STARBUCKS CORP (SBUX) SEC Filing 10-K Annual report for the fiscal year ending Sunday, October 1, 2017

PDFPDF Microsoft WordWord Microsoft ExcelExcel SubscribeRSS E-mailEmail Smartphone and TabletMobile last10k.com/sec-filings/sbux/0000829224-17-000049.htm


Exhibit 99.1

Starbucks Reports Q4 and Full Year Fiscal 2017 Results
Q4 GAAP Earnings Per Share of $0.54; Non-GAAP Earnings Per Share Increases to $0.55
Q4 Global and U.S. Comps Up 2%, Up 3% adjusted for Hurricane Impact; China Up 8%; Global Traffic Up 1%
Board Approves 20% Increase in Quarterly Dividend, to $0.30 Per Share
Company Commits to Returning $15 Billion to Shareholders Over Next 3 Years; Updates Long Term Financial Targets

SEATTLE; November 2, 2017 – Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its 13-week fiscal fourth quarter and 52-week fiscal year ended October 1, 2017. Note that fiscal 2016 contained an extra week in the fourth quarter, resulting in incremental revenue and income in the comparable periods, which had 14- and 53-weeks, respectively. Further, GAAP results in fiscal 2017 include items related to strategic actions the company is taking as it focuses on accelerating growth in high-returning businesses and streamlining its operations. These items include restructuring and impairment charges, transaction and integration costs, gains related to changes in ownership of international markets, and other items, which are excluded from non-GAAP results. A reconciliation of non-GAAP measures with their corresponding GAAP measures is available at the end of this release.

The company will hold a conference call, hosted by Kevin Johnson, president and ceo, and Scott Maw, cfo, today at 2:00 p.m. Pacific Time, in order to provide further commentary around Starbucks non-GAAP business results. The call will be webcast and can be accessed at http://investor.starbucks.com.

Q4 Fiscal 2017 Highlights
Global comparable store sales increased 2%, driven by a 2% increase in average ticket and a 1% increase in transactions; up 3% excluding the impact from Hurricanes Harvey and Irma
Americas comp store sales increased 3%, driven by a 2% increase in average ticket and a 1% increase in transactions
U.S. comp store sales increased 2%; excluding the impact from Hurricanes Harvey and Irma, U.S. comp sales up 3%, driven by a 1% increase in transactions
CAP comp store sales increased 2%; China comp store sales increased 8%, driven by a 7% increase in transactions
Consolidated net revenues of $5.7 billion versus $5.7 billion in the prior year quarter. Excluding $412.4 million for the extra week in Q4 FY16, consolidated net revenues grew 8%
GAAP operating income of $1.0 billion declined 16.7% compared to the prior year quarter. Non-GAAP operating income grew 2.8% to $1.1 billion
GAAP operating margin of 17.9% declined 360 basis points compared to the prior year quarter. Non-GAAP operating margin of 20.0% declined 90 basis points primarily due to increased investments in our store partners
GAAP Earnings Per Share of $0.54 was flat to the prior year quarter. Non-GAAP EPS grew 10.0% to $0.55 per share
The company opened 603 net new stores globally, bringing total store count to 27,339 across 75 countries
Membership in Starbucks Rewards grew 11% year-over-year to 13.3 million active members in the U.S., with member spend representing 36% of U.S. company-operated sales
Mobile Order and Pay reached 10% of transactions in U.S. company-operated stores

Fiscal Year 2017 Highlights
Global comparable store sales increased 3%, comprised of a 3% increase in the Americas segment and a 3% increase in the CAP segment
U.S. comp store sales increased 3%; China comp store sales increased 7%, driven by a 5% increase in transactions
Consolidated net revenues of $22.4 billion grew 5% versus the prior year. Excluding $412.4 million for the extra week in Q4 FY16, consolidated net revenues grew 7% year over year
GAAP operating income of $4.1 billion declined 0.9% compared to the prior year. Non-GAAP operating income grew 7.8% to $4.4 billion

- more -

The following information was filed by STARBUCKS CORP on Thursday, November 2, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

Sentiment Analysis off   on

Filter by Sentiment:
Filter by Category:

View our Sentiment Analysis Tour
Filter by Subcategory:
Click a sentiment analysis snippet below from STARBUCKS CORP's Management Discussions to find these positive and negative remarks within their 10-K Annual report:
  • sbux_10k_2017-11-17_16_33
    Financial - Earnings
    Operating margin declined 200 basis points to 11.5% primarily due to a partial impairment of goodwill related to our Switzerland retail business, sales deleverage in certain company-operated stores and unfavorable foreign currency exchange.
  • sbux_10k_2017-11-17_53_65
    Other - Other
    The increase in the effective tax rate was primarily due to unfavorability from non-deductible goodwill impairment charges recorded in the third quarter of fiscal 2017 approximately 70 basis points, and the lapping of the release of certain tax reserves in the third quarter of fiscal 2016, primarily related to statute closures approximately 30 basis points.
  • sbux_10k_2017-11-17_183_171
    Financial - Debt
    We expect to use our available cash and investments, including, but not limited to, additional potential future borrowings under the credit facilities, commercial paper program and the issuance of debt, to invest in our core businesses, including capital expenditures, new product innovations, related marketing support and partner and digital investments, return cash to shareholders through common stock cash dividend payments and share repurchases, as well as other new business opportunities related to our core and developing businesses such as Siren Retail.
  • sbux_10k_2017-11-17_8_12
    Financial - Earnings
    Earnings per share EPS for fiscal 2017 increased to $1.97, compared to EPS of $1.90 in fiscal 2016, which benefited $0.06 per share from the extra week in fiscal 2016.
  • sbux_10k_2017-11-17_179_162
    Financial - Dividend
    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.
  • sbux_10k_2017-11-17_16_31
    Revenue - Product
    As a result of this strategy, EMEA revenues declined $111 million to $1.0 billion, or 10%, primarily driven by the absence of revenue related to the sale of our Germany retail operations in the third quarter of fiscal 2016 and unfavorable foreign currency translation.
  • sbux_10k_2017-11-17_156_130
    Revenue - Product
    The decrease was primarily due to a decline in company-operated store revenues $179 million, which was largely due to the shift to more licensed stores in the region $132 million and includes the absence of revenues related to the sale of our Germany retail operations, and unfavorable foreign currency translation $69 million.
  • sbux_10k_2017-11-17_169_407
    Financial - Earnings
    The combination of these changes contributed to an overall increase in operating margin of 400 basis points over fiscal 2015.
  • sbux_10k_2017-11-17_51_63
    Financial - Income
    Also contributing favorably was higher income recognized on unredeemed stored value card balances $44 million.
  • sbux_10k_2017-11-17_105_105
    Revenue - Product
    Licensed store revenue growth contributed $292 million to the increase in total net revenues, primarily resulting from higher product sales to and royalty revenues from our licensees $285 million, largely due to the opening of 1,372 net new Starbucks licensed stores, the transfer of 200 company-operated stores to licensed stores over the past 12 months and improved comparable store sales, as well as the impact of the extra week in fiscal 2016 $41 million.
  • sbux_10k_2017-11-17_15_27
    Financial - Income
    Operating income grew 21% to $765 million, while operating margin expanded 210 basis points to 23.6%.
  • sbux_10k_2017-11-17_162_401
    Financial - Income
    Income from equity investees as a percentage of total net revenues decreased 20 basis points as a result of the sale of our ownership interest in our Spanish joint venture, Starbucks Coffee Espan a, S.L., in the first quarter of fiscal 2016 approximately 20 basis points.
  • sbux_10k_2017-11-17_192_198
    Financial - Debt
    The change was primarily due to lower proceeds from the issuance of long-term debt, the repayment of the 2016 notes and an increase in cash returned to shareholders through dividend payments and share repurchases.
  • sbux_10k_2017-11-17_100_356
    Financial - Earnings
    The combination of these changes contributed to an overall increase in operating margin of 270 basis points in fiscal 2017 when compared to fiscal 2016.
  • sbux_10k_2017-11-17_247_292
    Other - Other
    Although we believe that the judgments and estimates discussed herein are reasonable, actual results could differ, and we may be exposed to losses or gains that could be material.
  • sbux_10k_2017-11-17_126_376
    Financial - Income
    Interest income and other, net increased $65 million, primarily due to higher income recognized on unredeemed stored value card balances $21 million, net favorable foreign exchange fluctuations $11 million and gains on our trading securities portfolio $8 million.
  • sbux_10k_2017-11-17_161_400
    Financial - Expense
    Depreciation and amortization expenses as a percentage of total net revenues decreased 70 basis points, primarily due to the shift in the composition of our store portfolio in the region to more licensed stores approximately 40 basis points.
  • sbux_10k_2017-11-17_89_349
    Financial - Expense
    Depreciation and amortization expenses as a percentage of total net revenues decreased 50 basis points, primarily due to the shift in portfolio towards more licensed stores approximately 50 basis points.
  • sbux_10k_2017-11-17_72_71
