUs) [Member]
 
 
 
Total unrecognized stock-based compensation expense, net of estimated forfeitures
75 
 
 
Weighted average recognition period for total unrecognized stock-based compensation expense (in years)
2 years 
 
 
Granted, weighted average grant date fair value per share
$ 54,300,000.00 
$ 58.81 
$ 38.56 
Total fair value of RSUs vested
$ 182 
$ 169 
$ 137 
Director [Member] |
Stock Options [Member] |
Minimum [Member]
 
 
 
Award vesting period for non-employee directors (years)
1 year 
 
 
Director [Member] |
Stock Options [Member] |
Maximum [Member]
 
 
 
Award vesting period for non-employee directors (years)
3 years 
 
 
Employee Stock and Benefit Plans (Stock-Based Compensation Expense Recognized in the Consolidated Financial Statements) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 28, 2014
Oct. 1, 2017
Oct. 2, 2016
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
Stock-based compensation expense
$ 209.8 
$ 176.0 
$ 218.1 
Total related tax benefit
72.3 
57.6 
73.0 
Total capitalized stock-based compensation included in net property, plant and equipment and inventories on the consolidated balance sheets
1.9 
1.9 
1.5 
Stock Options [Member]
 
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
Stock-based compensation expense
37.8 
44.3 
42.7 
Restricted Stock Units (RSUs) [Member]
 
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
Stock-based compensation expense
$ 172.0 
$ 131.7 
$ 175.4 
Employee Stock and Benefit Plans (Employee Stock Options Granted During the Period, Valuation Assumptions) (Details)
12 Months Ended
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
 
 
Expected term (in years)
3 years 10 months 24 days 
3 years 10 months 24 days 
4 years 2 months 12 days 
Expected stock price volatility
21.60% 
23.90% 
22.30% 
Risk-free interest rate
1.50% 
1.20% 
1.10% 
Expected dividend yield
1.80% 
1.30% 
1.60% 
Weighted average grant price
$ 56.12 
$ 60.20 
$ 39.89 
Estimated fair value per option granted
$ 8.56 
$ 10.54 
$ 6.58 
Employee Stock and Benefit Plans (Stock Option Transactions) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
Shares Subject to Options
 
 
 
Outstanding, September 27, 2015, Shares Subject to Options
31.3 
 
 
Granted, Shares Subject to Options
7.1 
 
 
Exercised, Shares Subject to Options
(5.3)
 
 
Expired/forfeited, Shares Subject to Options
(1.7)
 
 
Outstanding, October 2, 2016, Shares Subject to Options
31.4 
31.3 
 
Exercisable, October 2, 2016, Shares Subject to Options
19.7 
 
 
Vested and expected to vest, October 2, 2016, Shares Subject to Options
30.0 
 
 
Weighted Average Exercise Price per Share
 
 
 
Outstanding, September 27, 2015, Weighted Average Exercise Price per Share Beginning Balance
$ 30.59 
 
 
Granted, Weighted Average Exercise Price per Share
$ 56.12 
$ 60.20 
$ 39.89 
Exercised, Weighted Average Exercise Price per Share
$ 23.16 
 
 
Expired/forfeited, Weighted Average Exercise Price per Share
$ 51.13 
 
 
Outstanding, October 2, 2016, Weighted Average Exercise Price per Share Ending Balance
$ 36.51 
$ 30.59 
 
Exercisable at October 2, 2016, Weighted Average Exercise Price per Share
$ 26.42 
 
 
Vested and expected to vest, October 2, 2016, Weighted Average Exercise Price per Share
$ 35.60 
 
 
Additional Disclosures
 
 
 
Outstanding, Weighted Average Remaining Contractual Life (Years)
5 years 9 months 18 days 
5 years 9 months 18 days 
 
Exercisable, October 2, 2016, Weighted Average Remaining Contractual Life (Years)
4 years 2 months 18 days 
 
 
Vested and expected to vest, October 2, 2016, Weighted Average Remaining Contractual Life (Years)
5 years 7 months 6 days 
 
 
Aggregate Intrinsic Value
 
 
 
