Starbucks Corp 10-Q for FY2020 Q1

Starbucks Corp (SBUX)

10-Q 2020-01-28 For: 2019-12-29

Added on April 10, 2026

About this 10-Q

Starbucks Corp filed this 10-Q on January 28, 2020, covering the quarter ended December 29, 2019 (FY2020 Q1).

Headline figures

Quarter ended December 29, 2019, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $7.1B; up 7.0% from $6.63B a year earlier
Net income: $885.7M; up 16.4% from net income of $760.6M a year earlier
Diluted EPS: $0.74; up 21.3% from $0.61 a year earlier

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Washington			91-1325671
(State or Other Jurisdiction of Incorporation or Organization)			(IRS Employer Identification No.)


Title	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $0.001 per share	SBUX	NASDAQ Global Select Market


	Quarter Ended
	Dec 29, 2019		Dec 30, 2018
Net revenues:
Company-operated stores	$	5,780.7	$	5,370.3
Licensed stores	792.0		737.1
Other	524.4		525.3
Total net revenues	7,097.1		6,632.7
Cost of sales	2,236.4		2,175.8
Store operating expenses	2,821.5		2,586.8
Other operating expenses	101.8		97.6
Depreciation and amortization expenses	351.0		333.4
General and administrative expenses	434.2		448.0
Restructuring and impairments	6.3		43.2
Total operating expenses	5,951.2		5,684.8
Income from equity investees	73.9		67.8
Operating income	1,219.8		1,015.7


Interest income and other, net	15.9		24.8
Interest expense	(91.9)		(75.0)
Earnings before income taxes	1,143.8		965.5
Income tax expense	258.5		205.1
Net earnings including noncontrolling interests	885.3		760.4
Net earnings/(loss) attributable to noncontrolling interests	(0.4)		(0.2)
Net earnings attributable to Starbucks	$	885.7	$	760.6
Earnings per share - basic	$	0.75	$	0.61
Earnings per share - diluted	$	0.74	$	0.61
Weighted average shares outstanding:
Basic	1,180.4		1,242.0
Diluted	1,191.0		1,253.4


	Quarter Ended
	Dec 29, 2019		Dec 30, 2018
Net earnings including noncontrolling interests	$	885.3	$	760.4
Other comprehensive income/(loss), net of tax:
Unrealized holding gains/(losses) on available-for-sale debt securities	(0.1)		2.2
Tax (expense)/benefit	—		(0.5)
Unrealized gains/(losses) on cash flow hedging instruments	32.4		(9.1)
Tax (expense)/benefit	(6.6)		1.8
Unrealized gains/(losses) on net investment hedging instruments	23.7		(21.9)
Tax (expense)/benefit	(6.0)		5.6
Translation adjustment and other	76.1		1.6
Tax (expense)/benefit	—		—
Reclassification adjustment for net (gains)/losses realized in net earnings for available-for-sale debt securities, hedging instruments, and translation adjustment	(10.7)		8.1
Tax expense/(benefit)	2.3		(0.7)
Other comprehensive income/(loss)	111.1		(12.9)
Comprehensive income including noncontrolling interests	996.4		747.5
Comprehensive income/(loss) attributable to noncontrolling interests	(0.4)		(0.2)
Comprehensive income attributable to Starbucks	$	996.8	$	747.7


