XML 65 R10.htm IDEA: XBRL DOCUMENT v2.4.0.8
Inventories
3 Months Ended
Dec. 29, 2013
Inventory Disclosure [Abstract]  
Inventories
Inventories
 
(in millions)
Dec 29, 2013
 
Sep 29, 2013
 
Dec 30, 2012
Coffee:
 
 
 
 
 
Unroasted
$
407.6

 
$
493.0

 
$
619.0

Roasted
203.7

 
235.4

 
196.6

Other merchandise held for sale
198.8

 
243.3

 
161.3

Packaging and other supplies
133.2

 
139.5

 
116.3

Total
$
943.3

 
$
1,111.2

 
$
1,093.2


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 December 29, 2013, we had committed to purchasing green coffee totaling $519 million under fixed-price contracts and an estimated $264 million under price-to-be-fixed contracts. As of December 29, 2013, approximately $1 million of our price-to-be-fixed contracts were effectively fixed through the use of futures contracts. Price-to-be-fixed contracts are purchase commitments whereby the quality, quantity, delivery period, and other negotiated terms are agreed upon, but the date, and therefore the price, at which the base “C” coffee commodity price component will be fixed has not yet been established. For these types of contracts, either Starbucks or the seller has the option to “fix” the base “C” coffee commodity price prior to the delivery date. Until prices are fixed, we estimate the total cost of these purchase commitments. We believe, based on relationships established with our suppliers in the past, the risk of non-delivery on these purchase commitments is remote.