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 Starbucks Reports Record Fourth Quarter and Record Fiscal Year 2015 Results
   Thursday, October 29, 2015 4:03:01 PM ET

--Q4 Revenues Jump 18% to a Record $4.9 Billion; Operating Income Up 13% to a Record $969 Million

--Q4 GAAP EPS Rises to a Record $0.43; Non-GAAP EPS Rises 16% to a Record $0.43 Per Share

--Company Issues Strong Outlook for Fiscal 2016 and Increases Global Comp Store Sales Targets

--Board of Directors Approves a 25% Increase in the Quarterly Dividend to $0.20 Per Share

Starbucks Corporation (SBUX ) today reported financial results for its 13-week fiscal fourth quarter and 52-week fiscal year ended September 27, 2015. Fiscal 2014 and fiscal 2015 GAAP results include items which are excluded from non-GAAP results. Please refer to the reconciliation of GAAP measures to non-GAAP measures at the end of this release for more information.



Q4 Fiscal 2015 Highlights:

-- Global comparable store sales increased 8%, driven by a 4% increase in traffic -- Americas comp sales increased 8%, driven by a 4% increase in traffic

-- China/Asia Pacific comp sales increased 6%, driven by a 6% increase in traffic

-- EMEA comp sales increased 5%, driven by a 3% increase in traffic

-- Consolidated net revenues up 18% over Q4 FY14, to $4.9 billion

-- Consolidated GAAP operating income up 13%, to $969.4 million -- Non-GAAP operating income up 14% over Q4 FY14 non-GAAP operating income, to $981.3 million

-- Consolidated GAAP operating margin of 19.7% decreased 70 basis points from Q4 FY14 -- Non-GAAP operating margin of 20.0% decreased 50 basis points from Q4 FY14 non-GAAP operating margin

-- GAAP EPS of $0.43 up 10% over Q4 FY14 GAAP EPS -- Non-GAAP EPS of $0.43 up 16% over Q4 FY14 non-GAAP EPS

-- Starbucks Mobile Order & Pay expanded to U.S. company-operated stores nationwide; became available on Android devices through the Starbucks(R) mobile app

-- Opened 524 net new stores globally in the quarter, including the first Starbucks stores in Panama and in Azerbaijan

Fiscal Year 2015 Highlights:

-- Global comparable store sales increased 7%, driven by a 3% increase in traffic -- Americas comp sales increased 7%, driven by a 3% increase in traffic

-- China/Asia Pacific comp sales increased 9%, driven by an 8% increase in traffic

-- EMEA comp sales increased 4%, driven by a 2% increase in traffic

-- Consolidated net revenues up 17% over FY14, to a record $19.2 billion

-- Consolidated GAAP operating income up 17% over FY14, to $3.6 billion -- Non-GAAP operating income up 19% over FY14 non-GAAP operating income, to $3.7 billion

-- Consolidated GAAP operating margin increased 10 basis points over FY14, to 18.8% -- Non-GAAP operating margin increased 50 basis points over FY14 non-GAAP operating margin, to 19.1%

-- GAAP EPS of $1.82 increased 35% over FY14 GAAP EPS -- Non-GAAP EPS of $1.58 increased 19% over FY14 non-GAAP EPS

-- Company served over 60 million more customer occasions from its U.S. comp store base, and over 72 million more customer occasions from its global comp store base in fiscal 2015 over the prior year

-- Starbucks opened 1,677 net new stores in fiscal 2015, ending the year with 23,043 stores in 68 countries

"Starbucks record Q4 financial results, highlighted by stunning comp store sales increases of 8% globally, 9% in the U.S. driven by a 4% increase in global traffic, demonstrate the strength and relevance of the Starbucks brand around the world," said Howard Schultz, Starbucks chairman and ceo. "And our results underscore the success of the investments we continue to make in our people and business, in new beverage and food innovation and in groundbreaking technology innovation that is deepening our connection to customers everywhere," Schultz added.

"Starbucks performance in Q4 reflected a continuation of the pattern of accelerating momentum we saw with each successive quarter of fiscal 2015," said Scott Maw, Starbucks cfo. "And our Q4 results are particularly gratifying in that they were achieved despite the increase, and acceleration, of the significant partner and digital investments we are making to drive sustained, profitable growth around the world and into the future," Maw added.

Fourth Quarter Fiscal 2015 Summary  
----------------------------------
                                                         
                                                        -----------------------------------------------------------------------------------------------
                                                                                          Quarter Ended Sep 27, 2015
Comparable Store Sales(1)            Sales Growth   Change in Transactions   Change in Ticket
---------------------------------- -------------------- ------------ -------------------- ---------------------- -------------------- ----------------
Consolidated                                                 8%                  4%                    4%
Americas                                                     8%                                     4%                                       5%
CAP                                                          6%                                     6%                                       0%
EMEA                                      5%                  3%                    3%
---------------------------------- -------------------- ------------ -------------------- ---------------------- -------------------- ----------------
(1) Includes only Starbucks company-operated stores open
13 months or longer.
 
                                                                           
                                                               ------------------------------------------------------------------- --------------------
Operating Results                                                               Quarter Ended                  
($ in millions, except per share amounts)   Sep 27, 2015   Sep 28, 2014          Change
----------------------------------------- -------------------- ------------ -------------------- ------------ -------------------- --------------------
Net New Stores                                                      524            503                                   21
Revenues                                                         $4,914.8                          $4,180.8                                 18%
Operating Income                                                  $969.4                            $854.9                                  13%
Operating Margin                                                   19.7%                             20.4%                                (70)bps
EPS                                             $0.43          $0.39               10%
----------------------------------------- -------------------- ------------ -------------------- ------------ -------------------- --------------------

Consolidated net revenues were $4.9 billion in Q4 FY15, an increase of 18% over Q4 FY14. The increase was primarily driven by incremental revenues from the acquisition of Starbucks Japan, an 8% increase in global comparable store sales and the opening of 1,606 net new stores over the past 12 months.

Consolidated operating income grew 13% to $969.4 million in Q4 FY15, up from $854.9 million in Q4 FY14. Consolidated operating margin decreased 70 basis points to 19.7% primarily driven by investments in our store partners (employees) in the Americas segment and the impact of our ownership change in Starbucks Japan, and was partially offset by sales leverage.

                                                                           
Q4 Americas Segment Results
---------------------------
                                                          
                                                 -------------------- -------------------- -------------------- -------------------- --------------------
                                                                          Quarter Ended
($ in millions)                   Sep 27, 2015           Sep 28, 2014              Change
--------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Net New Stores                                            233                                       279                                      (46)
Revenues                                               $3,383.8                                  $3,041.1                                     11%
Operating Income                                        $840.6                                    $743.0                                      13%
Operating Margin                      24.8%                  24.4%                 40 bps
--------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------

Net revenues for the Americas segment were $3.4 billion in Q4 FY15, an increase of 11% over Q4 FY14. The increase was driven by 8% growth in comparable store sales and incremental revenues from 612 net new store openings over the past 12 months.

Operating income of $840.6 million in Q4 FY15 grew 13% versus $743.0 million in Q4 FY14. Operating margin of 24.8% expanded 40 basis points due to sales leverage and was partially offset by investments in our store partners (employees).

                                                                                     
 
Q4 China/Asia Pacific Segment Results
-------------------------------------
                                                                    
                                                           -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                    Quarter Ended
($ in millions)                             Sep 27, 2015           Sep 28, 2014              Change
------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Net New Stores                                                      223                                       199                                       24
Revenues                                                          $652.2                                    $309.9                                     110%
Operating Income                                                  $129.8                                    $103.8                                      25%
Operating Margin                                19.9%                  33.5%               (1,360)bps
------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                

Net revenues for the China/Asia Pacific segment grew 110% over Q4 FY14 to $652.2 million in Q4 FY15. The increase was primarily driven by incremental revenues from the acquisition of Starbucks Japan. Also contributing were incremental revenues from 767 net new store openings over the past 12 months and a 6% increase in comparable store sales.

Operating income grew 25% over Q4 FY14 to $129.8 million in Q4 FY15. Operating margin declined 1,360 basis points to 19.9% due to the impact of our ownership change in Starbucks Japan, which drove a 1,550 basis point decline. The remaining 190 basis point expansion was primarily driven by operational savings.

Q4 EMEA Segment Results                                                
-----------------------
                                                      
                                             -------------------- -------------------- -------------------- -------------------- --------------------
                                                                      Quarter Ended
($ in millions)               Sep 27, 2015           Sep 28, 2014              Change
----------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Net New Stores                                        71                                        38                                        33
Revenues                                            $308.3                                    $321.8                                     (4)%
Operating Income                                     $53.1                                     $38.8                                      37%
Operating Margin                  17.2%                  12.1%                 510 bps
----------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                  

Net revenues for the EMEA segment were $308.3 million in Q4 FY15, a 4% decrease versus Q4 FY14. The decrease was primarily driven by unfavorable foreign currency translation. Partially offsetting the decrease were incremental revenues from the opening of 238 net new licensed stores over the past 12 months and a 5% increase in comparable store sales.

Operating income increased 37% to $53.1 million in Q4 FY15, up from $38.8 million in Q4 FY14. Operating margin expanded 510 basis points to 17.2%, primarily due to sales leverage driven by the ongoing shift in the portfolio towards more licensed stores, and the gains on sales of primarily store assets to licensees in the region.

