XML 28 R17.htm IDEA: XBRL DOCUMENT v3.19.1
Equity
 6 Months Ended
Mar. 31, 2019
Equity [Abstract]  
Equity Changes in AOCI by component, net of tax (in millions):
Quarter Ended
 Available-for-Sale Debt Securities
 
 Cash Flow Hedges
 
 Net Investment Hedges
 
Translation Adjustment and Other
 
Total
March 31, 2019
 
 
 
 
 
 
 
 
 
Net gains/(losses) in AOCI, beginning of period
$
(2.9
)
 
$
17.5

 
$
3.3

 
$
(361.1
)
 
$
(343.2
)
Net gains/(losses) recognized in OCI before reclassifications
2.9

 
(8.9
)
 
2.2

 
79.7

 
75.9

Net (gains)/losses reclassified from AOCI to earnings
0.1

 
(4.3
)
 
—

 
—

 
(4.2
)
Other comprehensive income/(loss) attributable to Starbucks
3.0

 
(13.2
)
 
2.2

 
79.7

 
71.7

Net gains/(losses) in AOCI, end of period
$
0.1

 
$
4.3

 
$
5.5

 
$
(281.4
)
 
$
(271.5
)
 
 
 
 
 
 
 
 
 
 
April 1, 2018
 
 
 
 
 
 
 
 
 
Net gains/(losses) in AOCI, beginning of period
$
(3.0
)
 
$
(1.1
)
 
$
13.7

 
$
(134.9
)
 
$
(125.3
)
Net gains/(losses) recognized in OCI before reclassifications
(2.6
)
 
(34.3
)
 
(32.8
)
 
178.5

 
108.8

Net (gains)/losses reclassified from AOCI to earnings
0.6

 
24.7

 
—

 
24.1

 
49.4

Other comprehensive income/(loss) attributable to Starbucks
(2.0
)
 
(9.6
)
 
(32.8
)
 
202.6

 
158.2

Net gains/(losses) in AOCI, end of period
$
(5.0
)
 
$
(10.7
)
 
$
(19.1
)
 
$
67.7

 
$
32.9

 
 
 
 
 
 
 
 
 
 
Two Quarters Ended
 Available-for-Sale Debt Securities
 
 Cash Flow Hedges
 
 Net Investment Hedges
 
Translation Adjustment and Other
 
Total
March 31, 2019
 
 
 
 
 
 
 
 
 
Net gains/(losses) in AOCI, beginning of period
$
(4.9
)
 
$
17.7

 
$
19.6

 
$
(362.7
)
 
$
(330.3
)
Net gains/(losses) recognized in OCI before reclassifications
4.6

 
(16.2
)
 
(14.1
)
 
81.3

 
55.6

Net (gains)/losses reclassified from AOCI to earnings
0.4

 
2.8

 
—

 
—

 
3.2

Other comprehensive income/(loss) attributable to Starbucks
5.0

 
(13.4
)
 
(14.1
)
 
81.3

 
58.8

Net gains/(losses) in AOCI, end of period
$
0.1

 
$
4.3

 
$
5.5

 
$
(281.4
)
 
$
(271.5
)
 
 
 
 
 
 
 
 
 
 
April 1, 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
(4.3
)
 
(36.2
)
 
(33.1
)
 
213.8

 
140.2

Net (gains)/losses reclassified from AOCI to earnings
1.8

 
29.6

 
—

 
16.9

 
48.3

Other comprehensive income/(loss) attributable to Starbucks
(2.5
)
 
(6.6
)
 
(33.1
)
 
230.7

 
188.5

Net gains/(losses) in AOCI, end of period
$
(5.0
)
 
$
(10.7
)
 
$
(19.1
)
 
$
67.7

 
$
32.9


Impact of reclassifications from AOCI on the consolidated statements of earnings (in millions):
Quarter Ended
 
 
 
 
 
 
AOCI
Components
 
Amounts Reclassified from AOCI
 
Affected Line Item in
the Statements of Earnings
 
Mar 31, 2019
 
Apr 1, 2018
 
Gains/(losses) on available-for-sale debt securities
 
$
0.2

 
$
(0.8
)
 
Interest income and other, net
Gains/(losses) on cash flow hedges
 
 
 
 
 
 
Interest rate hedges
 
1.4

 
1.2

 
Interest expense
Cross-currency swaps
 
1.3

 
(26.1
)
 