Outstanding, Aggregate Intrinsic Value
$ 589 
$ 771 
 
Exercisable, October 2, 2016, Aggregate Intrinsic Value
552 
 
 
Vested and expected to vest, October 2, 2016, Aggregate Intrinsic Value
$ 587 
 
 
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
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
Restricted Stock Units (RSUs) [Member]
 
 
 
Nonvested, Number of Shares
 
 
 
Nonvested, September 27, 2015, Number of Shares
8.3 
 
 
Granted, Number of Shares
5.1 
 
 
Vested, Number of Shares
(4.3)
 
 
Forfeited/canceled, Number of Shares
(1.5)
 
 
Nonvested, October 2, 2016, Number of Shares
7.6 
8.3 
 
Weighted Average Grant Date Fair Value per Share
 
 
 
Nonvested, September 27, 2015, Weighted Average Grant Date Fair Value per Share
$ 46.15 
 
 
Granted, Weighted Average Grant Date Fair Value per Share
$ 54,300,000.00 
$ 58.81 
$ 38.56 
Vested, Weighted Average Grant Date Fair Value per Share
$ 42,090,000.00 
 
 
Forfeited/canceled, Weighted Average Grant Date Fair Value per Share
$ 51,050,000.00 
 
 
Nonvested, October 2, 2016, Weighted Average Grant Date Fair Value per Share
$ 52,060,000.00 
$ 46.15 
 
Additional Disclosures
 
 
 
Nonvested, Weighted Average Remaining Contractual Life (Years)
10 months 24 days 
10 months 24 days 
 
Nonvested, Aggregate Intrinsic Value
$ 410 
$ 448 
 
Income Taxes (Narrative) (Details) (USD $)
12 Months Ended
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
Sep. 28, 2014
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
 
 
 
 
Deferred Tax Assets, Operating Loss Carryforwards, Domestic
$ 31,200,000 
 
 
 
Cumulative undistributed earnings of foreign subsidiaries and equity investees
3,700,000,000 
 
 
 
Tax credit carryforward
18,000,000 
 
 
 
Foreign net operating loss carryforwards
262,200,000 
 
 
 
Gross unrecognized tax benefits
196,900,000 
146,500,000 
150,400,000 
112,700,000 
Unrecognized tax benefits affecting the effective tax rate if recognized
139,500,000 
 
 
 
Interest and penalties expense/(benefit) recognized in income tax expense
5,200,000 
3,600,000 
700,000 
 
Accrued interest and penalties
11,200,000 
7,700,000 
 
 
Minimum [Member]
 
 
 
 
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
 
 
 
 
Amount of reasonably possible unrecognized benefit change
$ 42,000,000 
 
 
 
Income Taxes (Components of Earnings Before Income Taxes) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
Income Tax Disclosure [Abstract]
 
 
 
United States
$ 3,393.0 
$ 3,415.7 
$ 2,837.2 
Foreign
924.5 
782.9 
1,065.8 
Earnings before income taxes
$ 4,317.5 
$ 4,198.6 
$ 3,903.0 
Income Taxes (Provision for Income Taxes) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
Income Tax Disclosure [Abstract]
 
 
 
Current taxes: U.S. federal
$ 931.0 
$ 704.1 
$ 801.0 
Current taxes: U.S. state and local
170.8 
166.5 
150.1 
Current taxes: Foreign
216.6 
218.5 
172.2 
Total current taxes
1,318.4 
1,089.1 
1,123.3 
Deferred taxes: U.S. federal
121.2 
351.3 
56.5 
Deferred taxes: U.S. state and local
14.2 
25.8 
4.0 
Deferred taxes: Foreign
(21.2)
(86.5)
(40.1)
Total deferred taxes
114.2 
290.6 
20.4 
Total income tax expense
$ 1,432.6 
$ 1,379.7 
$ 1,143.7 
Income Taxes (Reconciliation of the Statutory U.S. Federal Income Tax Rate With Our Effective Income Tax Rate) (Details)
12 Months Ended
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
Income Tax Disclosure [Abstract]
 
 
 
Statutory rate
35.00% 
35.00% 
35.00% 
State income taxes, net of federal tax benefit
2.80% 
3.00% 
2.80% 
Benefits and taxes related to foreign operations
(2.80%)
(2.20%)
(2.10%)
Domestic production activity deduction
(1.80%)
(1.90%)
(2.20%)
Gain resulting from acquisition of joint venture
0.00% 
0.00% 
(3.70%)
Other, net
0.00% 
(1.00%)
(0.50%)
Effective tax rate
33.20% 
32.90% 
29.30% 
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
Oct. 1, 2017
Oct. 2, 2016
Tax Credit Carryforward [Line Items]
 