                                                                                      
Q4 Channel Development Segment Results
--------------------------------------
                                                                     
                                                            -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                     Quarter Ended
($ in millions)                              Sep 27, 2015           Sep 28, 2014              Change
-------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Revenues                                                           $456.7                                    $399.1                                      14%
Operating Income                                                   $197.3                                    $171.5                                      15%
Operating Margin                                 43.2%                  43.0%                 20 bps
-------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                 

Net revenues for the Channel Development segment grew 14% over Q4 FY14 to $456.7 million in Q4 FY15, primarily driven by increased sales of packaged coffee and premium single-serve products.

Operating income of $197.3 million in Q4 FY15 increased 15% compared to Q4 FY14. Operating margin increased 20 basis points to 43.2%, primarily driven by increased income from our North American Coffee Partnership and leverage on cost of sales. The increase was partially offset by higher coffee costs and increased marketing spend.

                                                                             
Q4 All Other Segments Results
-----------------------------
                                                            
                                                   -------------------- -------------------- -------------------- -------------------- --------------------
                                                                            Quarter Ended
($ in millions)                     Sep 27, 2015           Sep 28, 2014              Change
----------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Net New Stores                                              (3)                                      (13)                                       10
Revenues                                                  $113.8                                    $108.9                                      4%
Operating Loss                         $(17.7)                $(13.8)                  28%
----------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                        
                                                                                
Year to Date Financial Results
------------------------------
                                                               
                                                    -------------------- -------------------- ---------------------- -------------------- --------------------
                                                                                              Year Ended Sep 27, 2015
Comparable Store Sales(1)            Sales Growth       Change in Transactions     Change in Ticket
------------------------------ -------------------- -------------------- -------------------- ---------------------- -------------------- --------------------
Consolidated                                                 7%                                         3%                                         4%
Americas                                                     7%                                         3%                                         4%
CAP                                                          9%                                         8%                                         1%
EMEA                                      4%                      2%                      1%
------------------------------ -------------------- -------------------- -------------------- ---------------------- -------------------- --------------------
(1) Includes only Starbucks company-operated stores open
13 months or longer.
 
                                                     
                                                               -------------------- -------------------- -------------------- -------------------- --------------------
Operating Results                                                                        Year Ended                            
($ in millions, except per share amounts)       Sep 27, 2015           Sep 28, 2014              Change
----------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Net New Stores (1)                                                     1,677                  1,599                                      78
Revenues                                                             $19,162.7                                 $16,447.8                                    17%
Operating Income                                                     $3,601.0                                  $3,081.1                                     17%
Operating Margin                                                       18.8%                                     18.7%                                    10 bps
EPS                                                 $1.82                  $1.35                   35%
----------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
(1) Net new stores include the closure of 132 Target
Canada licensed stores in the second quarter of fiscal 2015.
 

Fiscal 2016 Targets

Starbucks fiscal year 2016 will include an extra week in the fourth quarter, as fiscal 2016 is a 53-week year for the company.

The company provides the following FY16 targets, which are based on actual FY15 non-GAAP results as presented in this press release and projected FY16 non-GAAP results where noted. Projected FY16 non-GAAP adjustments relate to the acquisition of Starbucks Japan; please refer to the reconciliation of GAAP measures to non-GAAP measures at the end of this release.

-- Approximately 1,800 net new store openings in the fiscal year: -- Americas: approximately 700, half licensed

-- China/Asia Pacific: approximately 900, two-thirds licensed

-- EMEA: approximately 200, primarily licensed

-- Full year consolidated revenue growth of 10%+ on a 52 week basis, the 53rd week expected to add approximately 2%

-- Global comparable store sales growth somewhat above mid-single digits

-- FY16 operating margin is expected to increase slightly versus prior year: -- Americas: expect moderate improvement over prior year

-- China/Asia Pacific: expected to be flat to down slightly versus prior year

-- EMEA: expected to approach 15%

-- Channel Development: expect moderate improvement versus prior year

-- Expecting a consolidated tax rate between 34% and 35%

-- Full Year FY16 Earnings Per Share, including the 53rd week in Q4 FY16: -- GAAP EPS in the range of $1.84 to $1.86

-- Non-GAAP EPS in the range of $1.87 to $1.89

-- Q1 FY16 Earnings Per Share: -- GAAP EPS in the range of $0.43 to $0.44

-- Non-GAAP EPS in the range of $0.44 to $0.45

-- Capital expenditures of approximately $1.4 billion

Company Updates

-- On October 6, Starbucks announced that Gerri Martin-Flickinger, former Adobe senior executive, had been appointed as chief technology officer effective November 2. Martin-Flickinger will lead the global IT function and play a key role in shaping the technology agenda across the Starbucks business.

-- In its EMEA region, the company announced the following: two new strategic licensing partnerships in Europe; in the first, Starbucks will partner with REWE, a leading premium German retailer, to open Starbucks stores within REWE-operated hyper and supermarkets in prime city locations across Germany beginning in 2016. In the second, Starbucks will partner with Monoprix to open Starbucks stores within Monoprix stores in France with the first store expected to open before the end of 2015. In addition, the company opened its first Starbucks store in Azerbaijan, in collaboration with long-time strategic partner Alshaya.

-- Starbucks made the following announcements with respect to its Latin America region: the company opened its first Starbucks store in Panama in August, in partnership with Premium Restaurants of America (PRA), its long-term strategic licensing partner in Central America. Also in August, the company announced that Baristas Del Caribe has acquired exclusive rights to operate Starbucks(R) stores in Puerto Rico. Starbucks opened its first store in San Juan, Puerto Rico in 2002 and today has 19 stores across the island. In October Starbucks opened its 500th store in Mexico, its largest market in Latin America, with long-term strategic partner Alsea.

-- Building on its 15-year strategic licensing partnership with Hong Kong Maxim’s Group, Starbucks announced plans to open its first location in Cambodia by the end of 2015, representing the company’s 16th market in the fast-growing China/Asia Pacific (CAP) region.

-- In October, Starbucks launched its first Green Apron Delivery service in the Empire State Building in New York City. The pilot project, designed for a dense urban environment, will allow Empire State Building tenants to order from a select menu of food and beverages via a dedicated website. Beverages will then be handcrafted by Starbucks baristas in a designated kitchen within the building and delivered to a designated drop off location.

-- Starbucks Mobile Order & Pay became available on iOS and Android devices in U.S. company-operated stores nationwide on September 22. Following the successful phased launch in the U.S., the company began the international phase of its rollout in approximately 150 London locations in the UK and in approximately 300 Toronto area locations in Canada.

-- The company has selected Chase Commerce Solutions, the global payment processing and merchant acquiring division of JPMorgan Chase & Co., to transition processing of all non-mobile payments and U.S. retail card payment transactions in company-operated stores in addition to partnering on the rollout of chip-enabled payment terminals. Implementation of both services will begin immediately, with complete transition expected by Spring 2016.

-- In September, Moody’s Investors Service upgraded Starbucks senior unsecured ratings to A2 from A3, short-term commercial paper rating to Prime-1 from Prime-2, and senior unsecured shelf to (P)A2 from (P)A3.

-- The company repurchased 29 million shares of common stock in fiscal 2015; nearly 53 million shares remain available for purchase under current authorizations.

-- The Board of Directors declared a cash dividend of $0.20 per share, an increase of 25%, payable on November 27, 2015 to shareholders of record as of November 12, 2015.

Conference Call

Starbucks will be holding a conference call today at 2:00 p.m. Pacific Time, which will be hosted by Howard Schultz, chairman and ceo; Kevin Johnson, president and coo; and Scott Maw, cfo. The call will be webcast and can be accessed at http://investor.starbucks.com . A replay of the webcast will be available until end of day Thursday, November 26, 2015.

About Starbucks

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with stores around the globe, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at news.starbucks.com or www.starbucks.com.

Forward-Looking Statements

This release contains forward-looking statements relating to certain company initiatives, strategies and plans, as well as trends in or expectations regarding our diversified business model, the strength, momentum, health and potential of our business, operations and brand, our innovation, growth and growth opportunities and related investments, shareholder value, earnings per share, revenues, operating margins, profitability, capital expenditures, tax rate, anticipated costs related to the acquisition of Starbucks Japan, comparable store sales and net new stores. These forward-looking statements are based on currently available operating, financial and competitive information and are subject to a number of significant risks and uncertainties. Actual future results may differ materially depending on a variety of factors including, but not limited to, fluctuations in U.S. and international economies and currencies, our ability to preserve, grow and leverage our brands, potential negative effects of material breaches of our information technology systems if any were to occur, costs associated with, and the successful execution of, the company’s initiatives and plans, including the acquisition of Starbucks Japan, the acceptance of the company’s products by our customers, the impact of competition, coffee, dairy and other raw material prices and availability, the effect of legal proceedings, and other risks detailed in the company filings with the Securities and Exchange Commission, including the "Risk Factors" section of Starbucks Annual Report on Form 10-K for the fiscal year ended September 28, 2014. The company assumes no obligation to update any of these forward-looking statements.

