Deferred Revenue

3 Months Ended

Apr. 02, 2023

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 April 2, 2023, the current and long-term deferred revenue related to Nestlé was $177.0 million and $6.1 billion, respectively. As of October 2, 2022, the current and long-term deferred revenue related to the Nestlé up-front payment was $177.0 million and $6.2 billion, respectively. During the quarter and two quarters ended April 2, 2023, we recognized $44.1 million and $88.2 million of prepaid royalty revenue related to Nestlé. During the quarter and two quarters ended April 3, 2022, we recognized $44.2 million and $88.4 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 April 2, 2023	Total
Stored value cards and loyalty program at January 1, 2023	$	2,025.6
Revenue deferred - card activations, card reloads and Stars earned	3,416.0
Revenue recognized - card and Stars redemptions and breakage	(3,778.4)
Other(1)	1.3
Stored value cards and loyalty program at April 2, 2023(2)	$	1,664.5
Quarter Ended April 3, 2022	Total
Stored value cards and loyalty program at January 2, 2022	$	1,952.5
Revenue deferred - card activations, card reloads and Stars earned	3,124.0
Revenue recognized - card and Stars redemptions and breakage	(3,426.3)
Other(1)	(5.0)
Stored value cards and loyalty program at April 3, 2022(2)	$	1,645.2
Two Quarters Ended April 2, 2023	Total
Stored value cards and loyalty program at October 2, 2022	$	1,503.0
Revenue deferred - card activations, card reloads and Stars earned	7,639.4
Revenue recognized - card and Stars redemptions and breakage	(7,492.5)
Other(1)	14.6
Stored value cards and loyalty program at April 2, 2023(2)	$	1,664.5
Two Quarters Ended April 3, 2022	Total
Stored value cards and loyalty program at October 3, 2021	$	1,448.5
Revenue deferred - card activations, card reloads and Stars earned	7,041.5
Revenue recognized - card and Stars redemptions and breakage	(6,837.1)
Other(1)	(7.7)
Stored value cards and loyalty program at April 3, 2022(2)	$	1,645.2

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

(2)As of April 2, 2023 and April 3, 2022, approximately $1.6 billion and $1.5 billion of these amounts were current, respectively.