Inventories

9 Months Ended

Jul. 03, 2022

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

Inventories (in millions):

	Jul 3, 2022		Oct 3, 2021
Coffee:
Unroasted	$	1,046.7	$	670.3
Roasted	295.4		233.5
Other merchandise held for sale	373.6		329.3
Packaging and other supplies	417.2		370.8
Total	$	2,132.9	$	1,603.9

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 July 3, 2022, we had committed to purchasing green coffee totaling $483 million under fixed-price contracts and an estimated $1.2 billion under price-to-be-fixed contracts. A portion of our price-to-be-fixed contracts are effectively fixed through the use of futures. See Note 2, Derivative Financial Instruments, for further discussion. 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.