                                                                                                                                                               STARBUCKS CORPORATION
                                                                                                                                                        CONSOLIDATED STATEMENTS OF EARNINGS
                                                                                                                                                  (unaudited, in millions, except per share data)
                                                                                                                                                                                                               
                                                                                                                                                      Quarter Ended                                                                                                                           Quarter Ended
                                                                                        -----------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------
                                                                                                       Sep 27,                                Sep 28,                           %                                              Sep 27,                               Sep 28,
                                                                                                        2015                                                      2014                                             Change                                             2015                                                     2014
                                                                                        ----------------------------------   -------------------- ----------------------------------   -------------------- -------------------                       ----------------------------------  -------------------- ----------------------------------
                                                                                                                                                                                                                                                       As a % of total
                                                                                                                                                                                                                                                                                              net revenues
                                                                                                                                                                                                                                                      ----------------------------------------------------------------------------------------
Net revenues:                                                                                                                                                                                                                                                           
 Company-operated stores                                                                      $ 3,886.6                                                 $ 3,275.7                                                 18.6         %                                79.1                    %                                78.4                    %
 Licensed stores                                                                                  481.4                                                     422.6                                                 13.9                                           9.8                                                     10.1
 CPG, foodservice and other                                                                       546.8                                  482.5                              13.3                                          11.1                                  11.5  
                                                                                        ------------------------------------                      ------------------------------------                                                                -------------- --------------------                      -------------- --------------------
Total net revenues                                                                              4,914.8                                                   4,180.8                                                 17.6                                         100.0                                                    100.0
Cost of sales including occupancy costs                                                         1,982.6                                                   1,723.2                                                 15.1                                          40.3                                                     41.2
Store operating expenses                                                                        1,378.6                                                   1,152.1                                                 19.7                                          28.0                                                     27.6
Other operating expenses                                                                          127.9                                                     111.0                                                 15.2                                           2.6                                                      2.7
Depreciation and amortization expenses                                                            234.3                                                     185.4                                                 26.4                                           4.8                                                      4.4
General and administrative expenses                                                               303.9                                  238.6                              27.4                                           6.2                                   5.7  
                                                                                        --------------  --------------------                      --------------  --------------------                                                                -------------- --------------------                      -------------- --------------------
  Total operating expenses                                                                      4,027.3                                                   3,410.3                                                 18.1                                          81.9                                                     81.6
Income from equity investees                                                                       81.9                                   84.4                              (3.0 )                                         1.7                                   2.0  
                                                                                        ------------------------------------                      ------------------------------------                                                                -------------- --------------------                      -------------- --------------------
  Operating income                                                                                969.4                                                     854.9                                                 13.4                                          19.7                                                     20.4
Loss on extinguishment of debt                                                                    (61.1 )                                          --                                                             nm                                (1.2 )                                         --
Interest income and other, net                                                                      6.4                                                      85.7                                                (92.5 )                                         0.1                                                      2.0
Interest expense                                                                                  (18.2 )                                                   (16.4 )                                               11.0                                          (0.4 )                                                   (0.4 )
                                                                                        ------------------------------------                      ------------------------------------                                                                -------------- --------------------                      -------------- --------------------
  Earnings before income taxes                                                                    896.5                                                     924.2                                                 (3.0 )                                        18.2                                                     22.1
Income taxes                                                                                      244.0                                  336.6                             (27.5 )                                         5.0                                   8.1  
                                                                                        ------------------------------------                      ------------------------------------                                                                -------------- --------------------                      -------------- --------------------
Net earnings including noncontrolling interests                                                   652.5                                                     587.6                                                 11.0                                          13.3                                                     14.1
Net earnings/(loss) attributable to noncontrolling interests                             --                                   (0.3 )                                             (100.0 )                              --                        --  
                                                                                        ------------------------------------                      ------------------------------------                                                                -------------- --------------------                      -------------- --------------------
Net earnings attributable to Starbucks                                                        $   652.5                              $   587.9                              11.0                                          13.3                    %                                14.1                    %
                                                                                        ======= ======= ====================                      ======= ======= ====================
                                                                                                                                                                                                                                                                                                                
Net earnings per common share - diluted                                                       $    0.43                              $    0.39                              10.3         %
                                                                                        ======= ======= ====================                      ======= ======= ====================
Weighted avg. shares outstanding - diluted                                                      1,504.5                                                   1,521.6
                                                                                                                                                                                                                                                                                                                
Cash dividends declared per share                                                             $    0.20                                                 $    0.16
                                                                                                                                                                                                                                                                                                                
Supplemental Ratios:
Store operating expenses as a percentage of company-operated store                                                                                                                                                                                              35.5                    %                                35.2                    %
revenues
Effective tax rate including noncontrolling interests                                                                                                                                                                                                           27.2                    %                                36.4                    %
                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                       
                                                                                                                                                   Year Ended                                                                                                                          Year Ended
                                                                                        ---------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------
                                                                                                        Sep 27,                                 Sep 28,                      %                                         Sep 27,                               Sep 28,
                                                                                                         2015                                                       2014                                        Change                                        2015                                                     2014
                                                                                        -----------------------------------   -------------------- -----------------------------------   -------------------- ---------                       ----------------------------------  -------------------- ----------------------------------
                                                                                                                                                                                                                                                                                     As a % of total
                                                                                                                                                                                                                                                                                      net revenues
                                                                                                                                                                                                                                              ----------------------------------------------------------------------------------------
Net revenues:
 Company-operated stores                                                                      $ 15,197.3                                                 $ 12,977.9                                             17.1   %                                79.3                    %                                78.9                    %
 Licensed stores                                                                                 1,861.9                                                    1,588.6                                             17.2                                     9.7                                                      9.7
 CPG, foodservice and other                                                                      2,103.5                                 1,881.3                          11.8                                    11.0                                  11.4  
                                                                                        -------------------------------------                      -------------------------------------                                                      -------------- --------------------                      -------------- --------------------
Total net revenues                                                                              19,162.7                                                   16,447.8                                             16.5                                   100.0                                                    100.0
Cost of sales including occupancy costs                                                          7,787.5                                                    6,858.8                                             13.5                                    40.6                                                     41.7
Store operating expenses                                                                         5,411.1                                                    4,638.2                                             16.7                                    28.2                                                     28.2
Other operating expenses                                                                           522.4                                                      457.3                                             14.2                                     2.7                                                      2.8
Depreciation and amortization expenses                                                             893.9                                                      709.6                                             26.0                                     4.7                                                      4.3
General and administrative expenses                                                              1,196.7                                                      991.3                                             20.7                                     6.2                                                      6.0
Litigation credit                                                                         --                                   (20.2 )                                         (100.0 )                        --                                  (0.1 )
                                                                                        -------------------------------------                      -------------------------------------                                                      -------------- --------------------                      -------------- --------------------
  Total operating expenses                                                                      15,811.6                                                   13,635.0                                             16.0                                    82.5                                                     82.9
Income from equity investees                                                                       249.9                                   268.3                          (6.9 )                                   1.3                                   1.6  
                                                                                        -------------------------------------                      -------------------------------------                                                      -------------- --------------------                      -------------- --------------------
  Operating income                                                                               3,601.0                                                    3,081.1                                             16.9                                    18.8                                                     18.7
Gain resulting from acquisition of joint venture                                                   390.6                                             --                                                   nm                                 2.0                                           --
Loss on extinguishment of debt                                                                     (61.1 )                                           --                                                   nm                                (0.3 )                                         --
Interest income and other, net                                                                      43.0                                                      142.7                                            (69.9 )                                   0.2                                                      0.9
Interest expense                                                                                   (70.5 )                                                    (64.1 )                                           10.0                                    (0.4 )                                                   (0.4 )
                                                                                        -------------------------------------                      -------------------------------------                                                      -------------- --------------------                      -------------- --------------------
  Earnings before income taxes                                                                   3,903.0                                                    3,159.7                                             23.5                                    20.4                                                     19.2
Income taxes                                                                                     1,143.7                                 1,092.0                           4.7                                     6.0                                   6.6  
                                                                                        -------------------------------------                      -------------------------------------                                                      -------------- --------------------                      -------------- --------------------
Net earnings including noncontrolling interests                                                  2,759.3                                                    2,067.7                                             33.4                                    14.4                                                     12.6
Net earnings/(loss) attributable to noncontrolling interests                                         1.9                                    (0.4 )                                                 nm                      --                        --  
                                                                                        -------------------------------------                      -------------------------------------                                                      -------------- --------------------                      -------------- --------------------
Net earnings attributable to Starbucks                                                        $  2,757.4                              $  2,068.1                          33.3   %                                14.4                    %                                12.6                    %
                                                                                        ======= ======== ====================                      ======= ======== ====================
                                                                                                                                                                                                                                                                                                        
Net earnings per common share - diluted                                                       $     1.82                              $     1.35                          34.8   %
                                                                                        ======= ======== ====================                      ======= ======== ====================
Weighted avg. shares outstanding - diluted                                                       1,513.4                                                    1,526.3
                                                                                                                                                                                                                                                                                                        
Cash dividends declared per share                                                             $     0.68                                                 $     0.55
                                                                                                                                                                                                                                                                                                        
Supplemental Ratios:
Store operating expenses as a percentage of company-operated store                                                                                                                                                                                      35.6                    %                                35.7                    %
revenues
Effective tax rate including noncontrolling interests                                                                                                                                                                                                   29.3                    %                                34.6                    %
                                                                                                                                                                                                                                                                                                                       
Segment Results (in millions)                                                                                                                                                          
------------------------------------------------------------------
                                                                                                                                                                                                                                                                                        
