Inventories

9 Months Ended

Jun. 27, 2021

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

Inventories (in millions):

	Jun 27, 2021		Sep 27, 2020
Coffee:
Unroasted	$	709.5	$	664.7
Roasted	211.0		223.5
Other merchandise held for sale	268.4		293.9
Packaging and other supplies	359.3		369.3
Total	$	1,548.2	$	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 June 27, 2021, we had committed to purchasing green coffee totaling $517 million under fixed-price contracts and an estimated $834 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 established relationships with our suppliers and continuous monitoring, the risk of non-delivery on these purchase commitments is remote.

During the second quarter of fiscal 2020, we wrote off approximately $50 million of inventory that was expiring or expected to expire due to COVID-19 related store closures, primarily perishable food and beverage ingredients located at our stores, distribution centers and suppliers. We did not record significant write-offs related to COVID-19 during the three quarters ended ended June 27, 2021.