	Dec 29, 2019		Sep 29, 2019
ASSETS
Current assets:
Cash and cash equivalents	$	3,040.5	$	2,686.6
Short-term investments	68.4		70.5
Accounts receivable, net	908.1		879.2
Inventories	1,408.7		1,529.4
Prepaid expenses and other current assets	474.0		488.2
Total current assets	5,899.7		5,653.9
Long-term investments	199.8		220.0
Equity investments	411.3		396.0
Property, plant and equipment, net	6,390.9		6,431.7
Operating lease, right-of-use asset	8,358.5		—
Deferred income taxes, net	1,731.4		1,765.8
Other long-term assets	484.7		479.6
Other intangible assets	739.1		781.8
Goodwill	3,515.9		3,490.8
TOTAL ASSETS	$	27,731.3	$	19,219.6
LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)
Current liabilities:
Accounts payable	$	1,085.6	$	1,189.7
Accrued liabilities	1,637.8		1,753.7
Accrued payroll and benefits	578.5		664.6
Income taxes payable	1,414.0		1,291.7
Current portion of operating lease liability	1,268.9		—
Store value card liability and current portion of deferred revenue	1,694.1		1,269.0
Short-term debt	497.9		—
Current portion of long-term debt	498.7		—
Total current liabilities	8,675.5		6,168.7
Long-term debt	10,653.2		11,167.0
Operating lease liability	7,711.7		—
Deferred revenue	6,748.8		6,744.4
Other long-term liabilities	701.2		1,370.5
Total liabilities	34,490.4		25,450.6
Shareholders’ equity/(deficit):
Common stock ($0.001 par value) — authorized, 2,400.0 shares; issued and outstanding, 1,174.5 and 1,184.6 shares, respectively	1.2		1.2
Additional paid-in capital	41.1		41.1
Retained earnings/(deficit)	(6,414.8)		(5,771.2)
Accumulated other comprehensive loss	(387.4)		(503.3)
Total shareholders’ equity/(deficit)	(6,759.9)		(6,232.2)
Noncontrolling interests	0.8		1.2
Total equity/(deficit)	(6,759.1)		(6,231.0)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)	$	27,731.3	$	19,219.6


	Common Stock					Additional Paid-in Capital		Retained Earnings/(Deficit)		Accumulated Other Comprehensive Income/(Loss)		Shareholders’ Equity/(Deficit)		Noncontrolling Interests		Total
	Shares	Amount
Balance, September 29, 2019	1,184.6	$	1.2	$	41.1	$	(5,771.2)	$	(503.3)	$	(6,232.2)	$	1.2	$	(6,231.0)
Cumulative effect of adoption of new accounting guidance	—	—		—		12.5		4.8		17.3		—		17.3
Net earnings/(loss)	—	—		—		885.7		—		885.7		(0.4)		885.3
Other comprehensive income/(loss)	—	—		—		—		111.1		111.1		—		111.1
Stock-based compensation expense	—	—		91.3		—		—		91.3		—		91.3
Exercise of stock options/vesting of RSUs	2.8	—		(54.1)		—		—		(54.1)		—		(54.1)
Sale of common stock	0.1	—		8.9		—		—		8.9		—		8.9
Repurchase of common stock	(13.0)	—		(46.1)		(1,061.8)		—		(1,107.9)		—		(1,107.9)
Cash dividends declared, $0.41 per share	—	—		—		(480.0)		—		(480.0)		—		(480.0)

Balance, December 29, 2019	1,174.5	$	1.2	$	41.1	$	(6,414.8)	$	(387.4)	$	(6,759.9)	$	0.8	$	(6,759.1)

Balance, September 30, 2018	1,309.1	$	1.3	$	41.1	$	1,457.4	$	(330.3)	$	1,169.5	$	6.3	$	1,175.8
Cumulative effect of adoption of new accounting guidance	—	—		—		495.6		—		495.6		—		495.6
Net earnings/(loss)	—	—		—		760.6		—		760.6		(0.2)		760.4
Other comprehensive income/(loss)	—	—		—		—		(12.9)		(12.9)		—		(12.9)
Stock-based compensation expense	—	—		98.0		—		—		98.0		—		98.0
Exercise of stock options/vesting of RSUs	6.0	—		45.0		—		—		45.0		—		45.0
Sale of common stock	0.2	—		8.1		—		—		8.1		—		8.1
Repurchase of common stock	(72.0)	(0.1)		(151.1)		(4,848.8)		—		(5,000.0)		—		(5,000.0)
Cash dividends declared, $0.36 per share	—	—		—		(448.8)		—		(448.8)		—		(448.8)
Balance, December 30, 2018	1,243.3	$	1.2	$	41.1	$	(2,584.0)	$	(343.2)	$	(2,884.9)	$	6.1	$	(2,878.8)