Americas
                                                                                                      Sep 27,                              Sep 28,                     %                                   Sep 27,                         Sep 28,
                                                                                                       2015                                                    2014                                       Change                                  2015                                               2014
                                                                                        --------------------------------   -------------------- --------------------------------   -------------------- --------                       -------------------------  -------------------- ------------------------------
Quarter Ended                                                                                                                                                                                                                                                              As a % of
                                                                                                                                                                                                                                                                        Americas total
                                                                                                                                                                                                                                                                         net revenues
------------------------------------------------------------------                                                                                                                                                                     ---------------------------------------------------------------------------
Net revenues:
 Company-operated stores                                                                   $  3,035.0                                              $  2,746.0                                            10.5   %                       89.7                    %                            90.3                    %
 Licensed stores                                                                                341.4                                                   287.3                                            18.8                           10.1                                                  9.4
 Foodservice and other                                                                            7.4                                  7.8                         (5.1 )                          0.2                               0.3  
                                                                                        ----------------------------------                      ----------------------------------                                                     ----- --------------------                      ---------- --------------------
Total net revenues                                                                            3,383.8                                                 3,041.1                                            11.3                          100.0                                                100.0
Cost of sales including occupancy costs                                                       1,220.6                                                 1,133.1                                             7.7                           36.1                                                 37.3
Store operating expenses                                                                      1,111.8                                                   980.9                                            13.3                           32.9                                                 32.3
Other operating expenses                                                                         29.4                                                    25.2                                            16.7                            0.9                                                  0.8
Depreciation and amortization expenses                                                          135.8                                                   122.9                                            10.5                            4.0                                                  4.0
General and administrative expenses                                                              45.6                                 36.0                         26.7                            1.3                               1.2  
                                                                                        ----------------------------------                      ----------------------------------                                                     ----- --------------------                      ---------- --------------------
  Total operating expenses                                                                    2,543.2                              2,298.1                         10.7                           75.2                              75.6  
                                                                                        ----------------------------------                      ----------------------------------                                                     ----- --------------------                      ---------- --------------------
  Operating income                                                                         $    840.6                           $    743.0                         13.1   %                       24.8                    %                            24.4                    %
                                                                                        ==== ======== ====================                      ==== ======== ====================                                                     ===== ====================                      ========== ====================
Supplemental Ratios:
Store operating expenses as a percentage of company-operated store                                                                                                                                                                      36.6                    %                            35.7                    %
revenues
                                                                                                                                                                                                                                                                                        
Year Ended
------------------------------------------------------------------
Net revenues:
 Company-operated stores                                                                   $ 11,925.6                                              $ 10,866.5                                             9.7   %                       89.7                    %                            90.7                    %
 Licensed stores                                                                              1,334.4                                                 1,074.9                                            24.1                           10.0                                                  9.0
 Foodservice and other                                                                           33.4                                 39.1                        (14.6 )                          0.3                               0.3  
                                                                                        ------------  --------------------                      ------------  --------------------                                                     ----- --------------------                      ---------- --------------------
Total net revenues                                                                           13,293.4                                                11,980.5                                            11.0                          100.0                                                100.0
Cost of sales including occupancy costs                                                       4,845.0                                                 4,487.0                                             8.0                           36.4                                                 37.5
Store operating expenses                                                                      4,387.9                                                 3,946.8                                            11.2                           33.0                                                 32.9
Other operating expenses                                                                        122.8                                                   100.4                                            22.3                            0.9                                                  0.8
Depreciation and amortization expenses                                                          522.3                                                   469.5                                            11.2                            3.9                                                  3.9
General and administrative expenses                                                             192.1                                167.8                         14.5                            1.4                               1.4  
                                                                                        ----------------------------------                      ----------------------------------                                                     ----- --------------------                      ---------- --------------------
  Total operating expenses                                                                   10,070.1                              9,171.5                          9.8                           75.8                              76.6  
                                                                                        ----------------------------------                      ----------------------------------                                                     ----- --------------------                      ---------- --------------------
  Operating income                                                                         $  3,223.3                           $  2,809.0                         14.7   %                       24.2                    %                            23.4                    %
                                                                                        ==== ======== ====================                      ==== ======== ====================                                                     ===== ====================                      ========== ====================
Supplemental Ratios:
Store operating expenses as a percentage of company-operated store                                                                                                                                                                      36.8                    %                            36.3                    %
revenues
                                                                                                                                                                                                                                                                                                   
China/Asia Pacific (CAP)                                                                                                                                                               
                                                                                                                                                                                                                                                                                        
                                                                                                     Sep 27,                              Sep 28,                      %                                   Sep 27,                           Sep 28,
                                                                                                      2015                                                    2014                                        Change                                  2015                                                 2014
                                                                                        ------------------------------   -------------------- ----------------------------------   -------------------- --------                       -------------------------  -------------------- ----------------------------------
Quarter Ended                                                                                                                                                                                                                                                              As a % of CAP
                                                                                                                                                                                                                                                                        total net revenues
------------------------------------------------------------------                                                                                                                                                                     -------------------------------------------------------------------------------
Net revenues:
 Company-operated stores                                                                  $   584.8                                                 $   238.4                                           145.3   %                       89.7                    %                                76.9                    %
 Licensed stores                                                                               66.7                                                      71.5                                            (6.7 )                         10.2                                                     23.1
 Foodservice and other                                                                          0.7                         --                               nm                        0.1                        --  
                                                                                        --------------------------------                      ------------------------------------                                                     ----- --------------------                      -------------- --------------------
Total net revenues                                                                            652.2                                                     309.9                                           110.5                          100.0                                                    100.0
Cost of sales including occupancy costs                                                       286.7                                                     149.5                                            91.8                           44.0                                                     48.2
Store operating expenses                                                                      173.8                                                      62.6                                           177.6                           26.6                                                     20.2
Other operating expenses                                                                       18.8                                                      13.1                                            43.5                            2.9                                                      4.2
Depreciation and amortization expenses                                                         44.4                                                      12.7                                           249.6                            6.8                                                      4.1
General and administrative expenses                                                            32.4                                   15.4                        110.4                            5.0                                   5.0  
                                                                                        --------------------------------                      ------------------------------------                                                     ----- --------------------                      -------------- --------------------
  Total operating expenses                                                                    556.1                                                     253.3                                           119.5                           85.3                                                     81.7
Income from equity investees                                                                   33.7                                   47.2                        (28.6 )                          5.2                                  15.2  
                                                                                        --------------------------------                      ------------------------------------                                                     ----- --------------------                      -------------- --------------------
  Operating income                                                                        $   129.8                              $   103.8                         25.0   %                       19.9                    %                                33.5                    %
                                                                                        === ======= ====================                      ======= ======= ====================                                                     ===== ====================                      ============== ====================
Supplemental Ratios:
Store operating expenses as a percentage of company-operated store                                                                                                                                                                      29.7                    %                                26.3                    %
revenues
                                                                                                                                                                                                                                                                                        
Year Ended
------------------------------------------------------------------
Net revenues:
 Company-operated stores                                                                  $ 2,127.3                                                 $   859.4                                           147.5   %                       88.8                    %                                76.1                    %
 Licensed stores                                                                              264.4                                                     270.2                                            (2.1  )%                       11.0                                                     23.9
 Foodservice and other                                                                          4.2                         --                               nm                        0.2                        --  
                                                                                        --------------------------------                      ------------------------------------                                                     ----- --------------------                      -------------- --------------------
Total net revenues                                                                          2,395.9                                                   1,129.6                                           112.1                          100.0                                                    100.0
Cost of sales including occupancy costs                                                     1,071.5                                                     547.4                                            95.7                           44.7                                                     48.5
Store operating expenses                                                                      609.8                                                     221.1                                           175.8                           25.5                                                     19.6
Other operating expenses                                                                       62.2                                                      48.0                                            29.6                            2.6                                                      4.2
Depreciation and amortization expenses                                                        150.7                                                      46.1                                           226.9                            6.3                                                      4.1
General and administrative expenses                                                           120.8                                   58.5                        106.5                            5.0                                   5.2  
                                                                                        --------------------------------                      ------------------------------------                                                     ----- --------------------                      -------------- --------------------
  Total operating expenses                                                                  2,015.0                                                     921.1                                           118.8                           84.1                                                     81.5
Income from equity investees                                                                  119.6                                  164.0                        (27.1 )                          5.0                                  14.5  
                                                                                        --------------------------------                      ------------------------------------                                                     ----- --------------------                      -------------- --------------------
  Operating income                                                                        $   500.5                              $   372.5                         34.4   %                       20.9                    %                                33.0                    %
                                                                                        === ======= ====================                      ======= ======= ====================                                                     ===== ====================                      ============== ====================
Supplemental Ratios:
Store operating expenses as a percentage of company-operated store                                                                                                                                                                      28.7                    %                                25.7                    %
revenues
                                                                                                                                                                                                                                                                                                       
EMEA                                                                                                                                                                             
                                                                                                                                                                                                                                                                                  
                                                                                                    Sep 27,                           Sep 28,                    %                                   Sep 27,                         Sep 28,
                                                                                                     2015                                                 2014                                      Change                                  2015                                               2014
                                                                                        ----------------------------   -------------------- ------------------------------   -------------------- --------                       -------------------------  -------------------- ------------------------------
Quarter Ended                                                                                                                                                                                                                                                     As a % of EMEA
                                                                                                                                                                                                                                                                total net revenues
------------------------------------------------------------------                                                                                                                                                               ---------------------------------------------------------------------------
Net revenues:
 Company-operated stores                                                                  $ 223.2                                             $   247.4                                            (9.8  )%                       72.4                    %                            76.9                    %
 Licensed stores                                                                             71.8                                                  62.6                                            14.7                           23.3                                                 19.5
 Foodservice                                                                                 13.3                               11.8                         12.7                            4.3                               3.7  
                                                                                        ------------------------------                      --------------------------------                                                     ----- --------------------                      ---------- --------------------
Total net revenues                                                                          308.3                                                 321.8                                            (4.2 )                        100.0                                                100.0
Cost of sales including occupancy costs                                                     148.1                                                 158.9                                            (6.8 )                         48.0                                                 49.4
Store operating expenses                                                                     68.3                                                  85.6                                           (20.2 )                         22.2                                                 26.6
Other operating expenses                                                                     11.8                                                  12.3                                            (4.1 )                          3.8                                                  3.8
Depreciation and amortization expenses                                                       13.1                                                  14.9                                           (12.1 )                          4.2                                                  4.6
General and administrative expenses                                                          15.0                               12.0                         25.0                            4.9                               3.7  
                                                                                        ------------------------------                      --------------------------------                                                     ----- --------------------                      ---------- --------------------
  Total operating expenses                                                                  256.3                                                 283.7                                            (9.7 )                         83.1                                                 88.2
Income from equity investees                                                                  1.1                                0.7                         57.1                            0.4                               0.2  
                                                                                        ------------------------------                      --------------------------------                                                     ----- --------------------                      ---------- --------------------
  Operating income                                                                        $  53.1                          $    38.8                         36.9   %                       17.2                    %                            12.1                    %
                                                                                        === ===== ====================                      === ======= ====================                                                     ===== ====================                      ========== ====================
Supplemental Ratios:
Store operating expenses as a percentage of company-operated store                                                                                                                                                                30.6                    %                            34.6                    %
revenues
                                                                                                                                                                                                                                                                                  