Interest income and other, net
Foreign currency hedges
 
1.3

 
(1.4
)
 
Revenues
Foreign currency/coffee hedges
 
1.6

 
(4.2
)
 
Cost of sales including occupancy costs
Gains/(losses) on net investment hedges
 
—

 
—

 
Interest income and other, net
Translation adjustment
 
 
 
 
 
 
Brazil
 
—

 
(24.1
)
 
Gain/(loss) resulting from divestiture of certain operations
Other
 
—

 
0.1

 
Interest income and other, net
 
 
5.8

 
(55.3
)
 
Total before tax
 
 
(1.6
)
 
5.9

 
Tax (expense)/benefit
 
 
$
4.2

 
$
(49.4
)
 
Net of tax
Two Quarters Ended
 
 
 
 
 
 
AOCI
Components
 
Amounts Reclassified from AOCI
 
Affected Line Item in
the Statements of Earnings
 
Mar 31, 2019
 
Apr 1, 2018
 
Gains/(losses) on available-for-sale debt securities
 
$
0.7

 
$
(2.4
)
 
Interest income and other, net
Gains/(losses) on cash flow hedges
 
 
 
 
 
 
Interest rate hedges
 
2.8

 
2.4

 
Interest expense
Cross-currency swaps
 
(10.4
)
 
(26.6
)
 
Interest income and other, net
Foreign currency hedges
 
2.7

 
(1.8
)
 
Revenues
Foreign currency/coffee hedges
 
1.9

 
(9.9
)
 
Cost of sales including occupancy costs
Gains/(losses) on net investment hedges
 
—

 
—

 
Interest income and other, net
Translation adjustment
 
 
 
 
 
 
Brazil
 
—

 
(24.1
)
 
Gain/(loss) resulting from divestiture of certain operations
East China joint venture
 
—

 
7.2

 
Gain resulting from acquisition of joint venture
Taiwan joint venture
 
—

 
1.4

 
Gain/(loss) resulting from divestiture of certain operations
Other
 
—

 
(1.7
)
 
Interest income and other, net
 
 
(2.3
)
 
(55.5
)
 
Total before tax
 
 
(0.9
)
 
7.2

 
Tax (expense)/benefit
 
 
$
(3.2
)
 
$
(48.3
)
 
Net of tax


In addition to 2.4 billion shares of authorized common stock with $0.001 par value per share, the Company has authorized 7.5 million shares of preferred stock, none of which was outstanding as of March 31, 2019.
In September 2018, we entered into accelerated share repurchase agreements (“ASR agreements”) with third-party financial institutions totaling $5.0 billion, effective October 1, 2018. We made a $5.0 billion upfront payment to the financial institutions
and received an initial delivery of 72.0 million shares. In March 2019, we received an additional 4.9 million shares upon the completion of the program based on a volume-weighted average share price (less discount) of $65.03.
In March 2019, we entered into ASR agreements with third-party financial institutions totaling $2.0 billion, effective March 22, 2019. We made a $2.0 billion upfront payment to the financial institutions and received an initial delivery of 22.2 million shares of our common stock, which approximated 80 percent of the total value based on our share price of $71.96 at the inception of the agreement. Upon completion, the total shares repurchased will be based on the volume-weighted average share price during the term of the ASR agreements less an applicable discount. The financial institutions may be required to deliver additional shares or, under certain circumstances, we may elect to deliver shares or make a cash payment to the financial institutions. Final settlement is expected to be completed no later than June 2019.
Outside of the ASR agreements noted above, we repurchased 10.2 million shares of common stock for $713.2 million on the open market during the two quarters ended March 31, 2019. In connection with the ASR agreements and other open market transactions, we repurchased 109.3 million shares of common stock at a total cost of $7.7 billion for the two quarters ended March 31, 2019. During the same period of fiscal 2018, we repurchased 55.9 million shares at a total cost of $3.2 billion. In the first quarter 2019, we announced that our Board of Directors approved an increase of 120 million shares to our ongoing share repurchase program. As of March 31, 2019, 59.5 million shares remained available for repurchase under current authorizations.
During the second quarter of fiscal 2019, our Board of Directors declared a quarterly cash dividend to shareholders of $0.36 per share to be paid on May 24, 2019 to shareholders of record as of the close of business on May 9, 2019.