Deferred Revenue

12 Months Ended

Sep. 27, 2020

Revenue from Contract with Customer

Deferred Revenue

In the fourth quarter of fiscal 2018, we licensed the rights to sell and market our products in authorized channels through the Global Coffee Alliance, and received an up-front prepaid royalty from Nestlé. The up-front payment of approximately $7 billion was recorded as deferred revenue as we have continuing performance obligations to support the Global Coffee Alliance, including providing Nestlé access to certain intellectual properties and products for future resale. The up-front payment will be recognized as other revenue on a straight-line basis over the estimated economic life of the arrangement of 40 years for the ongoing access to the licenses within the contractual territories. Our obligations to maintain the Starbucks brand and other intellectual properties are generally constant throughout the term of the arrangement. Therefore, a ratable recognition pattern is reflective of how we satisfy our performance obligations.

At September 27, 2020, the current and long-term deferred revenue related to the Nestlé up-front payment was $179.3 million and $6.5 billion, respectively. At September 29, 2019, the current and long-term deferred revenue related to the Nestlé up-front payment was $175.9 million and $6.7 billion, respectively. During the fiscal years ended September 27, 2020 and September 29, 2019, we recognized $176.8 million and $175.2 million of 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):

Fiscal Year Ended September 27, 2020	Total
Stored value cards and loyalty program at September 29, 2019	$	1,113.7
Revenue deferred - card activations, card reloads and Stars earned	10,527.7
Revenue recognized - card and Stars redemptions and breakage	(10,367.9)
Other(1)	7.0
Stored value cards and loyalty program at September 27, 2020(2)	$	1,280.5
Fiscal Year Ended September 29, 2019	Total
Stored value cards and loyalty program at September 30, 2018	$	1,328.6
Revenue recognition adoption impact	(358.0)
Stored value cards and loyalty program at October 1, 2018	970.6
Revenue deferred - card activations, card reloads and Stars earned	10,983.6
Revenue recognized - card and Stars redemptions and breakage	(10,819.7)
Other(1)	(20.8)
Stored value cards and loyalty program at September 29, 2019(2)	$	1,113.7

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

(2)As of September 27, 2020, approximately $1.2 billion of this amount was current. As of September 29, 2019, approximately $1.0 billion of this amount was current