    Revenue - Geography
    ChinaAsia Pacific total net revenues for fiscal 2017 increased $301 million, or 10%, over fiscal 2016, primarily from higher company-operated store revenues $266 million, driven by incremental revenues from 392 net new company-operated store openings over the past 12 months $293 million.
  • sbux_10k_2017-11-17_152_395
    Financial - Earnings
    The combination of these changes resulted in an overall increase in operating margin of 60 basis points over fiscal 2015.
  • sbux_10k_2017-11-17_139_385
    Financial - Earnings
    The combination of these changes resulted in an overall increase in operating margin of 110 basis points over fiscal 2015.
  • sbux_10k_2017-11-17_116_367
    Financial - Earnings
    The combination of these changes resulted in an overall increase in operating margin of 80 basis points over fiscal 2015.
  • sbux_10k_2017-11-17_104_103
    Revenue - Product
    The growth in company-operated store revenues was primarily driven by 5% growth in comparable store sales $793 million, incremental revenues from 693 net new Starbucks company-operated store openings over the past 12 months $724 million, the impact of the extra week in fiscal 2016 $324 million and incremental revenues from the impact of our ownership change in Starbucks Japan $105 million.
  • sbux_10k_2017-11-17_42_60
    Financial - Expense
    We recorded $130 million of restructuring related costs, including a partial goodwill impairment of $69 million, store asset impairments, and costs related to early store closure obligations and severance.
  • sbux_10k_2017-11-17_83_82
    Revenue - Geography
    Also contributing to the decline was unfavorable foreign currency translation $43 million and the absence of the 53rd week $11 million.
  • sbux_10k_2017-11-17_185_181
    Financial - Expense
    We have borrowed funds and continue to believe we have the ability to do so at reasonable interest rates however, additional borrowings would result in increased interest expense in the future.
  • sbux_10k_2017-11-17_79_343
    Financial - Earnings
    The combination of these changes resulted in an overall increase in operating margin of 210 basis points in fiscal 2017 when compared to fiscal 2016.
  • sbux_10k_2017-11-17_99_355
    Financial - Income
    Income from equity investees increased $28 million for fiscal 2017, due to higher income from our North American Coffee Partnership joint venture, driven by increased sales of Frappuccino
  • sbux_10k_2017-11-17_244_284
    Financial - Income
    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.
  • sbux_10k_2017-11-17_4_295
    Revenue - Product
    Global comparable store sales grew 3% driven by a 3% increase in average ticket.
  • sbux_10k_2017-11-17_134_116
    Revenue - Product
    The increase in company-operated store revenues was driven by a 6% increase in comparable store sales $730 million, incremental revenues from 348 net new Starbucks company-operated store openings over the past 12 months $481 million and the impact of the extra week in fiscal 2016 $258 million.
  • sbux_10k_2017-11-17_135_383
    Revenue - Product
    The increase in licensed store revenues was primarily due to higher product sales to and royalty revenues from our licensees $150 million, resulting from the opening of 456 net new licensed stores over the past 12 months and improved comparable store sales, as well as the impact of the extra week in fiscal 2016 $31 million.
  • sbux_10k_2017-11-17_85_347
    Financial - Expense
    Cost of sales including occupancy costs as a percentage of total net revenues increased 240 basis points, primarily due to unfavorable foreign currency transactions approximately 140 basis points and the shift in the composition of our store portfolio to more licensed stores, which have a lower gross margin approximately 100 basis points.
  • sbux_10k_2017-11-17_168_406
    Financial - Income
    Income from equity investees as a percentage of total revenues increased 130 basis points, driven by higher income from our North American Coffee Partnership joint venture, primarily due to increased sales volume of Starbucks Doubleshot
  • sbux_10k_2017-11-17_96_352
    Financial - Expense
    Cost of sales as a percentage of total net revenues decreased 50 basis points, primarily driven by lower coffee costs approximately 90 basis points and leverage on cost of sales approximately 60 basis points, partially offset by a shift toward lower margin products approximately 100 basis points and the revenue deduction adjustment pertaining to prior periods approximately 30 basis points.
  • sbux_10k_2017-11-17_106_359
    Revenue - Geography
    increases was the impact of unfavorable foreign currency translation $33 million and a decrease in licensed store revenues resulting from the impact of our ownership change in Starbucks Japan $6 million.
  • sbux_10k_2017-11-17_33_310
    Revenue - Product
    Licensed store revenue growth also contributed to the increase in total net revenue $201 million, primarily due to increased product sales to and royalty revenues from our licensees $260 million, largely due to the opening of 1,552 net new Starbucks
  • sbux_10k_2017-11-17_32_50
    Revenue - Product
    The growth in company-operated store revenues was primarily driven by incremental revenues from 768 net new Starbucks
  • sbux_10k_2017-11-17_14_22
    Revenue - Geography
    Americas revenue grew by 6% to $15.7 billion, primarily driven by incremental revenues from 952 net new store openings over the last 12 months and comparable store sales growth of 3%, partially offset by the absence of the 53rd week.