Year Ended
------------------------------------------------------------------
Net revenues:
 Company-operated stores                                                                  $ 911.2                                             $ 1,013.8                                           (10.1  )%                       74.9                    %                            78.3                    %
 Licensed stores                                                                            257.2                                                 238.4                                             7.9                           21.1                                                 18.4
 Foodservice                                                                                 48.3                               42.6                         13.4                            4.0                               3.3  
                                                                                        ------------------------------                      --------------------------------                                                     ----- --------------------                      ---------- --------------------
Total net revenues                                                                        1,216.7                                               1,294.8                                            (6.0 )                        100.0                                                100.0
Cost of sales including occupancy costs                                                     582.5                                                 646.8                                            (9.9 )                         47.9                                                 50.0
Store operating expenses                                                                    308.7                                                 365.8                                           (15.6 )                         25.4                                                 28.3
Other operating expenses                                                                     51.8                                                  48.2                                             7.5                            4.3                                                  3.7
Depreciation and amortization expenses                                                       52.0                                                  59.4                                           (12.5 )                          4.3                                                  4.6
General and administrative expenses                                                          56.6                               59.1                         (4.2 )                          4.7                               4.6  
                                                                                        ------------------------------                      --------------------------------                                                     ----- --------------------                      ---------- --------------------
  Total operating expenses                                                                1,051.6                                               1,179.3                                           (10.8 )                         86.4                                                 91.1
Income from equity investees                                                                  3.1                                3.7                        (16.2 )                          0.3                               0.3  
                                                                                        ------------------------------                      --------------------------------                                                     ----- --------------------                      ---------- --------------------
  Operating income                                                                        $ 168.2                          $   119.2                         41.1   %                       13.8                    %                             9.2                    %
                                                                                        === ===== ====================                      === ======= ====================                                                     ===== ====================                      ========== ====================
Supplemental Ratios:
Store operating expenses as a percentage of company-operated store                                                                                                                                                                33.9                    %                            36.1                    %
revenues
                                                                                                                                                                                                                                                                                             
Channel Development                                                                                                                                    
                                                                                                                                                                                                                                                        
                                                                         Sep 27,                            Sep 28,                    %                                   Sep 27,                         Sep 28,
                                                                          2015                                                  2014                                      Change                                  2015                                               2014
                                                            ------------------------------   -------------------- ------------------------------   -------------------- --------                       -------------------------  -------------------- ------------------------------
Quarter Ended                                                                                                                                                                                                                              As a % of
                                                                                                                                                                                                                                      Channel Development
                                                                                                                                                                                                                                      total net revenues
--------------------------------------                                                                                                                                                                 ---------------------------------------------------------------------------
Net revenues:
 CPG                                                          $   353.2                                             $   303.6                                            16.3   %                       77.3                    %                            76.1                    %
 Foodservice                                                      103.5                               95.5                          8.4                           22.7                              23.9  
                                                            --------------------------------                      --------------------------------                                                     ----- --------------------                      ---------- --------------------
Total net revenues                                                456.7                                                 399.1                                            14.4                          100.0                                                100.0
Cost of sales                                                     252.6                                                 214.9                                            17.5                           55.3                                                 53.8
Other operating expenses                                           49.6                                                  44.2                                            12.2                           10.9                                                 11.1
Depreciation and amortization expenses                              0.7                                                   0.6                                            16.7                            0.2                                                  0.2
General and administrative expenses                                 3.6                                4.4                        (18.2 )                          0.8                               1.1  
                                                            --------------------------------                      --------------------------------                                                     ----- --------------------                      ---------- --------------------
  Total operating expenses                                        306.5                                                 264.1                                            16.1                           67.1                                                 66.2
Income from equity investees                                       47.1                               36.5                         29.0                           10.3                               9.1  
                                                            --------------------------------                      --------------------------------                                                     ----- --------------------                      ---------- --------------------
  Operating income                                            $   197.3                          $   171.5                         15.0   %                       43.2                    %                            43.0                    %
                                                            === ======= ====================                      === ======= ====================                                                     ===== ====================                      ========== ====================
                                                                                                                                                                                                                                                        
Year Ended
--------------------------------------
Net revenues:
 CPG                                                          $ 1,329.0                                             $ 1,178.8                                            12.7   %                       76.8                    %                            76.2                    %
 Foodservice                                                      401.9                              367.2                          9.4                           23.2                              23.8  
                                                            --------------------------------                      --------------------------------                                                     ----- --------------------                      ---------- --------------------
Total net revenues                                              1,730.9                                               1,546.0                                            12.0                          100.0                                                100.0
Cost of sales                                                     974.8                                                 882.4                                            10.5                           56.3                                                 57.1
Other operating expenses                                          210.5                                                 187.0                                            12.6                           12.2                                                 12.1
Depreciation and amortization expenses                              2.7                                                   1.8                                            50.0                            0.2                                                  0.1
General and administrative expenses                                16.2                               18.2                        (11.0 )                          0.9                               1.2  
                                                            --------------------------------                      --------------------------------                                                     ----- --------------------                      ---------- --------------------
  Total operating expenses                                      1,204.2                                               1,089.4                                            10.5                           69.6                                                 70.5
Income from equity investees                                      127.2                              100.6                         26.4                            7.3                               6.5  
                                                            --------------------------------                      --------------------------------                                                     ----- --------------------                      ---------- --------------------
  Operating income                                            $   653.9                          $   557.2                         17.4   %                       37.8                    %                            36.0                    %
                                                            === ======= ====================                      === ======= ====================                                                     ===== ====================                      ========== ====================
                                                                                                                                                                                                                                                                   
All Other Segments                                                                                         
                                                                                                                                                                                         
                                                                                              Sep 27,                         Sep 28,                               %
                                                                                               2015                                               2014                                                 Change
                                                                                  ---------------------------   -------------------- ---------------------------   -------------------- ----------------------------------
Quarter Ended
---------------------------------------
Net revenues:
 Company-operated stores                                                           $  43.6                                            $  43.9                                                     (0.7                   )%
 Licensed stores                                                                       1.5                                                1.2                                                     25.0
 CPG, foodservice and other                                                           68.7                            63.8                                   7.7
                                                                                  -----------------------------                      -----------------------------
Total net revenues                                                                   113.8                                              108.9                                                      4.5
Cost of sales including occupancy costs                                               74.0                                               69.9                                                      5.9
Store operating expenses                                                              24.7                                               23.0                                                      7.4
Other operating expenses                                                              19.3                                               16.6                                                     16.3
Depreciation and amortization expenses                                                 4.2                                                3.9                                                      7.7
General and administrative expenses                                                    9.3                             9.3                        --
                                                                                  -----------------------------                      -----------------------------
  Total operating expenses                                                           131.5                           122.7                                   7.2
                                                                                  -----------------------------                      -----------------------------
                                                                                   $ (17.7 )                                          $ (13.8 )                                                   28.3                    %
  Operating loss
                                                                                  == ===== ====================                      == ===== ====================
                                                                                                                                                                                         
Year Ended
---------------------------------------
Net revenues:
 Company-operated stores                                                           $ 233.2                                            $ 238.2                                                     (2.1                   )%
 Licensed stores                                                                       5.9                                                5.1                                                     15.7
 CPG, foodservice and other                                                          286.7                           253.6                                  13.1
                                                                                  -----------------------------                      -----------------------------
Total net revenues                                                                   525.8                                              496.9                                                      5.8
Cost of sales including occupancy costs                                              316.5                                              287.2                                                     10.2
Store operating expenses                                                             104.7                                              104.5                                                      0.2
Other operating expenses                                                              76.5                                               74.6                                                      2.5
Depreciation and amortization expenses                                                16.3                                               15.2                                                      7.2
General and administrative expenses                                                   36.6                            42.2                                 (13.3 )
                                                                                  -----------------------------                      -----------------------------
   Total operating expenses                                                          550.6                           523.7                                   5.1
                                                                                  -----------------------------                      -----------------------------
   Operating loss                                                                  $ (24.8 )                                          $ (26.8 )                                                   (7.5                   )%
                                                                                  == ===== ====================                      == ===== ====================
                                                                                                                                                                                                        
                                                                                   STARBUCKS CORPORATION
                                                                                CONSOLIDATED BALANCE SHEETS
                                                                           (in millions, except per share data)
                                                                                        (unaudited)
                                                                                                                          
