
Note 2:	Acquisitions and Divestitures

Fiscal 2016

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 a gain of $0.6 million, which was included in net interest income and other on the consolidated statements of earnings for the quarter ended December 27, 2015.

Fiscal 2015

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. On October 31, 2014, we acquired a controlling interest in Starbucks Japan by funding the first tender offer step with $509 million in offshore cash. We assumed full ownership in the second quarter of fiscal 2015 by completing the second tender offer step, and completed the related cash-out procedure during the remainder of fiscal 2015, which utilized a combined total of $362 million in offshore cash. The remaining amount of the cash-out procedure is immaterial to our consolidated financial statements and represents cash that was unclaimed by minority shareholders, which was recorded in accrued liabilities on our consolidated balance sheets. There are no legal restrictions on the remaining unclaimed balance.

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, and has been adjusted for the reclassification of deferred income taxes as discussed in Note 1, Summary of Significant Accounting Policies (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

The balance of goodwill and the gross carrying value of acquired intangible assets declined $86.3 million and $34.2 million to $729.3 million and $288.8 million, respectively, from the acquisition date to December 27, 2015, due to foreign currency translation. Accumulated amortization related to the acquired intangible assets was $51.8 million as of December 27, 2015.

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 recorded in the first quarter of fiscal 2015 and was presented separately as gain resulting from acquisition of joint venture within other income on our consolidated statements of earnings.