XML 22 R11.htm IDEA: XBRL DOCUMENT v3.3.1.900
Inventories
3 Months Ended
Dec. 27, 2015
Inventory Disclosure [Abstract]  
Inventories
Inventories (in millions)
 
Dec 27, 2015
 
Sep 27, 2015
 
Dec 28, 2014
Coffee:
 
 
 
 
 
Unroasted
$
559.2

 
$
529.4

 
$
414.2

Roasted
256.6

 
279.7

 
227.2

Other merchandise held for sale
270.8

 
318.3

 
230.2

Packaging and other supplies
156.0

 
179.0

 
146.7

Total
$
1,242.6

 
$
1,306.4

 
$
1,018.3

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 27, 2015, we had committed to purchasing green coffee totaling $701 million under fixed-price contracts and an estimated $353 million under price-to-be-fixed contracts. As of December 27, 2015, approximately $28 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 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.