  • sbux_10k_2017-11-17_59_329
    Revenue - Product
    The increase in company-operated store revenues was driven by incremental revenues from 383 net new Starbucks
  • sbux_10k_2017-11-17_84_83
    Revenue - Product
    Licensed store revenues increased $68 million, driven by higher product sales to and royalty revenues from our licensees $95 million, resulting from the opening of 339 net new licensed stores and the transfer of 14 company-operated stores to licensed stores over the past 12 months.
  • sbux_10k_2017-11-17_51_62
    Financial - Income
    Interest income and other, net increased $167 million, primarily driven by gains from the sale of our Singapore retail operations $84 million and our investment in Square, Inc. warrants $41 million.
  • sbux_10k_2017-11-17_17_35
    Revenue - Product
    Channel Development segment revenues grew by 4% to $2.0 billion, primarily driven by increased sales through our international channels and sales of packaged coffee, foodservice and single-serve products.
  • sbux_10k_2017-11-17_165_140
    Revenue - Product
    Channel Development total net revenues for fiscal 2016 increased $202 million, or 12%, over the prior year, primarily driven by higher sales of premium single-serve products $101 million.
  • sbux_10k_2017-11-17_150_393
    Financial - Income
    Income from equity investees as a percentage of total net revenues increased 10 basis points, primarily due to higher income from our joint venture operations, primarily in China and South Korea approximately 70 basis points and 60 basis points,
  • sbux_10k_2017-11-17_26_47
    Revenue - Product
    We expect revenue growth to be in the high single digits for the underlying business in fiscal 2018 driven by comparable store sales and the opening of approximately 2,300 net new Starbucks stores globally.
  • sbux_10k_2017-11-17_127_377
    Financial - Expense
    Interest expense increased $11 million primarily due to interest on the long-term debt we issued in February and May 2016.
  • sbux_10k_2017-11-17_165_141
    Revenue - Product
    The impact of the extra week in fiscal 2016 $40 million, increased foodservice sales $33 million and U.S. packaged coffee sales $28 million also contributed.
  • sbux_10k_2017-11-17_32_49
    Revenue - Product
    Total net revenues increased $1.1 billion, or 5%, over fiscal 2016, primarily driven by increased revenues from company-operated stores $807 million.
  • sbux_10k_2017-11-17_144_123
    Revenue - Product
    The increase in company-operated store revenues was primarily due to the opening of 359 net new company-operated stores over the past 12 months $246 million and incremental revenues from the impact of our ownership in Starbucks Japan $105 million.
  • sbux_10k_2017-11-17_115_366
    Financial - Income
    Income from equity investees as a percentage of total net revenues increased 20 basis points due to higher income from our joint venture operations, primarily from our North American Coffee Partnership and our joint ventures in China and South Korea.
  • sbux_10k_2017-11-17_14_24
    Financial - Income
    Operating income declined $79 million to $3.7 billion and operating margin at 23.4% declined by 190 basis points from a year ago, primarily due to increased investments in our store partners, a product mix shift largely towards food, and the absence of the 53rd week.
  • sbux_10k_2017-11-17_26_48
    Revenue - Product
    An additional 2 to 3 points of revenue growth is expected related to the aforementioned strategic initiatives.
  • sbux_10k_2017-11-17_15_28
    Financial - Earnings
    The overall margin expansion was primarily due to the transition to Chinas new value added tax structure in fiscal 2016 and higher income from our joint venture operations.
  • sbux_10k_2017-11-17_136_384
    Financial - Expense
    Cost of sales including occupancy costs as a percentage of total net revenues decreased 80 basis points, primarily driven by leverage on cost of sales and occupancy costs approximately 50 basis points and lower commodity costs approximately 40 basis points.
  • sbux_10k_2017-11-17_111_364
    Financial - Expense
    Cost of sales including occupancy costs as a percentage of total net revenues decreased 70 basis points, primarily driven by leverage on cost of sales and occupancy costs approximately 70 basis points and lower commodity costs approximately 50 basis points.
  • sbux_10k_2017-11-17_234_258
    Financial - Cash Flow
    However, as we periodically reassess estimated future cash flows and asset fair values, changes in our estimates and assumptions may cause us to realize material impairment charges in the future.
  • sbux_10k_2017-11-17_12_17
    Revenue - Product
    Consolidated total net revenues increased 5% to $22.4 billion, primarily driven by incremental revenues from 2,320 net new store openings over the past 12 months and a 3% growth in global comparable store sales, partially offset by the absence of the 53rd week.
  • sbux_10k_2017-11-17_186_183
    Revenue - Geography
    We have not, nor do we anticipate the need to, repatriate funds to the U.S. to satisfy domestic liquidity needs however, in the event that we need to repatriate all or a portion of our foreign cash to the U.S., we would be subject to additional U.S. income taxes, which could be material.
  • sbux_10k_2017-11-17_78_79
    Revenue - Geography
    East China also benefited from the new value added tax structure.
  • sbux_10k_2017-11-17_95_97
    Revenue - Product
