XML 38 R18.htm IDEA: XBRL DOCUMENT v3.10.0.1
Equity
12 Months Ended
Sep. 30, 2018
Equity [Abstract]  
Equity
Equity
In addition to 2.4 billion shares of authorized common stock with $0.001 par value per share, we have authorized 7.5 million shares of preferred stock, none of which was outstanding at September 30, 2018.
We repurchased 131.5 million shares of common stock at a total cost of $7.2 billion, 37.5 million shares at a total cost of $2.1 billion, and 34.9 million shares of common stock at a total cost of $2.0 billion for the years ended September 30, 2018, October 1, 2017, and October 2, 2016, respectively. As of September 30, 2018, 48.8 million shares remained available for repurchase. On November 1, 2018, we announced that our Board of Directors approved an increase of 120 million shares to our ongoing share repurchase program.
Comprehensive Income
Comprehensive income includes all changes in equity during the period, except those resulting from transactions with our shareholders. Comprehensive income is comprised of net earnings and other comprehensive income. Accumulated other comprehensive income reported on our consolidated balance sheets consists of foreign currency translation adjustments and other items and the unrealized gains and losses, net of applicable taxes, on available-for-sale securities and on derivative instruments designated and qualifying as cash flow and net investment hedges.
Changes in AOCI by component for the years ended September 30, 2018, October 1, 2017, and October 2, 2016, net of tax, are as follows:
(in millions)
 Available-for-Sale Securities
 
 Cash Flow Hedges
 
 Net Investment Hedges
 
Translation Adjustment and Other
 
Total
September 30, 2018
 
 
 
 
 
 
 
 
 
Net gains/(losses) in AOCI, beginning of period
$
(2.5
)
 
$
(4.1
)
 
$
14.0

 
$
(163.0
)
 
$
(155.6
)
Net gains/(losses) recognized in OCI before reclassifications
(5.1
)
 
17.9

 
5.6

 
(216.6
)
 
(198.2
)
Net (gains)/losses reclassified from AOCI to earnings
2.7

 
3.9

 

 
16.9

 
23.5

Other comprehensive income/(loss) attributable to Starbucks
(2.4
)
 
21.8

 
5.6

 
(199.7
)
 
(174.7
)
Net gains/(losses) in AOCI, end of period
$
(4.9
)
 
$
17.7

 
$
19.6

 
$
(362.7
)
 
$
(330.3
)
(in millions)
 Available-for-Sale Securities
 
 Cash Flow Hedges
 
 Net Investment Hedges
 
Translation Adjustment and Other
 
Total
October 1, 2017
 
 
 
 
 
 
 
 
 
Net gains/(losses) in AOCI, beginning of period
$
1.1

 
$
10.9

 
$
1.3

 
$
(121.7
)
 
$
(108.4
)
Net gains/(losses) recognized in OCI before reclassifications
(6.6
)
 
40.6

 
12.7

 
(40.7
)
 
6.0

Net (gains)/losses reclassified from AOCI to earnings
3.0

 
(55.6
)
 

 
(0.6
)
 
(53.2
)
Other comprehensive income/(loss) attributable to Starbucks
(3.6
)
 
(15.0
)
 
12.7

 
(41.3
)

(47.2
)
Net gains/(losses) in AOCI, end of period
$
(2.5
)
 
$
(4.1
)
 
$
14.0

 
$
(163.0
)
 
$
(155.6
)
(in millions)
 Available-for-Sale Securities
 
 Cash Flow Hedges
 
 Net Investment Hedges
 
Translation Adjustment and Other
 
Total
October 2, 2016
 
 
 
 
 
 
 
 
 
Net gains/(losses) in AOCI, beginning of period
$
(0.1
)
 
$
25.6

 
$
1.3

 
$
(226.2
)
 
$
(199.4
)
Net gains/(losses) recognized in OCI before reclassifications
2.2

 
(82.1
)
 

 
104.5

 
24.6

Net (gains)/losses reclassified from AOCI to earnings
(1.0
)
 
67.4

 

 

 
66.4

Other comprehensive income/(loss) attributable to Starbucks
1.2

 
(14.7
)
 

 
104.5

 
91.0

Net gains/(losses) in AOCI, end of period
$
1.1

 
$
10.9

 
$
1.3

 
$
(121.7
)
 
$
(108.4
)
Impact of reclassifications from AOCI on the consolidated statements of earnings (in millions):
AOCI
Components
 
Amounts Reclassified from AOCI
 
Affected Line Item in
the Statements of Earnings
 
Fiscal Year Ended
 
 
Sep 30, 2018
 
Oct 1, 2017
 
Oct 2, 2016
 
Gains/(losses) on available-for-sale securities
 
$
(3.6
)
 
$
(4.1
)
 
$
1.6

 
Interest income and other, net
Gains/(losses) on cash flow hedges
 
 
 
 
 
 
 
 
Interest rate hedges
 
4.9

 
4.8

 
5.0

 
Interest expense
Cross-currency swaps
 
2.2

 
57.2

 
(101.1
)
 
Interest income and other, net
Foreign currency hedges
 
(0.4
)
 
3.0

 
4.9

 
Revenues
Foreign currency/coffee hedges
 
(10.6
)
 
5.7

 
11.4

 
Cost of sales including occupancy costs
Translation adjustment(1)
 
 
 
 
 
 
 
 
Brazil
 
(24.1
)
 

 

 
Net gain resulting from divestiture of certain operations
East China joint venture
 
7.2

 

 

 
Gain resulting from acquisition of joint venture
Taiwan joint venture
 
1.4

 

 

 
Net gain resulting from divestiture of certain operations
Other
 
(1.7
)
 
0.6

 

 
Interest income and other, net
 
 
(24.7
)
 
67.2

 
(78.2
)
 
Total before tax
 
 
1.2

 
(14.0
)
 
11.8

 
Tax (expense)/benefit
 
 
$
(23.5
)
 
$
53.2

 
$
(66.4
)
 
Net of tax

(1)  
Release of cumulative translation adjustments to earnings upon sale or liquidation of foreign businesses.