Revenue Recognition

6 Months Ended

Mar. 29, 2020

Revenue from Contract with Customer

Deferred Revenue

Our deferred revenue primarily consists of the up-front prepaid royalty from Nestlé, for which we have continuing performance obligations to support the Global Coffee Alliance, and our unredeemed stored value card liability and unredeemed loyalty points (“Stars”) associated with our loyalty program.

At March 29, 2020, the current and long-term deferred revenue related to the Nestlé up-front payment was $176.5 million and $6.6 billion, respectively. During the quarter and two quarters ended March 29, 2020, we recognized $44.2 million and $88.4 million in current deferred revenue, respectively, related to amortization of the up-front payment. For the quarter and two quarters ended March 31, 2019, we recognized $43.7 million and $87.8 million in current deferred revenue, respectively, related to amortization of the up-front payment.

Changes in our deferred revenue balance related to our stored value cards and loyalty program (in millions):

Quarter Ended March 29, 2020	Total
Stored value cards and loyalty program at December 29, 2019	1,561.0
Revenue deferred - card activations, card reloads and Stars earned	2,453.6
Revenue recognized - card and Stars redemptions and breakage	(2,736.4)
Other(1)	(5.1)
Stored value cards and loyalty program at March 29, 2020(2)	1,273.1
Two Quarters Ended March 29, 2020	Total
Stored value cards and loyalty program at September 29, 2019	$	1,113.7
Revenue deferred - card activations, card reloads and Stars earned	5,961.1
Revenue recognized - card and Stars redemptions and breakage	(5,798.3)
Other(1)	(3.4)
Stored value cards and loyalty program at March 29, 2020(2)	$	1,273.1

⁽¹⁾“Other” primarily consists of changes in the stored value cards and loyalty program balances resulting from foreign currency translation.

(2)Approximately $1,191.5 million of this amount is current.