Note 1	Summary of Significant Accounting Policies	9
Note 2	Acquisitions, Divestitures and Strategic Alliance	10
Note 3	Derivative Financial Instruments	10
Note 4	Fair Value Measurements	14
Note 5	Inventories	16
Note 6	Supplemental Balance Sheet Information	16
Note 7	Other Intangible Assets and Goodwill	17
Note 8	Debt	17
Note 9	Leases	19
Note 10	Deferred Revenue	21
Note 11	Equity	21
Note 12	Employee Stock Plans	22

Note 13	Earnings per Share	23
Note 14	Commitments and Contingencies	23
Note 15	Segment Reporting	24
Note 16	S ubsequ ent Event	25


	Net Gains/(Losses) Included in AOCI						Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months	Outstanding Contract/Debt Remaining Maturity (Months)
	Dec 29, 2019		Sep 29, 2019
Cash Flow Hedges:
Interest rates	$	17.8	$	0.5	$	2.5	154
Cross-currency swaps	(0.8)		(1.4)		—		59
Foreign currency - other	8.1		12.9		4.7		36
Coffee	8.6		(1.0)		6.5		24
Dairy	—		—		—		4
Net Investment Hedges:
Foreign currency	16.0		16.0		—		0
Cross-currency swaps	5.6		—		—		117
Foreign currency debt	(13.9)		(26.1)		—		51


	Quarter Ended
	Gains/(Losses) Recognized in OCI Before Reclassifications						Gains/(Losses) Reclassified from AOCI to Earnings						Location of gain/(loss)
	Dec 29, 2019		Dec 30, 2018		Dec 29, 2019		Dec 30, 2018
Cash Flow Hedges:
Interest rates	$	20.0	$	(15.7)	$	0.8	$	1.4		Interest expense
Cross-currency swaps	6.2		(8.0)		(0.2)		(0.4)			Interest expense
									5.6		(11.3)	Interest income and other, net
Foreign currency - other	(4.7)		14.6		1.7		1.4			Licensed stores revenues
									(0.3)		0.5	Cost of sales
Coffee	11.0		—		—		(0.2)			Cost of sales
Dairy	(0.1)		—		—		—
Net Investment Hedges:

Cross-currency swaps	10.7		—		3.3		—			Interest expense
Foreign currency debt	13.0		(21.9)		—		—


		Gains/(Losses) Recognized in Earnings
	Location of gain/(loss) recognized in earnings	Quarter Ended
				Dec 29, 2019			Dec 30, 2018
Non-Designated Derivatives:
Foreign currency - other	Interest income and other, net	$	3.4		$	(7.9)

Dairy	Interest income and other, net	—			(2.1)
Diesel fuel and other commodities	Interest income and other, net	0.9			(6.6)
Fair Value Hedges:
Interest rate swap	Interest expense	(10.9)			16.1
Long-term debt (hedged item)	Interest expense	4.2			(16.9)


	Dec 29, 2019		Sep 29, 2019
Interest rate swap	$	1,500	$	1,500
Cross-currency swaps	1,021		341
Foreign currency - other	1,140		1,125
Coffee	43		52
Dairy	3		1
Diesel fuel and other commodities	15		17


			Derivative Assets
	Balance Sheet Location		Dec 29, 2019			Sep 29, 2019
Designated Derivative Instruments:
Interest rates	Other long-term assets		$	17.5		$	0.1
Cross-currency swaps	Other long-term assets		12.0			0.2
Foreign currency - other	Prepaid expenses and other current assets		8.9			11.4
		Other long-term assets			5.7			7.8
Coffee	Prepaid expenses and other current assets		9.8			—
	Other long-term assets		0.1			—
Interest rate swap	Other long-term assets		7.3			18.2
Non-designated Derivative Instruments:
Foreign currency	Prepaid expenses and other current assets		3.5			1.0

Diesel fuel and other commodities	Prepaid expenses and other current assets		1.0			0.2

			Derivative Liabilities
	Balance Sheet Location		Dec 29, 2019			Sep 29, 2019
Designated Derivative Instruments:
Interest rates	Other long-term liabilities		$	—		$	2.6
Cross-currency swaps	Other long-term liabilities		7.4			9.7
Foreign currency - other	Accrued liabilities		1.7			0.6
		Other long-term liabilities			1.1			0.1
Coffee	Accrued liabilities		—			1.0
		Other long-term liabilities			—			0.1


