Equity

12 Months Ended

Sep. 29, 2019

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 27, 2020.

Through open market transactions under our share repurchase program, we repurchased 131.5 million shares of common stock at a total cost of $7.2 billion for the year ended September 30, 2018.

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 up-front 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 up-front payment to the financial institutions and received an initial delivery of 22.2 million shares. In June 2019, we received an additional 3.9 million shares upon the completion of the program based on a volume-weighted average share price (less discount) of $76.50.

Outside of the ASR agreements noted above, we repurchased 36.6 million shares of common stock for $3.1 billion on the open market during the year ended September 29, 2019. In total, we repurchased 139.6 million shares at a total cost of $10.1 billion for the year ended September 29, 2019.

Our Board of Directors authorized the repurchase of up to an additional 120 million and 40 million shares under our ongoing share repurchase program during the fiscal first quarter of 2019 and fiscal second quarter of 2020, respectively. We temporarily suspended share repurchases in March 2020. We repurchased 20.3 million shares of common stock for $1.7 billion on the open market during the year ended September 27, 2020. As of September 27, 2020, 48.9 million shares remained available for repurchase under current authorizations.

Subsequent to the fourth quarter of fiscal 2020, our Board of Directors declared a quarterly cash dividend to shareholders of $0.45 per share to be paid on November 27, 2020 to shareholders of record as of the close of business on November 12, 2020.

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 debt 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 27, 2020, September 29, 2019 and September 30, 2018, net of tax, are as follows:


(in millions)	Available-for-Sale Securities		Cash Flow Hedges		Net Investment Hedges		Translation Adjustment and Other		Total
September 27, 2020
Net gains/(losses) in AOCI, beginning of period	$	3.9	$	11.0	$	(10.1)	$	(508.1)	$	(503.3)
Net gains/(losses) recognized in OCI before reclassifications	6.5		(95.0)		28.9		208.4		148.8
Net (gains)/losses reclassified from AOCI to earnings	(4.0)		(1.1)		(9.8)		—		(14.9)
Other comprehensive income/(loss) attributable to Starbucks	2.5		(96.1)		19.1		208.4		133.9
Cumulative effect of accounting adoption	(0.7)		3.0		2.5		—		4.8
Net gains/(losses) in AOCI, end of period	$	5.7	$	(82.1)	$	11.5	$	(299.7)	$	(364.6)


(in millions)	Available-for-Sale Securities		Cash Flow Hedges		Net Investment Hedges		Translation Adjustment and Other		Total
September 29, 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	8.2		(10.7)		(29.7)		(143.7)		(175.9)
Net (gains)/losses reclassified from AOCI to earnings	0.6		4.0		—		(1.7)		2.9
Other comprehensive income/(loss) attributable to Starbucks	8.8		(6.7)		(29.7)		(145.4)		(173.0)

Net gains/(losses) in AOCI, end of period	$	3.9	$	11.0	$	(10.1)	$	(508.1)	$	(503.3)


(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)

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
	Year Ended
	Sep 27, 2020		Sep 29, 2019		Sep 30, 2018
Gains/(losses) on available-for-sale securities	$	4.9	$	0.9	$	(3.6)	Interest income and other, net
Gains/(losses) on cash flow hedges	1.9		(3.9)		(3.9)		Please refer to Note 3, Derivative Instruments for additional information.




Gains/(losses) on net investment hedges	13.3		—		—		Interest expense
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
Thailand	—		1.7		—		Net gain resulting from divestiture of certain operations
Other	—		—		(1.7)		Interest income and other, net
	20.1		(1.3)		(24.7)		Total before tax
	(5.2)		(1.6)		1.2		Tax (expense)/benefit
	$	14.9	$	(2.9)	$	(23.5)	Net of tax

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