    CPG revenue growth was driven by increased sales through our international channels, primarily associated with our European and North American regions $35 million, U.S. packaged coffee $32 million and premium single-serve products $23 million.
  • sbux_10k_2017-11-17_144_124
    Revenue - Product
    Also contributing was a 3% increase in comparable store sales $61 million, the impact of the extra week in fiscal 2016 $52 million and favorable foreign currency translation $49 million.
  • sbux_10k_2017-11-17_104_104
    Revenue - Product
    Partially offsetting these increases was the absence of revenue from the conversion of certain company-operated stores to licensed stores $151 million and the impact of unfavorable foreign currency translation $99 million.
  • sbux_10k_2017-11-17_61_331
    Revenue - Product
    The increase in licensed store revenues was primarily driven by increased product sales to and royalty revenues from our licensees $127 million, primarily resulting from the opening of 569 net new Starbucks
  • sbux_10k_2017-11-17_180_166
    Other - Other
    We will use the net proceeds from the offering to enhance our sustainability programs around coffee supply chain management through eligible sustainability projects.
  • sbux_10k_2017-11-17_215_229
    Other - Other
    Trading securities are recorded at fair value and approximates a portion of our liability under our Management Deferred Compensation Plan MDCP .
  • sbux_10k_2017-11-17_95_96
    Revenue - Product
    Channel Development total net revenues for fiscal 2017 increased $76 million, or 4%, over fiscal 2016.
  • sbux_10k_2017-11-17_78_77
    Financial - Income
    Income from equity investees increased $47 million, driven by higher income from our joint venture operations, primarily in East China and South Korea.
  • sbux_10k_2017-11-17_157_132
    Revenue - Product
    Licensed store revenues increased $82 million, or 32%, primarily due to higher product sales to and royalty revenues from our licensees $89 million, resulting from the opening of 294 net new licensed stores and the transfer of 200 company-operated stores to licensed stores over the past 12 months.
  • sbux_10k_2017-11-17_74_341
    Financial - Expense
    Cost of sales including occupancy costs as a percentage of total net revenues decreased 110 basis points, primarily driven by favorability from the transition to Chinas new value added tax structure approximately 120 basis points.
  • sbux_10k_2017-11-17_3_6
    Revenue - Product
    Excluding $412.4 million from extra week of fiscal 2016, net revenues grew 7%.
  • sbux_10k_2017-11-17_17_36
    Revenue - Product
    When excluding the revenue of the 53rd week in fiscal 2016, segment revenues grew by 6%.
  • sbux_10k_2017-11-17_123_374
    Other - Other
    Effective tax rate including noncontrolling interests
  • sbux_10k_2017-11-17_50_322
    Other - Other
    Effective tax rate including noncontrolling interests
  • sbux_10k_2017-11-17_179_161
    Other - Other
    Amounts outstanding under the commercial paper program are required to be backstopped by available commitments under our credit facilities discussed above.
  • sbux_10k_2017-11-17_14_23
    Revenue - Product
    The success of our premium food offerings coupled with innovation across our coffee and tea beverage platforms drove the increase in comparable store sales.
  • sbux_10k_2017-11-17_34_51
    Revenue - Product
    CPG, foodservice and other revenues increased $64 million, driven by increased sales through our international channels, primarily associated with our European and North American regions $35 million, increased sales of U.S. packaged coffee $32 million, foodservice $30 million and premium single-serve products $23 million.
  • sbux_10k_2017-11-17_58_328
    Revenue - Geography
    Americas total net revenues for fiscal 2017 increased $857 million, or 6%, over fiscal 2016, primarily due to increased revenues from company-operated stores contributing $749 million and licensed stores contributing $99 million.
  • sbux_10k_2017-11-17_104_102
    Revenue - Product
    Total net revenues increased $2.2 billion, or 11%, over fiscal 2015, primarily due to increased revenues from company-operated stores contributing $1.6 billion.
  • sbux_10k_2017-11-17_204_208
    Revenue - Geography
    Market risk is defined as the risk of losses due to changes in commodity prices, foreign currency exchange rates, equity security prices and interest rates.
  • sbux_10k_2017-11-17_53_66
    Revenue - Product
    The increase was partially offset by the largely non-taxable gain on the sale of our Singapore retail operations in the fourth quarter of fiscal 2017 approximately 70 basis points.
  • sbux_10k_2017-11-17_174_411
    MA - Other
    During the first quarter of fiscal 2018, we replaced our $1.5 billion 2016 credit facility with a new $2.0 billion unsecured 5-year revolving credit facility the 2018 credit facility and a $1.0 billion unsecured 364-Day credit facility the 364-day credit facility , which are available for working capital, capital expenditures and other corporate purposes, including acquisitions and share repurchases.
  • sbux_10k_2017-11-17_26_44
    MA - Other
    To successfully achieve these priorities, we will undertake a number of initiatives, including the pending transaction to acquire full ownership of our joint venture in East China and converting our Taiwan and Singapore markets to fully licensed operations.
  • sbux_10k_2017-11-17_3_5
    Revenue - Product