Non-designated Derivative Instruments:
Foreign currency	Accrued liabilities		1.6			3.0


Diesel fuel and other commodities	Accrued liabilities		0.1			1.1


	Carrying amount of hedged item						Cumulative amount of fair value hedging adjustment included in the carrying amount
	Dec 29, 2019		Sep 29, 2019		Dec 29, 2019		Sep 29, 2019
Location on the balance sheet
Long-term debt	$	757.6	$	761.8	$	7.6	$	11.8


			Fair Value Measurements at Reporting Date Using
	Balance at December 29,2019		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	$	3,040.5	$	3,040.5	$	—	$	—
Short-term investments:
Available-for-sale debt securities

Commercial paper	0.5		—		0.5		—
Corporate debt securities	3.5		—		3.5		—






Total available-for-sale debt securities	4.0		—		4.0		—
Marketable equity securities	64.4		64.4		—		—
Total short-term investments	68.4		64.4		4.0		—
Prepaid expenses and other current assets:
Derivative assets	23.2		9.8		13.4		—
Long-term investments:
Available-for-sale debt securities

Corporate debt securities	91.1		—		91.1		—
Auction rate securities	5.8		—		—		5.8

U.S. government treasury securities	98.6		98.6		—		—
State and local government obligations	3.6		—		3.6		—
Mortgage and other asset-backed securities	0.7		—		0.7		—

Total long-term investments	199.8		98.6		95.4		5.8
Other long-term assets:
Derivative assets	42.6		0.1		42.5		—
Total assets	$	3,374.5	$	3,213.4	$	155.3	$	5.8
Liabilities:
Accrued liabilities:
Derivative liabilities	$	3.4	$	—	$	3.4	$	—
Other long-term liabilities:
Derivative liabilities	8.5		—		8.5		—
Total liabilities	$	11.9	$	—	$	11.9	$	—


			Fair Value Measurements at Reporting Date Using
	Balance at September 29, 2019		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	$	2,686.6	$	2,686.6	$	—	$	—
Short-term investments:
Available-for-sale debt securities
Commercial paper	0.5		—		0.5		—
Corporate debt securities	3.5		—		3.5		—

Total available-for-sale debt securities	4.0		—		4.0		—
Marketable equity securities	66.5		66.5		—		—
Total short-term investments	70.5		66.5		4.0		—
Prepaid expenses and other current assets:
Derivative assets	12.6		—		12.6		—
Long-term investments:
Available-for-sale debt securities

Corporate debt securities	101.2		—		101.2		—
Auction rate securities	5.8		—		—		5.8

U.S. government treasury securities	106.5		106.5		—		—
State and local government obligations	4.9		—		4.9		—
Mortgage and other asset-backed	1.6		—		1.6		—

Total long-term investments	220.0		106.5		107.7		5.8
Other long-term assets:
Derivative assets	26.3		—		26.3		—
Total assets	$	3,016.0	$	2,859.6	$	150.6	$	5.8
Liabilities:
Accrued liabilities:
Derivative liabilities	$	5.7	$	1.1	$	4.6	$	—
Other long-term liabilities:
Derivative liabilities	12.5		—		12.5		—
Total liabilities	$	18.2	$	1.1	$	17.1	$	—


Shares Outstanding as of January 22, 2020
1,173.7 million


	Quarter Ended
	Dec 29, 2019		Dec 30, 2018
OPERATING ACTIVITIES:
Net earnings including noncontrolling interests	$	885.3	$	760.4
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	369.2		350.8
Deferred income taxes, net	10.4		(354.6)
Income earned from equity method investees	(62.9)		(55.0)
Distributions received from equity method investees	64.3		63.7


