Equity and Cost Investments (in millions)



	Oct 1, 2017		Oct 2, 2016
Equity method investments	$	432.8	$	305.7
Cost method investments	48.8		48.8
Total	$	481.6	$	354.5

Equity Method Investments

As of October 1, 2017, we had a 50% ownership interest in each of the following international equity method investees: President Starbucks Coffee (East China); Starbucks Coffee Korea Co., Ltd.; President Starbucks Coffee Corporation (Taiwan) Company Limited; and Tata Starbucks Limited (India). These international entities operate licensed Starbucks^® retail stores. We further describe the pending transactions to acquire East China and to divest Taiwan in Note 15, Commitments and Contingencies.

We also license the rights to produce and distribute Starbucks-branded products to our 50% owned joint venture, The North American Coffee Partnership with the Pepsi-Cola Company, which develops and distributes bottled Starbucks^® beverages, including Frappuccino^®coffee drinks, Starbucks Doubleshot^® espresso drinks, Starbucks Refreshers^® beverages, and Starbucks^® Iced Espresso Classics.

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 an insignificant pre-tax gain, which was included in interest income and other, net on our consolidated statements of earnings.

Our share of income and losses from our equity method investments is included in income from equity investees on our consolidated statements of earnings. Also included in this line item is our proportionate share of gross profit resulting from coffee and other product sales to, and royalty and license fee revenues generated from, equity investees. Revenues generated from these related parties were $187.3 million, $164.2 million, and $153.4 million in fiscal years 2017, 2016 and 2015, respectively. Related costs of sales were $109.3 million, $97.5 million, and $94.5 million in fiscal years 2017, 2016 and 2015, respectively. As of October 1, 2017 and October 2, 2016, there were $54.3 million and $55.7 million of accounts receivable from equity investees, respectively, on our consolidated balance sheets, primarily related to product sales and royalty revenues.

Cost Method Investments

As of October 1, 2017 and October 2, 2016, we had $23 million invested in equity interests of entities that develop and operate Starbucks^® licensed stores in several global markets. We have the ability to acquire additional interests in some of these cost method investees at certain intervals. Depending on our total percentage ownership interest and our ability to exercise significant influence over financial and operating policies, additional investments may require application of the equity method of accounting.