 
Tax credit carryforward
$ 18.0 
 
Foreign net operating loss carryforwards
262.2 
 
Property, plant and equipment
71.3 
56.8 
Accrued occupancy costs
118.0 
104.5 
Accrued compensation and related costs
95.0 
88.6 
Stored value card liability
130.7 
124.2 
Stock-based compensation
125.9 
138.3 
Net operating losses
80.8 
79.0 
Litigation charge
792.0 
862.3 
Other
180.8 
197.4 
Total
1,594.5 
1,651.1 
Valuation allowance
(80.1)
(70.3)
Total deferred tax asset, net of valuation allowance
1,514.4 
1,580.8 
Property, plant and equipment
(477.2)
(445.7)
Intangible assets and goodwill
(159.0)
(175.9)
Other
(89.1)
(88.5)
Total
(725.3)
(710.1)
Net deferred tax asset
789.1 
870.7 
Long-term deferred income tax assets
795.4 
885.4 
Long-term deferred income tax liabilities
(6.3)
(14.7)
expirationbeginningfiscal2024 [Member]
 
 
Tax Credit Carryforward [Line Items]
 
 
Tax credit carryforward
16.0 
 
expirationindefinite [Member]
 
 
Tax Credit Carryforward [Line Items]
 
 
Foreign net operating loss carryforwards
$ 207.0 
 
Earnings Per Share (Narrative) (Details) (Stock Options [Member])
12 Months Ended
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
Stock Options [Member]
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
Out-of-the-money stock options
11,400,000 
5,400,000 
0 
Earnings Per Share (Calculation of Net Earnings Per Common Share ("EPS") - Basic and Diluted) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Oct. 1, 2017
Jul. 2, 2017
Apr. 2, 2017
Jan. 1, 2017
Oct. 2, 2016
Jun. 26, 2016
Mar. 27, 2016
Dec. 27, 2015
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
Earnings Per Share [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Net earnings attributable to Starbucks
$ 788.5 
$ 691.6 
$ 652.8 
$ 751.8 
$ 801.0 
$ 754.1 
$ 575.1 
$ 687.6 
$ 2,884.7 
$ 2,817.7 
$ 2,757.4 
Weighted average common shares and common stock units outstanding (for basic calculation)
 
 
 
 
 
 
 
 
1,449.5 
1,471.6 
1,495.9 
Dilutive effect of outstanding common stock options and RSUs
 
 
 
 
 
 
 
 
12.0 
15.1 
17.5 
Weighted average common and common equivalent shares outstanding (for diluted calculation)
 
 
 
 
 
 
 
 
1,461.5 
1,486.7 
1,513.4 
EPS - basic
 
 
 
 
 
 
 
 
$ 1.99 
$ 1.91 
$ 1.84 
EPS - diluted
$ 0.54 
$ 0.47 
$ 0.45 
$ 0.51 
$ 0.54 
$ 0.51 
$ 0.39 
$ 0.46 
$ 1.97 
$ 1.90 
$ 1.82 
Commitments And Contingencies (Narrative) (Details) (USD $)
3 Months Ended
Oct. 1, 2017
East China JV [Member]
 
Other Commitments [Line Items]
 
Preexisting ownership percentage
50.00% 
Payments to Acquire Interest in Joint Venture
$ 1,300,000,000 
Taiwan JV [Member]
 
Other Commitments [Line Items]
 
Preexisting ownership percentage
50.00% 
Proceeds from Divestiture of Interest in Joint Venture
$ 175,000,000 
Segment Reporting (Narrative) (Details)
12 Months Ended
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
Segment Reporting Information [Line Items]
 
 
 
Basis for segment information
Our chief executive officer and executive chairman comprise the Company's Chief Operating Decision Maker function (“CODM”). Segment information is prepared on the same basis that our CODM manages the segments, evaluates financial results, and makes key operating decisions. 
 