                                                                                                                       Sep 27,                                             Sep 28,
                                                                                                                        2015                                                2014
                                                                                                         --------------------------------                        ------------------------
                                       ASSETS
Current assets:
 Cash and cash equivalents                                                                                  $  1,530.1                                              $              1,708.4
 Short-term investments                                                                                           81.3                                                               135.4
 Accounts receivable, net                                                                                        719.0                                                               631.0
 Inventories                                                                                                   1,306.4                                                             1,090.9
 Prepaid expenses and other current assets                                                                       334.2                                                               285.6
 Deferred income taxes, net                                                                                      381.7                                            317.4
                                                                                                         ----------------------------------                      --------------------------
   Total current assets                                                                                        4,352.7                                                             4,168.7
Long-term investments                                                                                            312.5                                                               318.4
Equity and cost investments                                                                                      352.0                                                               514.9
Property, plant and equipment, net                                                                             4,088.3                                                             3,519.0
Deferred income taxes, net                                                                                       828.9                                                               903.3
Other long-term assets                                                                                           415.9                                                               198.9
Other intangible assets                                                                                          520.4                                                               273.5
Goodwill                                                                                                       1,575.4                                            856.2
                                                                                                         ----------------------------------                      --------------------------
TOTAL ASSETS                                                                                                $ 12,446.1                           $             10,752.9
                                                                                                         ==== ======== ====================                      ==== ====================
                               LIABILITIES AND EQUITY
Current liabilities:
 Accounts payable                                                                                           $    684.2                                              $                533.7
 Accrued liabilities                                                                                           1,760.7                                                             1,514.4
 Insurance reserves                                                                                              224.8                                                               196.1
 Stored value card liability                                                                                     983.8                                            794.5
                                                                                                         ----------------------------------                      --------------------------
  Total current liabilities                                                                                    3,653.5                                                             3,038.7
Long-term debt                                                                                                 2,347.5                                                             2,048.3
Other long-term liabilities                                                                                      625.3                                            392.2
                                                                                                         ----------------------------------                      --------------------------
  Total liabilities                                                                                            6,626.3                                                             5,479.2
Shareholders’ equity:
  Common stock ($0.001 par value) -- authorized, 2,400.0 shares; issued                                1.5                                                                 0.7
  and outstanding, 1,485.1 and 1,499.1 shares, respectively
Additional paid-in capital                                                                                        41.1                                                                39.4
Retained earnings                                                                                              5,974.8                                                             5,206.6
Accumulated other comprehensive income/(loss)                                                                   (199.4 )                                                              25.3
                                                                                                         ----------------------------------                      --------------------------
  Total shareholders’ equity                                                        5,818.0                                                             5,272.0
Noncontrolling interest                                                                                            1.8                                              1.7
                                                                                                         ----------------------------------                      --------------------------
  Total equity                                                                                                 5,819.8                                          5,273.7
                                                                                                         ----------------------------------                      --------------------------
TOTAL LIABILITIES AND EQUITY                                                                                $ 12,446.1                           $             10,752.9
                                                                                                         ==== ======== ====================                      ==== ====================
                                                                                                                                                                       
                                                                                                                STARBUCKS CORPORATION
                                                                                                        CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                             (unaudited and in millions)
                                                                                                                                                     
Fiscal Year Ended                                                                                         Sep 27,                                                   Sep 28,                                                   Sep 29,
                                                                                                           2015                                                      2014                                                      2013
---------------------------------------------------------------------                      ----------------------------------                        ----------------------------------                        ----------------------------------
OPERATING ACTIVITIES:
Net earnings including noncontrolling interests                                                  $ 2,759.3                                                 $ 2,067.7                                                 $     8.8
Adjustments to reconcile net earnings to net cash provided by
operating activities:
 Depreciation and amortization                                                                       933.8                                                     748.4                                                     655.6
 Litigation charge                                                                          --                                            --                                                   2,784.1
 Deferred income taxes, net                                                                           21.2                                                      10.2                                                  (1,045.9 )
 Income earned from equity method investees                                                         (190.2 )                                                  (182.7 )                                                  (171.8 )
 Distributions received from equity method investees                                                 148.2                                                     139.2                                                     115.6
 Gain resulting from acquisition/sale of equity in joint ventures and                               (394.3 )                                                   (70.2 )                                                   (80.1 )
 certain retail operations
 Loss on extinguishment of debt                                                                       61.1                                            --                                            --
 Stock-based compensation                                                                            209.8                                                     183.2                                                     142.3
 Excess tax benefit on share-based awards                                                           (132.4 )                                                  (114.4 )                                                  (258.1 )
 Other                                                                                                53.8                                                      36.2                                                      23.0
 Cash provided/(used) by changes in operating assets and liabilities:
  Accounts receivable                                                                                (82.8 )                                                   (79.7 )                                                   (68.3 )
  Inventories                                                                                       (207.9 )                                                    14.3                                                     152.5
  Accounts payable                                                                                   137.7                                                      60.4                                                      88.7
  Accrued litigation charge                                                                 --                                                  (2,763.9 )                                          --
  Income taxes payable, net                                                                           87.6                                                     309.8                                                     298.4
  Accrued liabilities and insurance reserves                                                         124.4                                                     103.9                                                      47.3
  Stored value card liability                                                                        170.3                                                     140.8                                                     139.9
  Prepaid expenses, other current assets and other long-term assets                                   49.5                                    4.6                                   76.3  
                                                                                           ------------------------------------                      ------------------------------------                      ------------------------------------
Net cash provided by operating activities                                                          3,749.1                                                     607.8                                                   2,908.3
INVESTING ACTIVITIES:
Purchases of investments                                                                            (567.4 )                                                (1,652.5 )                                                  (785.9 )
Sales of investments                                                                                 600.6                                                   1,454.8                                                      60.2
Maturities and calls of investments                                                                   18.8                                                     456.1                                                     980.0
Acquisitions, net of cash acquired                                                                  (284.3 )                                          --                                                    (610.4 )
Additions to property, plant and equipment                                                        (1,303.7 )                                                (1,160.9 )                                                (1,151.2 )
Proceeds from sale of equity in joint ventures and certain retail                                      8.9                                                     103.9                                                     108.0
operations
Other                                                                                                  6.8                                  (19.1 )                                                   (11.9 )
                                                                                           ------------------------------------                      ------------------------------------                      ------------------------------------
Net cash used by investing activities                                                             (1,520.3 )                                                  (817.7 )                                                (1,411.2 )
FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt                                                             848.5                                                     748.5                                                     749.7
Repayments of long-term debt                                                                        (610.1 )                                          --                                                     (35.2 )
Cash used for purchase of non-controlling interest                                                  (360.8 )                                          --                                            --
Proceeds from issuance of common stock                                                               191.8                                                     139.7                                                     247.2
Excess tax benefit on share-based awards                                                             132.4                                                     114.4                                                     258.1
Cash dividends paid                                                                                 (928.6 )                                                  (783.1 )                                                  (628.9 )
Repurchase of common stock                                                                        (1,436.1 )                                                  (758.6 )                                                  (588.1 )
Minimum tax withholdings on share-based awards                                                       (75.5 )                                                   (77.3 )                                                  (121.4 )
Other                                                                                                (18.1 )                                                    (6.9 )                                                    10.4  
                                                                                           ------------------------------------                      ------------------------------------                      ------------------------------------
Net cash used by financing activities                                                             (2,256.5 )                                                  (623.3 )                                                  (108.2 )
Effect of exchange rate changes on cash and cash equivalents                                        (150.6 )                                                   (34.1 )                                                    (1.8 )
                                                                                           ------------------------------------                      ------------------------------------                      ------------------------------------
Net (decrease)/increase in cash and cash equivalents                                                (178.3 )                                                  (867.3 )                                                 1,387.1
CASH AND CASH EQUIVALENTS:
Beginning of period                                                                                1,708.4                                2,575.7                                1,188.6  
                                                                                           ------------------------------------                      ------------------------------------                      ------------------------------------
End of period                                                                                    $ 1,530.1                                                 $ 1,708.4                                                 $ 2,575.7
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest, net of capitalized interest                                                            $    69.5                                                 $    56.2                                                 $    34.4
Income taxes, net of refunds                                                                     $ 1,072.2                                                 $   766.3                                                 $   539.1
                                                                                                                                                                                                                                

Supplemental Information

The following supplemental information is provided for historical and comparative purposes.

U.S. Supplemental Data                                          
--------------------------------
                                                                                     
                                                      ------------------------------------------------------------------- --------------------
                                                                       Quarter Ended
($ in millions)                    Sep 27, 2015   Sep 28, 2014          Change
-------------------------------- -------------------- ------------ -------------------- ------------ -------------------- --------------------
Revenues                                                $3,073.0       $2,706.7                                 14%
Comparable Store Sales Growth(1)                           9%                                5%
 Change in Transactions                                    4%                                1%
 Change in Ticket                       5%             4%         
-------------------------------- -------------------- ------------ -------------------- ------------ -------------------- --------------------
(1) Includes only Starbucks company-operated stores open
13 months or longer.
 
