Inventories

3 Months Ended

Dec. 27, 2020

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

Inventories (in millions):

	Dec 27, 2020		Sep 27, 2020
Coffee:
Unroasted	$	625.8	$	664.7
Roasted	226.9		223.5
Other merchandise held for sale	282.0		293.9
Packaging and other supplies	336.8		369.3
Total	$	1,471.5	$	1,551.4

Other merchandise held for sale includes, among other items, serveware, food and tea. Inventory levels vary due to seasonality, commodity market supply and price fluctuations.

As of December 27, 2020, we had committed to purchasing green coffee totaling $809 million under fixed-price contracts and an estimated $554 million under price-to-be-fixed contracts. We expect to take physical delivery for these contracts. A portion of our price-to-be-fixed contracts are effectively fixed through the use of futures. Price-to-be-fixed contracts are purchase commitments whereby the quality, quantity, delivery period and other negotiated terms are agreed upon, but the date, and therefore the price, at which the base “C” coffee commodity price component will be fixed has not yet been established. For most contracts, either Starbucks or the seller has the option to “fix” the base “C” coffee commodity price prior to the delivery date. For other contracts, Starbucks and the seller may agree upon pricing parameters determined by the base “C” coffee commodity price. Until prices are fixed, we estimate the total cost of these purchase commitments. We believe, based on relationships established with our suppliers in the past and continuous monitoring, the risk of non-delivery on these purchase commitments is remote.