    Total net revenues increased 5% to $22.4 billion in fiscal 2017 compared to $21.3 billion in fiscal 2016.
  • sbux_10k_2017-11-17_8_13
    Revenue - Product
    The increase was primarily driven by growth in comparable store sales, improved sales leverage and the gain on the sale of Singapore retail operations, partially offset by restructuring and impairment charges.
  • sbux_10k_2017-11-17_65_333
    Financial - Expense
    General and administrative expenses as a percentage of total net revenues were flat, primarily driven by higher salaries and benefits approximately 10 basis points, offset by sales leverage.
  • sbux_10k_2017-11-17_173_144
    Revenue - Product
    Our investment portfolio primarily includes highly liquid available-for-sale securities, including corporate debt securities, government treasury securities domestic and foreign, mortgage and asset-backed securities, agency obligations, and state and local government obligations.
  • sbux_10k_2017-11-17_173_143
    MA - Other
    We actively manage our cash and investments in order to internally fund operating needs, make scheduled interest and principal payments on our borrowings, make acquisitions, and return cash to shareholders through common stock cash dividend payments and share repurchases.
  • sbux_10k_2017-11-17_26_43
    MA - Other
    These priorities are our main focus to grow our core business with new customer acquisition through store growth, digital engagement and innovation, while we continue to foster long-term customer relationships.
  • sbux_10k_2017-11-17_107_360
    Revenue - Product
    CPG, foodservice and other revenues increased $214 million, primarily due to higher sales of premium single-serve products $106 million, the impact of the extra week in fiscal 2016 $47 million, and increased foodservice sales $34 million and U.S. packaged coffee $32 million.
  • sbux_10k_2017-11-17_17_37
    Financial - Income
    Operating income grew $86 million, or 11%, to $893 million.
  • sbux_10k_2017-11-17_26_46
    Other - Other
    These strategic actions will enable us to focus on businesses and products with the highest growth potential and greatest prospect for returns.
  • sbux_10k_2017-11-17_239_437
    Financial - Cash Flow
    ability to achieve the forecasted cash flows used in our fair value calculations is affected by factors such as the success of strategic initiatives, changes in economic conditions, changes in our operating performance and changes in our business strategies, including retail initiatives and international expansion.
  • sbux_10k_2017-11-17_5_9
    Financial - Earnings
    Operating margin compression in fiscal 2017 was primarily driven by increased partner employee and digital investments, largely in the Americas segment, restructuring and impairment charges
  • sbux_10k_2017-11-17_73_340
    Revenue - Product
    , primarily driven by increased product sales to and royalty revenues from licensees $39 million, primarily resulting from the opening of 644 net new licensed stores over the past 12 months, partially offset the absence of the 53rd week $4 million
  • sbux_10k_2017-11-17_86_86
    Revenue - Product
    As a percentage of company-operated store revenues, store operating expenses increased 330 basis points, primarily due to sales deleverage in certain company-operated stores
  • sbux_10k_2017-11-17_133_382
    Revenue - Geography
    Americas total net revenues for fiscal 2016 increased $1.5 billion, or 11%, primarily due to increased revenues from company-operated stores contributing $1.3 billion and licensed stores contributing $184 million.
  • sbux_10k_2017-11-17_144_122
    Revenue - Geography
    ChinaAsia Pacific total net revenues for fiscal 2016 increased $543 million, or 23%, largely due to increased revenues from company-operated stores contributing $513 million.
  • sbux_10k_2017-11-17_167_405
    Financial - Expense
    Other operating expenses as a percentage of total net revenues decreased 40 basis points, primarily driven by sales leverage on marketing expenses and salaries and benefits approximately 30 basis points.
  • sbux_10k_2017-11-17_43_315
    Financial - Income
    Income from equity investees increased $73 million, due to higher income from our CAP joint venture operations, primarily China
  • sbux_10k_2017-11-17_53_64
    Other - Other
    The effective tax rate for fiscal 2017 was 33.2% compared to 32.9% for fiscal 2016.
  • sbux_10k_2017-11-17_128_114
    Other - Other
    The effective tax rate for fiscal 2016 was 32.9% compared to 29.3% for fiscal 2015.
  • sbux_10k_2017-11-17_243_278
    Financial - Income
    Our assumptions regarding future taxable income are consistent with the plans and estimates we use to manage our underlying businesses.
  • sbux_10k_2017-11-17_211_224
    Financial - Cash Flow
    To reduce cash flow volatility from foreign currency fluctuations, we enter into derivative instruments to hedge portions of cash flows of anticipated intercompany royalty payments, inventory purchases, intercompany borrowing and lending activities and certain other transactions in currencies other than the functional currency of the entity that enters into the arrangements, as well as the translation risk of certain balance sheet items.
  • sbux_10k_2017-11-17_179_163
    Other - Other
    As of October 1, 2017, we had no borrowings under our former commercial paper program.
  • sbux_10k_2017-11-17_238_269
    Revenue - Product
    The fair value calculation includes estimates of revenue growth, which are based on past performance and internal projections for the intangible asset groups forecasted growth, and royalty rates, which are adjusted for our particular facts and circumstances.
