Deferred Revenue

3 Months Ended

Jan. 02, 2022

Revenue from Contract with Customer

Deferred Revenue

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

As of January 2, 2022, the current and long-term deferred revenue related to Nestlé was $177.9 million and $6.4 billion, respectively. As of October 3, 2021, the current and long-term deferred revenue related to the Nestlé up-front payment was $177.0 million and $6.4 billion, respectively. For each of the quarters ended January 2, 2022 and December 27, 2020, we recognized $44.2 million of prepaid royalty revenue related to Nestlé.

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

Quarter Ended January 2, 2022	Total
Stored value cards and loyalty program at October 3, 2021	$	1,448.5
Revenue deferred - card activations, card reloads and Stars earned	3,917.5
Revenue recognized - card and Stars redemptions and breakage	(3,410.8)
Other(1)	(2.7)
Stored value cards and loyalty program at January 2, 2022(2)	$	1,952.5
Quarter Ended December 27, 2020	Total
Stored value cards and loyalty program at September 27, 2020	$	1,280.5
Revenue deferred - card activations, card reloads and Stars earned	3,437.4
Revenue recognized - card and Stars redemptions and breakage	(2,980.2)
Other(1)	12.3
Stored value cards and loyalty program at December 27, 2020(2)	$	1,750.0

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

(2)As of January 2, 2022 and December 27, 2020, approximately $1.8 billion and $1.6 billion of these amounts were current, respectively.