 
Number of reportable operating segments
4 
 
 
Disclosure of significant customers
No customer accounts for 10% or more of our revenues 
 
 
Total net revenues [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Percentage of revenue from other countries
100.00% 
100.00% 
100.00% 
Total net revenues [Member] |
Japan Canada China and UK [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Percentage of revenue from other countries
77.00% 
 
 
Operating Segments [Member] |
Americas [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Description of segment products and services
Americas, CAP, and EMEA 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, CAP and EMEA 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, CAP and EMEA 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 and single-serve products, 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, Starbucks Refreshers® beverages, Teavana™ tea beverages and chilled multi-serve beverages. The U.S. foodservice business, which is included in the Channel Development segment, sells coffee and other related products to institutional foodservice companies. 
 
 
Segment Reporting (Consolidated Revenue Mix By Product Type) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Oct. 1, 2017
Jul. 2, 2017
Apr. 2, 2017
Jan. 1, 2017
Oct. 2, 2016
Jun. 26, 2016
Mar. 27, 2016
Dec. 27, 2015
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
Revenue from External Customer [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
$ 5,698.3 
$ 5,661.5 
$ 5,294.0 
$ 5,732.9 
$ 5,711.2 
$ 5,238.0 
$ 4,993.2 
$ 5,373.5 
$ 22,386.8 
$ 21,315.9 
$ 19,162.7 
Beverage Member
 
 
 
 
 
 
 
 
 
 
 
Revenue from External Customer [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
12,915.0 
12,383.4 
11,115.4 
Food Member
 
 
 
 
 
 
 
 
 
 
 
Revenue from External Customer [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
3,832.1 
3,495.0 
3,085.3 
Packaged and Single Serve Coffees and Teas [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenue from External Customer [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
2,883.6 
2,866.0 
2,619.9 
Other Products Member
 
 
 
 
 
 
 
 
 
 
 
Revenue from External Customer [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
$ 2,756.1 1
$ 2,571.5 1
$ 2,342.1 1
Total net revenues [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenue from External Customer [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Percentage of product revenue to total revenue
 
 
 
 
 
 
 
 
100.00% 
100.00% 
100.00% 
Total net revenues [Member] |
Beverage Member
 
 
 
 
 
 
 
 
 
 
 
Revenue from External Customer [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Percentage of product revenue to total revenue
 
 
 
 
 
 
 
 
58.00% 
58.00% 
58.00% 
Total net revenues [Member] |
Food Member
 
 
 
 
 
 
 
 
 
 
 
Revenue from External Customer [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Percentage of product revenue to total revenue
 
 
 
 
 
 
 
 
17.00% 
16.00% 
16.00% 
Total net revenues [Member] |
Packaged and Single Serve Coffees and Teas [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenue from External Customer [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Percentage of product revenue to total revenue
 
 
 
 
 
 
 
 
13.00% 
14.00% 
14.00% 
Total net revenues [Member] |
Other Products Member
 
 
 
 
 
 
 
 
 
 
 
Revenue from External Customer [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Percentage of product revenue to total revenue
 
 
 
 
 
 
 
 
12.00% 1
12.00% 1
12.00% 1
Segment Reporting (Information by Geographic Area) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Oct. 1, 2017
Jul. 2, 2017
Apr. 2, 2017
Jan. 1, 2017
Oct. 2, 2016
Jun. 26, 2016
Mar. 27, 2016
Dec. 27, 2015
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
$ 5,698.3 
$ 5,661.5 
$ 5,294.0 
$ 5,732.9 
$ 5,711.2 
$ 5,238.0 
$ 4,993.2 
$ 5,373.5 
$ 22,386.8 
$ 21,315.9 
$ 19,162.7 
Long-lived assets
9,082.3 
 
 
 
9,554.6 
 
 
 
9,082.3 
9,554.6 
8,435.1 
United States [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
16,527.1 
15,774.8 
14,123.7 
Long-lived assets
5,848.3 
 
 
 
6,012.8 
 
 
 
5,848.3 
6,012.8 
5,795.2 
Other Countries [Member]
 
 
 
 
 
 
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
5,859.7 
5,541.1 
5,039.0 
Long-lived assets
$ 3,234.0 
 
 
 
$ 3,541.8 
 
 
 