  • sbux_10k_2017-11-17_7_10
    Financial - Expense
    Restructuring and impairment charges for fiscal 2017 were $153.5 million and primarily related to our strategic changes in our Teavana business including a partial goodwill impairment, store asset impairments, costs associated with early closure of stores and severance.
  • sbux_10k_2017-11-17_42_61
    Revenue - Geography
    Additionally, we recorded $18 million of partial goodwill impairment relating to our Switzerland retail business.
  • sbux_10k_2017-11-17_102_101
    Other - Other
    The increase in the operating loss in the fourth quarter of fiscal 2017 compared to the fourth quarter of fiscal 2016 was primarily due to restructuring and impairment charges related to our strategy to close TeavanaTM retail stores and focus on TeavanaTM tea within Starbucks
  • sbux_10k_2017-11-17_27_305
    Financial - Earnings
    Diluted earnings per share for fiscal 2018 is expected to grow in excess of 40% when compared to fiscal 2017, largely due to the anticipated gain associated with the pending acquisition of East China.
  • sbux_10k_2017-11-17_235_436
    Other - Other
    Goodwill and Indefinite-Lived Intangible Assets
  • sbux_10k_2017-11-17_148_128
    Revenue - Product
    Excluding the impact of company-operated store revenues, other operating expenses increased 40 basis points, primarily due to higher payroll-related expenditures approximately 140 basis points, investments in digital platforms approximately 80 basis points and the impact of our ownership change in Starbucks Japan approximately 60 basis points, partially offset by sales leverage approximately 220 basis points.
  • sbux_10k_2017-11-17_117_368
    MA - Other
    Gain resulting from acquisition of joint venture
  • sbux_10k_2017-11-17_25_304
    Financial - Shares / Equity
    Gain Share of At-Home Coffee
  • sbux_10k_2017-11-17_236_259
    Other - Other
    We evaluate goodwill and indefinite-lived intangible assets for impairment annually during our third fiscal quarter, or more frequently if an event occurs or circumstances change that would indicate that impairment may exist.
  • sbux_10k_2017-11-17_13_21
    Financial - Earnings
    Earnings per share of $1.97 increased 4% over the prior year earnings per share of $1.90.
  • sbux_10k_2017-11-17_45_317
    Financial - Earnings
    The combination of these changes resulted in an overall decrease in operating margin of 110 basis points in fiscal 2017 when compared to fiscal 2016.
  • sbux_10k_2017-11-17_67_335
    Financial - Earnings
    The combination of these changes resulted in an overall decrease in operating margin of 190 basis points in fiscal 2017 when compared to fiscal 2016.
  • sbux_10k_2017-11-17_92_350
    Financial - Earnings
    The combination of these changes resulted in an overall decrease in operating margin of 200 basis points in fiscal 2017 when compared to fiscal 2016.
  • sbux_10k_2017-11-17_237_266
    Financial - Cash Flow
    These estimates, as well as the selection of comparable companies and valuation multiples used in the market approaches are highly subjective, and our ability to realize the future cash flows used in our fair value calculations is affected by factors such as the success of strategic initiatives, changes in economic conditions, changes in our operating performance and changes in our business strategies, including retail initiatives and international expansion.
  • sbux_10k_2017-11-17_35_311
    Financial - Expense
    Cost of sales including occupancy costs
  • sbux_10k_2017-11-17_69_337
    Financial - Expense
    Cost of sales including occupancy costs
  • sbux_10k_2017-11-17_55_325
    Financial - Expense
    Cost of sales including occupancy costs
  • sbux_10k_2017-11-17_80_344
    Financial - Expense
    Cost of sales including occupancy costs
  • sbux_10k_2017-11-17_130_379
    Financial - Expense
    Cost of sales including occupancy costs
  • sbux_10k_2017-11-17_141_387
    Financial - Expense
    Cost of sales including occupancy costs
  • sbux_10k_2017-11-17_101_357
    Financial - Expense
    Cost of sales including occupancy costs
  • sbux_10k_2017-11-17_108_361
    Financial - Expense
    Cost of sales including occupancy costs
  • sbux_10k_2017-11-17_170_408
    Financial - Expense
    Cost of sales including occupancy costs
  • sbux_10k_2017-11-17_153_396
    Financial - Expense
    Cost of sales including occupancy costs
  • sbux_10k_2017-11-17_175_150
    Financial - Earnings
    The current applicable margin is 0.565% for Eurocurrency Rate Loans and 0.00% nil for Base Rate Loans.
  • sbux_10k_2017-11-17_176_154
    Financial - Earnings
    The applicable margin is 0.585% for Eurocurrency Rate Loans and 0.00% nil for Base Rate Loans.
  • sbux_10k_2017-11-17_209_220
    Financial - Earnings
    The following table summarizes the potential impact as of October 1, 2017 to Starbucks future net earnings and other comprehensive income OCI from changes in commodity prices.
  • sbux_10k_2017-11-17_215_228
    Financial - Shares / Equity
    We have minimal exposure to price fluctuations on equity mutual funds and equity exchange-traded funds within our trading securities portfolio.
  • sbux_10k_2017-11-17_179_159
    Other - Other
    During the first quarter of fiscal 2018, we increased our commercial paper program from $1 billion to $3 billion, allowing us to issue unsecured commercial paper notes up to this maximum aggregate amount outstanding at any time.