Store Data:                                                                                                                                                                                                                                                        
--------------------------
                                                                                                                   Net stores opened (closed) and transferred during the period                                                                                                         
                                                ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------- --------------------
                                                                                      Quarter Ended                                                                             Year Ended                                                                                        Stores open as of
                                                -----------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------                     --------------------------------------------------------------------------
                                                               Sep 27,                             Sep 28,                                              Sep 27,                           Sep 28,                                              Sep 27,                                        Sep 28,
                                                                2015                                                   2014                                                 2015                                                 2014                                                 2015                                           2014
                                                ----------------------------------                       ------------------------------                       ------------------------------                       ------------------------------                       ------------------------------                       --------------------
Americas(1)
 Company-operated stores                                    89                                                  162                                                  276                                                  317                                                8,671                                                          8,395
 Licensed stores                                           144                               117                               336                               381                             6,132                                       5,796
                                                -------------- --------------------                      ---------- --------------------                      ---------- --------------------                      ---------- --------------------                      ---------- --------------------                      --------------------
  Total Americas                                           233                               279                               612                               698                            14,803                                      14,191
                                                -------------- --------------------                      ---------- --------------------                      ---------- --------------------                      ---------- --------------------                      ---------- --------------------                      --------------------
China/Asia Pacific (2,3)
 Company-operated stores                                   101                                                   91                                                1,320                                                  250                                                2,452                                                          1,132
 Licensed stores                                           122                               108                              (482 )                                                492                             3,010                                       3,492
                                                -------------- --------------------                      ---------- --------------------                      ---------- --------------------                      ---------- --------------------                      ---------- --------------------                      --------------------
  Total China/Asia Pacific                                 223                               199                               838                               742                             5,462                                       4,624
                                                -------------- --------------------                      ---------- --------------------                      ---------- --------------------                      ---------- --------------------                      ---------- --------------------                      --------------------
EMEA(4)
 Company-operated stores                                   (47 )                                                (10 )                                                (80 )                                                 (9 )                                                737                                                            817
 Licensed stores                                           118                                48                               302                               180                             1,625                                       1,323
                                                -------------- --------------------                      ---------- --------------------                      ---------- --------------------                      ---------- --------------------                      ---------- --------------------                      --------------------
  Total EMEA                                                71                                                   38                                                  222                                                  171                                                2,362                                                          2,140
All Other Segments
 Company-operated stores                                    (3 )                                                 (9 )                                                  6                                                   12                                                  375                                                            369
 Licensed stores                                --                                (4 )                                                 (1 )                                                (24 )                                                 41                                          42
                                                -------------- --------------------                      ---------- --------------------                      ---------- --------------------                      ---------- --------------------                      ---------- --------------------                      --------------------
  Total All Other Segments                                  (3 )                                                (13 )                                                  5                               (12 )                                                416                                         411
                                                -------------- --------------------                      ---------- --------------------                      ---------- --------------------                      ---------- --------------------                      ---------- --------------------                      --------------------
                                                                                                                                                                                                                               
                                                ------------------------------------                     --------------------------------                     --------------------------------                     --------------------------------                     --------------------------------                     --------------------
Total Company                                              524                               503                             1,677                             1,599                            23,043                                      21,366
                                                ============== ====================                      ========== ====================                      ========== ====================                      ========== ====================                      ========== ====================                      ====================
                                                                                                                                                                                                                                                                                                                              
(1) Americas store data includes the closure of 132
Target Canada licensed stores in the second quarter of fiscal 2015.
(2) China/Asia Pacific store data includes the transfer
of 1,009 Japan stores from licensed stores to company-operated as
a result of the acquisition of Starbucks Japan in the first
quarter of fiscal 2015.
(3) China/Asia Pacific store data has been adjusted for
the transfer of certain company-operated stores to licensed stores
in the fourth quarter of fiscal 2014.
(4) EMEA store data has been adjusted for the transfer
of certain company-operated stores to licensed stores in the
second and fourth quarters of fiscal 2014.
 
 

Non-GAAP Disclosure

In addition to the GAAP results provided in this release, the company provides consolidated non-GAAP earnings per share ("non-GAAP EPS") for Q4 and full year fiscal 2014, consolidated non-GAAP operating income, non-GAAP operating margin and non-GAAP EPS for Q4 and full year fiscal 2015, China/Asia Pacific ("CAP") segment non-GAAP operating income and non-GAAP operating margin for Q4 and full year fiscal 2015, and projected consolidated non-GAAP EPS for Q1 and full year fiscal 2016. These non-GAAP financial measures are not in accordance with, or alternatives for, generally accepted accounting principles in the United States. The GAAP measures most directly comparable to non-GAAP operating income, non-GAAP operating margin, and non-GAAP EPS are operating income, operating margin, and diluted net earnings per share, respectively. The company’s management believes that providing these non-GAAP financial measures better enables investors to understand and evaluate the company’s historical and prospective operating performance.

The consolidated Q4 and full year fiscal 2014 non-GAAP operating income and non-GAAP operating margin financial measures exclude the costs from transactions in Q4 fiscal 2014, which consist of acquisition costs related to Starbucks Japan and costs related to the sale of our Australia retail operations. The remaining majority of the impact from these and other transactions was included in net interest income and other and therefore the consolidated Q4 and full year fiscal 2014 non-GAAP EPS financial measures exclude the full net benefit from all of the transactions. More specifically, the full net benefit from these transactions consists of a gain on the sale of our Malaysia equity method investment, partially offset by a loss on the sale of our Australia retail operations and transaction costs incurred related to the acquisition of Starbucks Japan. The consolidated full year fiscal 2014 non-GAAP EPS also excludes the benefit recognized from a Kraft related litigation credit in Q1 fiscal 2014. Management excludes these items because they believe the impacts do not reflect expected future gains, credits or expenses and do not contribute to a meaningful evaluation of the company’s future operating performance or comparisons to the company’s past operating performance.

The consolidated Q4 and full year fiscal 2015 non-GAAP financial measures exclude certain Starbucks Japan acquisition-related items, specifically amortization expense from acquired intangible assets and transaction and integration costs. The Q4 and full year fiscal 2015 CAP segment non-GAAP financial measures exclude the amortization expense from acquired intangible assets related to the acquisition of Starbucks Japan. In addition to the Starbucks Japan acquisition-related items, the consolidated Q4 and full year fiscal 2015 non-GAAP EPS exclude losses and costs related to the redemption of the company’s $550 million of 6.250% 2017 Senior Notes and an incremental tax benefit related to a U.S. manufacturing deduction. Losses and costs related to the redemption are included as debt extinguishment-related items. The consolidated Q1 and full year fiscal 2015 non-GAAP EPS also exclude the gain in Q1 related to the fair value adjustment of Starbucks 39.5% ownership in Starbucks Japan prior to the acquisition. Management excludes the acquisition-related transaction costs described above because they believe these items do not reflect expected future expenses and do not contribute to a meaningful evaluation of the company’s future operating performance or comparisons to the company’s past operating performance. In addition, management believes it is useful to exclude the integration costs and the amortization of the acquired intangible assets when evaluating performance because they are not representative of our core business operations. Although these items will affect earnings per share beyond fiscal 2015, the majority of these costs will be recognized over a finite period of time. More specifically, integration costs are expected to be concentrated in the first several years post-acquisition. Additionally, the amounts of the acquired intangible assets are specific to the transaction and the related amortization was fixed at the time of acquisition and generally cannot subsequently be changed or influenced by management in a future period. Management excludes the fair value gain, debt extinguishment-related items and the incremental tax benefit because they believe these items do not reflect future gains, losses, costs or tax benefits and do not contribute to a meaningful evaluation of the company’s fiscal 2015 operating performance or comparisons of the company’s fiscal 2015 operating performance to the company’s past operating performance.

The projected consolidated non-GAAP EPS for Q1 and full year fiscal 2016 financial measures exclude certain Starbucks Japan acquisition-related items comprised of projected amortization expense from acquired intangible assets and transaction and integration costs. Management is excluding these items from our projected non-GAAP measures for the same reasons described above.

These non-GAAP financial measures may have limitations as analytical tools, and these measures should not be considered in isolation or as a substitute for analysis of the company’s results as reported under GAAP. Other companies may calculate these non-GAAP financial measures differently than the company does, limiting the usefulness of those measures for comparative purposes.

                                                                                                         STARBUCKS CORPORATION
                                                                                     RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
                                                                                                              (unaudited)
                                                                                                                                                               
                                                                                                                           Quarter Ended
                                                                                  -----------------------------------------------------------------------------------------------
                                                                                                 Sep 27,                                Sep 28,                                                 Change
                                                                                                  2015                                                      2014
                                                                                  ----------------------------------                        ----------------------------------                        ------------------------------
Consolidated
------------------------------------------------------------
Operating income, as reported (GAAP)                                                    $   969.4                                                 $   854.9                                                 13.4 %
Costs from transactions in Q4 2014(1)                                              --                                                       2.4
Starbucks Japan acquisition-related items - other(2)                                         11.9                         --  
                                                                                  ------------------------------------                      ------------------------------------
Non-GAAP operating income                                                               $   981.3                              $   857.3                              14.5 %
                                                                                  ======= ======= ====================                      ======= ======= ====================
                                                                                                                                                                                                       
Operating margin, as reported (GAAP)                                                         19.7                    %                                 20.4                    %                             (70 ) bps
Costs from transactions in Q4 2014(1)                                              --                                                       0.1
Starbucks Japan acquisition-related items - other(2)                                          0.2                         --  
                                                                                  ------------------------------------                      ------------------------------------
Non-GAAP operating margin                                                                    20.0                    %                                 20.5                    %                             (50 ) bps
                                                                                  ==============  ====================                      ==============  ====================
                                                                                                                                                                                                       
Diluted net earnings per share, as reported (GAAP)                                      $    0.43                                                 $    0.39                                                 10.3 %
Net benefit from transactions in Q4 2014(3)                                        --                                                     (0.02 )
Starbucks Japan acquisition-related items - other(2)                                         0.01                                            --
Debt extinguishment-related items(4)                                                         0.03                                            --
Tax benefit from domestic manufacturing deduction(5)                                        (0.04 )                                          --  
                                                                                  ------------------------------------                      ------------------------------------
Non-GAAP net earnings per share                                                         $    0.43                              $    0.37                              16.2 %
                                                                                  ======= ======= ====================                      ======= ======= ====================
                                                                                                                                                                                                       