Stock-based compensation	90.3		97.3
Non-cash lease costs	294.9		—
Other	5.1		6.1
Cash provided by changes in operating assets and liabilities:
Accounts receivable	(22.9)		(28.8)
Inventories	122.8		44.8
Prepaid expenses and other current assets	(28.5)		847.3
Income taxes payable	125.1		489.3
Accounts payable	(110.3)		(21.3)
Deferred revenue	426.7		362.7
Operating lease liability	(301.6)		—
Other operating assets and liabilities	(31.8)		(183.7)
Net cash provided by operating activities	1,836.1		2,379.0
INVESTING ACTIVITIES:
Purchases of investments	(38.0)		(108.7)
Sales of investments	64.6		32.1
Maturities and calls of investments	1.3		14.2

Additions to property, plant and equipment	(394.3)		(431.4)


Other	(19.9)		(16.6)
Net cash used in investing activities	(386.3)		(510.4)
FINANCING ACTIVITIES:
Net proceeds from issuance of commercial paper	398.9		—
Proceeds from issuance of commercial paper (maturities longer than 90 days)	99.0		—

Repayments of long-term debt	—		(350.0)


	Dec 29, 2019		Sep 29, 2019
Coffee:
Unroasted	$	609.3	$	656.5
Roasted	253.7		276.5
Other merchandise held for sale	269.1		288.0
Packaging and other supplies	276.6		308.4
Total	$	1,408.7	$	1,529.4


	Dec 29, 2019		Sep 29, 2019
Land	$	46.8	$	46.8
Buildings	569.7		691.5
Leasehold improvements	8,121.7		7,948.6
Store equipment	2,722.8		2,659.5
Roasting equipment	783.9		769.6
Furniture, fixtures and other	1,818.8		1,799.0
Work in progress	360.3		358.5
Property, plant and equipment, gross	14,424.0		14,273.5
Accumulated depreciation	(8,033.1)		(7,841.8)
Property, plant and equipment, net	$	6,390.9	$	6,431.7


	Dec 29, 2019		Sep 29, 2019
Income tax receivable	$	141.0	$	141.1
Other prepaid expenses and current assets	333.0		347.1
Total prepaid expenses and current assets	$	474.0	$	488.2


	Dec 29, 2019		Sep 29, 2019
Accrued occupancy costs	$	74.3	$	176.9
Accrued dividends payable	482.4		485.7
Accrued capital and other operating expenditures	684.8		703.9
Self insurance reserves	218.0		210.5
Accrued business taxes	178.3		176.7
Total accrued liabilities	$	1,637.8	$	1,753.7


(in millions)	Dec 29, 2019		Sep 29, 2019
Trade names, trademarks and patents	$	206.5	$	203.4


Fiscal Year Ending	Total
2020 (excluding the quarter ended December 29, 2019)	$	162.6
2021	197.0
2022	163.3
2023	2.7
2024	2.1
Thereafter	4.9
Total estimated future amortization expense	$	532.6


	Americas		International		Channel Development		Corporate and Other		Total
Goodwill balance at September 29, 2019	$	496.7	$	2,958.4	$	34.7	$	1.0	$	3,490.8


Other⁽¹⁾	0.3		24.8		—		—		25.1
Goodwill balance at December 29, 2019	$	497.0	$	2,983.2	$	34.7	$	1.0	$	3,515.9


	Dec 29, 2019						Sep 29, 2019						Stated Interest Rate	Effective Interest Rate⁽¹⁾
Issuance	Amount		Estimated Fair Value		Amount		Estimated Fair Value
November 2020 notes	$	500.0	$	501	$	500.0	$	501	2.200	%	2.228	%
February 2021 notes	500.0		501		500.0		500		2.100	%	2.293	%
February 2021 notes	250.0		251		250.0		250		2.100	%	1.600	%
June 2022 notes	500.0		510		500.0		509		2.700	%	2.819	%
February 2023 notes	1,000.0		1,033		1,000.0		1,033		3.100	%	3.107	%
October 2023 notes⁽²⁾	750.0		797		750.0		798		3.850	%	2.859	%
March 2024 notes⁽³⁾	775.3		786		788.3		795		0.372	%	0.462	%
August 2025 notes	1,250.0		1,350		1,250.0		1,351		3.800	%	3.721	%
June 2026 notes	500.0		504		500.0		502		2.450	%	2.511	%
February 2028 notes	600.0		644		600.0		644		3.500	%	3.529	%
November 2028 notes	750.0		835		750.0		837		4.000	%	3.958	%
May 2029 notes	1,000.0		1,086		1,000.0		1,080		3.550	%	3.871	%
June 2045 notes	350.0		393		350.0		390		4.300	%	4.348	%
December 2047 notes	500.0		520		500.0		518		3.750	%	3.765	%
November 2048 notes	1,000.0		1,175		1,000.0		1,160		4.500	%	4.504	%
May 2049 notes	1,000.0		1,165		1,000.0		1,165		4.450	%	4.433	%
Total	11,225.3		12,051		11,238.3		12,033
Aggregate debt issuance costs and unamortized premium/(discount), net	(81.0)				(83.1)
Hedge accounting fair value adjustment⁽²⁾	7.6				11.8
Total	$	11,151.9			$	11,167.0