$ 3,234.0 
$ 3,541.8 
$ 2,639.9 
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
Oct. 1, 2017
Jul. 2, 2017
Apr. 2, 2017
Jan. 1, 2017
Oct. 2, 2016
Jun. 26, 2016
Mar. 27, 2016
Dec. 27, 2015
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
$ 5,698.3 
$ 5,661.5 
$ 5,294.0 
$ 5,732.9 
$ 5,711.2 
$ 5,238.0 
$ 4,993.2 
$ 5,373.5 
$ 22,386.8 
$ 21,315.9 
$ 19,162.7 
Depreciation and amortization expenses
 
 
 
 
 
 
 
 
1,011.4 
980.8 
893.9 
Income from equity investees
 
 
 
 
 
 
 
 
391.4 
318.2 
249.9 
Operating income
1,022.5 
1,044.2 
935.4 
1,132.6 
1,227.5 
1,022.3 
864.2 
1,058.0 
4,134.7 
4,171.9 
3,601.0 
Total assets
14,365.6 
 
 
 
14,312.5 
 
 
 
14,365.6 
14,312.5 
 
Operating Segments [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
22,386.8 
21,315.9 
19,162.7 
Depreciation and amortization expenses
 
 
 
 
 
 
 
 
860.8 
827.6 
744.0 
Income from equity investees
 
 
 
 
 
 
 
 
391.4 
318.2 
249.9 
Operating income
 
 
 
 
 
 
 
 
5,263.4 
5,294.1 
4,521.1 
Total assets
7,257.8 
 
 
 
7,645.1 
 
 
 
7,257.8 
7,645.1 
7,578.9 
Operating Segments [Member] |
Americas [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
15,652.7 
14,795.4 
13,293.4 
Depreciation and amortization expenses
 
 
 
 
 
 
 
 
615.0 
590.1 
522.3 
Income from equity investees
 
 
 
 
 
 
 
 
0 
0 
0 
Operating income
 
 
 
 
 
 
 
 
3,663.2 
3,742.0 
3,223.3 
Total assets
3,327.2 
 
 
 
3,424.6 
 
 
 
3,327.2 
3,424.6 
2,726.7 
Operating Segments [Member] |
China/Asia Pacific [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
3,240.2 
2,938.8 
2,395.9 
Depreciation and amortization expenses
 
 
 
 
 
 
 
 
202.2 
180.6 
150.7 
Income from equity investees
 
 
 
 
 
 
 
 
197.0 
150.1 
119.6 
Operating income
 
 
 
 
 
 
 
 
765.0 
631.6 
500.5 
Total assets
2,770.9 
 
 
 
2,740.2 
 
 
 
2,770.9 
2,740.2 
2,230.5 
Operating Segments [Member] |
EMEA [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
1,013.7 
1,124.9 
1,216.7 
Depreciation and amortization expenses
 
 
 
 
 
 
 
 
31.3 
40.8 
52.0 
Income from equity investees
 
 
 
 
 
 
 
 
0 
1.5 
3.1 
Operating income
 
 
 
 
 
 
 
 
116.1 
151.6 
168.2 
Total assets
273.8 
 
 
 
552.1 
 
 
 
273.8 
552.1 
749.1 
Operating Segments [Member] |
Channel Development [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
2,008.6 
1,932.5 
1,730.9 
Depreciation and amortization expenses
 
 
 
 
 
 
 
 
2.2 
2.8 
2.7 
Income from equity investees
 
 
 
 
 
 
 
 
194.4 
166.6 
127.2 
Operating income
 
 
 
 
 
 
 
 
893.4 
807.3 
653.9 
Total assets
114.0 
 
 
 
67.1 
 
 
 
114.0 
67.1 
87.3 
Operating Segments [Member] |
All Other Segments [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
 
 
 
 
 
 
 
 
471.6 
524.3 
525.8 
Depreciation and amortization expenses
 
 
 
 
 
 
 
 
10.1 
13.3 
16.3 
Income from equity investees
 
 
 
 
 
 
 
 
0 
0 
0 
Operating income
 
 
 
 
 
 
 
 
(174.3)
(38.4)
(24.8)
Total assets
$ 771.9 
 
 
 
$ 861.1 
 
 
 