China/Asia Pacific (CAP)
------------------------------------------------------------
Operating income, as reported (GAAP)                                                    $   129.8                                                 $   103.8                                                 25.0 %
Starbucks Japan amortization expense of acquired intangibles                                 11.0                         --  
                                                                                  ------------------------------------                      ------------------------------------
Non-GAAP operating income                                                               $   140.8                              $   103.8                              35.6 %
                                                                                  ======= ======= ====================                      ======= ======= ====================
                                                                                                                                                                                                       
Operating margin, as reported (GAAP)                                                         19.9                    %                                 33.5                    %                          (1,360 ) bps
Starbucks Japan amortization expense of acquired intangibles                                  1.7                         --  
                                                                                  ------------------------------------                      ------------------------------------
Non-GAAP operating margin                                                                    21.6                    %                                 33.5                    %                          (1,190 ) bps
                                                                                  ==============  ====================                      ==============  ====================
                                                                                                                                                                                                                  
(1) Includes a portion of the transaction costs
incurred in Q4 FY14 related to the acquisition of Starbucks Japan
and costs related to the sale of our Australia retail operations
in Q4 FY14. The remaining majority of the impact from these
transactions is included in net interest income and other.
(2) Includes ongoing amortization expense of acquired
intangible assets and transaction and integration costs.
(3) The net benefit from transactions in Q4 FY14
relates primarily to a $0.02 gain on the sale of our Malaysia
equity method investment, partially offset by a loss on the sale
of our Australia retail operations and transaction costs incurred
in Q4 FY14 related to the acquisition of Starbucks Japan.
(4) Represents the loss on extinguishment of debt
($61.1M), which is comprised of the cost of the optional
redemption provision, unamortized debt issuance costs, and
unamortized discount associated with the $550 million of 6.250%
2017 Senior Notes redeemed in Q4 FY15, as well as the related
unamortized interest rate hedge loss ($2.0M), which was recorded
in interest expense.
(5) Represents the incremental benefit related to
additional domestic manufacturing deductions to be claimed in our
U.S. consolidated tax returns for FY10 through FY14 and through Q3
FY15.
                                                                                                                                                                                                                  
                                                                                                         Year Ended                                            
                                                                                  -----------------------------------------------------------------------------------------------
                                                                                                 Sep 27,                                Sep 28,                                                 Change
                                                                                                  2015                                                      2014
                                                                                  ----------------------------------                        ----------------------------------                        ------------------------------
Consolidated
------------------------------------------------------------
Operating income, as reported (GAAP)                                                    $ 3,601.0                                                 $ 3,081.1                                                 16.9 %
Litigation credit                                                                  --                                                     (20.2 )
Costs from transactions in Q4 2014(1)                                              --                                                       2.4
Starbucks Japan acquisition-related items - other(2)                                         54.6                         --  
                                                                                  ------------------------------------                      ------------------------------------
Non-GAAP operating income                                                               $ 3,655.6                              $ 3,063.3                              19.3 %
                                                                                  ======= ======= ====================                      ======= ======= ====================
                                                                                                                                                                                                       
Operating margin, as reported (GAAP)                                                         18.8                    %                                 18.7                    %                              10 bps
Costs from transactions in Q4 2014(1)                                              --                                                      (0.1 )
Starbucks Japan acquisition-related items - other(2)                                          0.3                         --  
                                                                                  ------------------------------------                      ------------------------------------
Non-GAAP operating margin                                                                    19.1                    %                                 18.6                    %                              50 bps
                                                                                  ====================================                      ====================================
                                                                                                                                                                                                       
Diluted net earnings per share, as reported (GAAP)                                      $    1.82                                                 $    1.35                                                 34.8 %
Litigation credit                                                                  --                                                     (0.01 )
Net benefit from transactions in Q4 2014(3)                                        --                                                     (0.02 )
Starbucks Japan acquisition-related items - gain(4)                                         (0.26 )                                          --
Starbucks Japan acquisition-related items - other(2)                                         0.03                                            --
Debt extinguishment-related items(5)                                                         0.03                                            --
Tax benefit from domestic manufacturing deduction(6)                                        (0.04 )                                          --  
                                                                                  ------------------------------------                      ------------------------------------
Non-GAAP net earnings per share                                                         $    1.58                              $    1.33                              18.8 %
                                                                                  ======= ======= ====================                      ======= ======= ====================
                                                                                                                                                                                                       
China/Asia Pacific (CAP)
------------------------------------------------------------
Operating income, as reported (GAAP)                                                    $   500.5                                                 $   372.5                                                 34.4 %
Starbucks Japan amortization expense of acquired intangibles                                 41.0                         --  
                                                                                  ------------------------------------                      ------------------------------------
Non-GAAP operating income                                                               $   541.5                              $   372.5                              45.4 %
                                                                                  ======= ======= ====================                      ======= ======= ====================
                                                                                                                                                                                                       
Operating margin, as reported (GAAP)                                                         20.9                    %                                 33.0                    %                          (1,210 ) bps
Starbucks Japan amortization expense of acquired intangibles                                  1.7                         --  
                                                                                  ------------------------------------                      ------------------------------------
Non-GAAP operating margin                                                                    22.6                    %                                 33.0                    %                          (1,040 ) bps
                                                                                  ====================================                      ====================================
 
(1) Includes a portion of the transaction costs
incurred in Q4 FY14 related to the acquisition of Starbucks Japan
and costs related to the sale of our Australia retail operations
in Q4 FY14. The remaining majority of the impact from these
transactions is included in net interest income and other.
(2) Includes ongoing amortization expense of acquired
intangible assets and transaction and integration costs.
(3) The net benefit from transactions in Q4 FY14
relates primarily to a $0.02 gain on the sale of our Malaysia
equity method investment, partially offset by a loss on the sale
of our Australia retail operations and transaction costs incurred
in Q4 FY14 related to the acquisition of Starbucks Japan.
(4) Gain represents the fair value adjustment of
Starbucks preexisting 39.5% ownership interest in Starbucks Japan
upon acquisition.
(5) Represents the loss on extinguishment of debt
($61.1M), which is comprised of the cost of the optional
redemption provision, unamortized debt issuance costs, and
unamortized discount associated with the $550 million of 6.250%
2017 Senior Notes redeemed in Q4 FY15, as well as the related
unamortized interest rate hedge loss ($2.0M), which was recorded
in interest expense.
(6) Represents the incremental benefit related to
additional domestic manufacturing deductions to be claimed in our
U.S. consolidated tax returns for FY10 through FY14 and through Q3
FY15.
                                                                                                                                                                                                                  
                                                                                        Quarter Ended                                  
                                                                          -------------------------------------------------------------------------------
                                                                                 Dec 27,                        Dec 28,
                                                                                  2015                                              2014
Consolidated                                                                   (Projected)                                      (As Reported)                                        Change
----------------------------------------------------                      --------------------                      ----------------------------------                        --------------------
Diluted net earnings per share (GAAP)                                            $0.43 - $0.44                            $    0.65                                                  (34%) - (32%)
Starbucks Japan acquisition-related items - gain(1)                             --                                (0.26 )
Starbucks Japan acquisition-related items - other(2)                                      0.01                                 0.01                         
                                                                          --------------------                      ------------------------------------                      --------------------
Non-GAAP net earnings per share                                                  $0.44 - $0.45                            $    0.40                                   10% - 13%
                                                                          ====================                      ======= ======= ====================
                                                                               
                                                                          -------------------- -------------------- -------------------------------------
                                                                                                            Year Ended
                                                                          -------------------------------------------------------------------------------
                                                                                 Oct 2,                                            Sep 27,
                                                                                  2016                                              2015
Consolidated                                                                   (Projected                                       (As Reported                                         Change
                                                                                53-weeks)                                         52-weeks)
----------------------------------------------------                      --------------------                      ----------------------------------                        --------------------
Diluted net earnings per share (GAAP)                                            $1.84 - $1.86                            $    1.82                                                        1% - 2%
Starbucks Japan acquisition-related items - gain(1)                             --                                (0.26 )
Starbucks Japan acquisition-related items - other(2)                                      0.03                                 0.03
Debt extinguishment-related items(3)                                            --                                 0.03
Tax benefit from domestic manufacturing deduction(4)                            --                                (0.04 )                                          
                                                                          --------------------                      ------------------------------------                      --------------------
Non-GAAP net earnings per share                                                  $1.87 - $1.89                            $    1.58                                   18% - 20%
                                                                          ====================                      ======= ======= ====================
                                                                                                                                                                               
(1) Gain represents the fair value adjustment of
Starbucks preexisting 39.5% ownership interest in Starbucks Japan
upon acquisition.
(2) Includes ongoing amortization expense of acquired
intangible assets and transaction and integration costs, such as
incremental IT and compensation-related costs associated with the
acquisition.
(3) Represents the loss on extinguishment of debt
($61.1M), which is comprised of the cost of the optional
redemption provision, unamortized debt issuance costs, and
unamortized discount associated with the $550 million of 6.250%
2017 Senior Notes redeemed in Q4 FY15, as well as the related
unamortized interest rate hedge loss ($2.0M), which was recorded
in interest expense.
(4) Represents the incremental benefit related to
additional domestic manufacturing deductions to be claimed in our
U.S. consolidated tax returns for FY10 through FY14 and through Q3
FY15.
 

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20151029006585r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20151029006585/en/

SOURCE: Starbucks Corporation

Starbucks Contact, Investor Relations: 
JoAnn DeGrande, 206-318-7118 
investorrelations@starbucks.com 
or 
Starbucks Contact, Media: 
Alisha Damodaran, 206-318-7100 
press@starbucks.com


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