 Please wait while we load the requested 10-K Annual Report. If it does not load, please click the link below:

 https://www.last10k.com/sec-filings/report/829224/000082922417000049/sbux-1012017x10xk.htm

Companies may provide additional information to their SEC Filings as exhibits. Click a link below to view an exhibit that was filed with this report:

Exhibit 10.24 - MATERIAL CONTRACT

 Please wait while we load the requested exhibit. If it does not load, please click the link below:

 https://www.last10k.com/sec-filings/report/829224/000082922417000049/sbux-1012017xexhibit1024.htm
Exhibit 10.25 - MATERIAL CONTRACT

 Please wait while we load the requested exhibit. If it does not load, please click the link below:

 https://www.last10k.com/sec-filings/report/829224/000082922417000049/sbux-1012017xexhibit1025.htm
Exhibit 10.26 - MATERIAL CONTRACT

 Please wait while we load the requested exhibit. If it does not load, please click the link below:

 https://www.last10k.com/sec-filings/report/829224/000082922417000049/sbux-1012017xexhibit1026.htm
Exhibit 12 - STATEMENT REGARDING CALCULATION OF RATIOS

 Please wait while we load the requested exhibit. If it does not load, please click the link below:

 https://www.last10k.com/sec-filings/report/829224/000082922417000049/sbux-1012017xexhibit12.htm
Exhibit 21 - SUBSIDARIES OF THE REGISTRANT

 Please wait while we load the requested exhibit. If it does not load, please click the link below:

 https://www.last10k.com/sec-filings/report/829224/000082922417000049/sbux-1012017xexhibit21.htm
Exhibit 23 - CONSENTS OF EXPERTS AND COUNSEL

 Please wait while we load the requested exhibit. If it does not load, please click the link below:

 https://www.last10k.com/sec-filings/report/829224/000082922417000049/sbux-1012017xexhibit23.htm
Exhibit 31.1 - RULE 13A-14A/15D-14A CERTIFICATION

 Please wait while we load the requested exhibit. If it does not load, please click the link below:

 https://www.last10k.com/sec-filings/report/829224/000082922417000049/sbux-1012017xexhibit311.htm
Exhibit 31.2 - RULE 13A-14A/15D-14A CERTIFICATION

 Please wait while we load the requested exhibit. If it does not load, please click the link below:

 https://www.last10k.com/sec-filings/report/829224/000082922417000049/sbux-1012017xexhibit312.htm
Exhibit 32 - SECTION 1350 CERTIFICATION

 Please wait while we load the requested exhibit. If it does not load, please click the link below:

 https://www.last10k.com/sec-filings/report/829224/000082922417000049/sbux-1012017xexhibit32.htm
  • Form Type: Annual
  • Number of times amended: 0
  • Accession Number: 0000829224-17-000049
  • Submitted to the SEC: Friday, November 17, 2017 4:10:18 PM EST
  • Accepted by the SEC: Friday, November 17, 2017
  • Fiscal Year ending: October 2017
  • Industry: Retail Eating And Drinking Places
Companies