Fiscal Year	Total

2020	$	—
2021	1,250.0
2022	500.0
2023	1,000.0
2024	1,525.3
Thereafter	6,950.0
Total	$	11,225.3


	Quarter Ended
	Dec 29, 2019
Operating lease costs⁽¹⁾	$	373.1




Variable lease costs	228.8
Short-term lease costs	8.3
Total lease costs	$	610.2


	Quarter Ended
	Dec 29, 2019
Cash paid related to operating lease liabilities	$	368.9
Operating lease liabilities arising from obtaining ROU assets⁽¹⁾	226.4

	Dec 29, 2019
Weighted-average remaining operating lease term	9.0 years
Weighted-average operating lease discount rate	2.5		%


Fiscal Year Ending	Dec 29, 2019
2020 excluding the quarter ended December 29, 2019)	$	1,099.2
2021	1,393.3
2022	1,285.7
2023	1,155.5
2024	1,023.4
Thereafter	4,151.1
Total lease payments	10,108.2
Less imputed interest	(1,127.6)
Total	$	8,980.6


Fiscal Year Ending	Operating Leases		Lease Financing Arrangements
2020	$	1,432.9	$	5.2
2021	1,342.2		5.2
2022	1,247.4		5.0
2023	1,124.3		5.0
2024	996.4		4.9
Thereafter	4,087.7		42.6
Total minimum lease payments	$	10,230.9	$	67.9


	Total
Stored value cards and loyalty program at September 29, 2019	$	1,113.7
Revenue deferred - card activations, card reloads and Stars earned	3,507.5
Revenue recognized - card and Stars redemptions and breakage	(3,061.9)
Other⁽¹⁾	1.7
Stored value cards and loyalty program at December 29, 2019(2)	$	1,561.0


Quarter Ended	Available-for-Sale Debt Securities		Cash Flow Hedges		Net Investment Hedges		Translation Adjustment and Other		Total
December 29, 2019
Net gains/(losses) in AOCI, beginning of period	$	3.9	$	11.0	$	(10.1)	$	(508.1)	$	(503.3)
Net gains/(losses) recognized in OCI before reclassifications	(0.1)		25.8		17.7		76.1		119.5
Net (gains)/losses reclassified from AOCI to earnings	0.1		(6.1)		(2.4)		—		(8.4)
Other comprehensive income/(loss) attributable to Starbucks	—		19.7		15.3		76.1		111.1

Cumulative effect of accounting adoption	(0.7)		3.0		2.5		—		4.8
Net gains/(losses) in AOCI, end of period	$	3.2	$	33.7	$	7.7	$	(432.0)	$	(387.4)

December 30, 2018
Net gains/(losses) in AOCI, beginning of period	$	(4.9)	$	17.7	$	19.6	$	(362.7)	$	(330.3)
Net gains/(losses) recognized in OCI before reclassifications	1.7		(7.3)		(16.3)		1.6		(20.3)
Net (gains)/losses reclassified from AOCI to earnings	0.3		7.1		—		—		7.4
Other comprehensive income/(loss) attributable to Starbucks	2.0		(0.2)		(16.3)		1.6		(12.9)

Net gains/(losses) in AOCI, end of period	$	(2.9)	$	17.5	$	3.3	$	(361.1)	$	(343.2)


Quarter Ended
AOCI Components	Amounts Reclassified from AOCI							Affected Line Item in the Statements of Earnings
			Dec 29, 2019			Dec 30, 2018
Gains/(losses) on available-for-sale debt securities	$	(0.2)		$	0.5		Interest income and other, net
Gains/(losses) on cash flow hedges	7.6			(8.6)			Please refer to Note 3, Derivative Financial Instruments for additional information.