$ 771.9 
$ 861.1 
$ 1,785.3 
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
Oct. 1, 2017
Jul. 2, 2017
Apr. 2, 2017
Jan. 1, 2017
Oct. 2, 2016
Jun. 26, 2016
Mar. 27, 2016
Dec. 27, 2015
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Operating income
$ 1,022.5 
$ 1,044.2 
$ 935.4 
$ 1,132.6 
$ 1,227.5 
$ 1,022.3 
$ 864.2 
$ 1,058.0 
$ 4,134.7 
$ 4,171.9 
$ 3,601.0 
Gain resulting from acquisition of joint venture
 
 
 
 
 
 
 
 
0 
0 
390.6 
Loss on extinguishment of debt
 
 
 
 
 
 
 
 
0 
0 
(61.1)
Interest income and other, net
 
 
 
 
 
 
 
 
275.3 
108.0 
43.0 
Interest expense
 
 
 
 
 
 
 
 
(92.5)
(81.3)
(70.5)
Earnings before income taxes
 
 
 
 
 
 
 
 
4,317.5 
4,198.6 
3,903.0 
Operating Segments [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Operating income
 
 
 
 
 
 
 
 
5,263.4 
5,294.1 
4,521.1 
Corporate, Non-Segment [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Operating income
 
 
 
 
 
 
 
 
$ (1,128.7)
$ (1,122.2)
$ (920.1)
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
Oct. 1, 2017
Jul. 2, 2017
Apr. 2, 2017
Jan. 1, 2017
Oct. 2, 2016
Jun. 26, 2016
Mar. 27, 2016
Dec. 27, 2015
Oct. 1, 2017
Oct. 2, 2016
Sep. 27, 2015
Selected Quarterly Financial Information [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Total net revenues
$ 5,698.3 
$ 5,661.5 
$ 5,294.0 
$ 5,732.9 
$ 5,711.2 
$ 5,238.0 
$ 4,993.2 
$ 5,373.5 
$ 22,386.8 
$ 21,315.9 
$ 19,162.7 
Operating income
1,022.5 
1,044.2 
935.4 
1,132.6 
1,227.5 
1,022.3 
864.2 
1,058.0 
4,134.7 
4,171.9 
3,601.0 
Net earnings attributable to Starbucks
$ 788.5 
$ 691.6 
$ 652.8 
$ 751.8 
$ 801.0 
$ 754.1 
$ 575.1 
$ 687.6 
$ 2,884.7 
$ 2,817.7 
$ 2,757.4 
EPS - diluted
$ 0.54 
$ 0.47 
$ 0.45 
$ 0.51 
$ 0.54 
$ 0.51 
$ 0.39 
$ 0.46 
$ 1.97 
$ 1.90 
$ 1.82 
Subsequent Events (Details) (USD $)
12 Months Ended 12 Months Ended 60 Months Ended 3 Months Ended
Oct. 24, 2018
threehundredsixtyfourdaycreditfacility [Member]
Subsequent Event [Member]
Oct. 25, 2017
threehundredsixtyfourdaycreditfacility [Member]
Subsequent Event [Member]
Oct. 1, 2017
Revolving Credit Facility [Member]
Oct. 25, 2022
twothousandeighteencreditfacility [Member]
Subsequent Event [Member]
Oct. 25, 2017
twothousandeighteencreditfacility [Member]
Subsequent Event [Member]
Oct. 1, 2017
Commercial Paper [Member]
Oct. 25, 2017
Commercial Paper [Member]
Subsequent Event [Member]
Dec. 31, 2017
Tazo business [Member]
Subsequent Event [Member]
Subsequent Event [Line Items]
 
 
 
 
 
 
 
 
Unsecured revolving credit facility
 
$ 1,000,000,000 
$ 1,500,000,000 
 
$ 2,000,000,000 
 
 
 
Maturity date of credit facility
Oct. 24, 2018 
 
Nov. 06, 2020 
Oct. 25, 2022 
 
 
 
 
Maximum increase in commitment amount allowable under the credit facility
 
500,000,000 
750,000,000 
 
500,000,000 
 
 
 
Debt Instrument, Borrowing Capacity, Amount
 
 
 
 
 
1,000,000,000 
3,000,000,000 
 
Proceeds from Divestiture of Businesses
 
 
 
 
 
 
 
$ 384,000,000