Gains/(losses) on net investment hedges	3.3			—			Interest income and other, net






	10.7			(8.1)			Total before tax
	(2.3)			0.7			Tax (expense)/benefit
	$	8.4		$	(7.4)		Net of tax


	Stock Options		RSUs
Options outstanding/Nonvested RSUs, September 29, 2019	15.2		8.9
Granted	—		3.5
Options exercised/RSUs vested	(0.8)		(2.9)
Forfeited/expired	—		(0.3)
Options outstanding/Nonvested RSUs, December 29, 2019	14.4		9.2
Total unrecognized stock-based compensation expense, net of estimated forfeitures, as of December 29, 2019	$	3.3	$	294.9


	Quarter Ended Dec 29, 2019
	Sales Growth	Change in Transactions	Change in Ticket
Consolidated	5%	2%	3%
Americas	6%	2%	3%
International	1%	(1)%	2%


	Net stores opened/(closed) and transferred during the period
	Quarter Ended			Stores open as of
	Dec 29, 2019	Dec 30, 2018	Dec 29, 2019	Dec 30, 2018
Americas
Company-operated stores	46	87	10,020	9,777
Licensed stores	90	106	8,183	7,876
Total Americas	136	193	18,203	17,653
International
Company-operated stores	199	188	6,059	5,839
Licensed stores	204	172	7,533	6,373
Total International	403	360	13,592	12,212
Corporate and Other

Licensed stores	—	(12)	—	—
Total Corporate and Other	—	(12)	—	—
Total Company	539	541	31,795	29,865


	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs⁽²⁾	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs⁽³⁾
Period⁽¹⁾
September 30, 2019 - October 27, 2019	2,316,535	$	85.82	2,316,535	26,849,464
October 28, 2019 - November 24, 2019	4,552,866	83.08		4,552,866	22,296,598
November 25, 2019 - December 29, 2019	6,130,000	86.60		6,130,000	16,166,598
Total	12,999,401	$	85.23	12,999,401


		Incorporated by Reference
Exhibit No.	Exhibit Description	Form	File No.	Date of Filing	Exhibit Number	Filed Herewith
3.1	Restated Articles of Incorporation of Starbucks Corporation	10-Q	0-20322	04/28/2015	3.1
3.2	Amended and Restated Bylaws of Starbucks Corporation (As amended and restated through June 1, 2018)	8-K	0-20322	06/05/2018	3.1
10.1	Executive Long-Term Incentive Agreement dated December 9, 2019 between Starbucks Corporation and Kevin R. Johnson	—	—	—	—	X
10.2	Executive Long-Term Incentive Agreement dated December 9, 2019 by and between Starbucks Corporation and Rosalind G. Brewer	—	—	—	—	X
31.1	Certification of Principal Executive Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	—	—	—	—	X
31.2	Certification of Principal Financial Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	—	—	—	—	X
32*	Certifications of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	—	—	—	—	—
101	The following financial statements from the Company's 10-Q for the fiscal quarter ended December 29, 2019, formatted in iXBRL: (i) Consolidated Statements of Earnings, (ii) Consolidated Statements of Comprehensive Income, (iii) Consolidated Balance Sheets, (iv) Consolidated Statements of Cash Flows, (v) Consolidated Statements of Equity and (vi) Notes to Consolidated Financial Statements	—	—	—	—	X
104	Cover Page Interactive Data File (formatted in iXBRL and contained in Exhibit 101)	—	—	—	—	X


Date: December 9, 2019			STARBUCKS CORPORATION /s/ Patrick Grismer Patrick Grismer executive vice president and chief financial officer
Date: December 9, 2019			/s/ Kevin R. Johnson Kevin R. Johnson