SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.


Shares Outstanding as of ~~July 21, 2021~~January 26, 2022
~~1,179.1~~1,150.3 million

STARBUCKS CORPORATION

PART I — FINANCIAL INFORMATION

Item 1.Financial Statements

STARBUCKS CORPORATION

(in millions, except per share data)

(unaudited)


		Quarter Ended				Three Quarters Ended					Quarter Ended
		Jun 27, 2021		Jun 28, 2020		Jun 27, 2021		Jun 28, 2020			Jan 2, 2022		Dec 27, 2020
Net revenues:	Net revenues:									Net revenues:
Company-operated stores	Company-operated stores	$	6,363.1	$	3,444.4	$	17,742.8	$	13,991.0	Company-operated stores	$	6,722.4	$	5,726.5
Licensed stores	Licensed stores	680.2		300.5		1,889.0		1,782.4		Licensed stores	850.8		613.8
Other	Other	453.2		477.2		1,282.1		1,541.5		Other	477.2		409.1
Total net revenues	Total net revenues	7,496.5		4,222.1		20,913.9		17,314.9		Total net revenues	8,050.4		6,749.4
Product and distribution costs	Product and distribution costs	2,206.0		1,484.0		6,247.5		5,718.2		Product and distribution costs	2,526.9		2,049.1
Store operating expenses	Store operating expenses	2,966.9		2,537.8		8,657.6		8,080.7		Store operating expenses	3,400.0		2,867.3
Other operating expenses	Other operating expenses	71.4		133.6		250.8		330.3		Other operating expenses	101.7		91.8
Depreciation and amortization expenses	Depreciation and amortization expenses	354.3		361.0		1,087.0		1,068.3		Depreciation and amortization expenses	366.0		366.1
General and administrative expenses	General and administrative expenses	494.9		399.9		1,431.4		1,240.6		General and administrative expenses	525.8		472.1
Restructuring and impairments	Restructuring and impairments	19.8		78.1		115.0		83.7		Restructuring and impairments	(7.5)		72.2
Total operating expenses	Total operating expenses	6,113.3		4,994.4		17,789.3		16,521.8		Total operating expenses	6,912.9		5,918.6
Income from equity investees	Income from equity investees	105.5		68.4		265.3		210.3		Income from equity investees	40.3		82.7
Operating income/(loss)		1,488.7		(703.9)		3,389.9		1,003.4
Operating income										Operating income	1,177.8		913.5

Interest income and other, net	Interest income and other, net	36.0		12.7		68.6		30.7		Interest income and other, net	(0.1)		15.5
Interest expense	Interest expense	(113.4)		(120.8)		(349.2)		(312.1)		Interest expense	(115.3)		(120.7)
Earnings/(loss) before income taxes		1,411.3		(812.0)		3,109.3		722.0
Income tax expense/(benefit)		257.1		(133.9)		673.6		190.0
Net earnings/(loss) including noncontrolling interests		1,154.2		(678.1)		2,435.7		532.0
Net earnings/(loss) attributable to noncontrolling interests		0.8		0.3		0.8		(3.7)
Net earnings/(loss) attributable to Starbucks		$	1,153.4	$	(678.4)	$	2,434.9	$	535.7
Earnings/(loss) per share - basic		$	0.98	$	(0.58)	$	2.07	$	0.46
Earnings/(loss) per share - diluted		$	0.97	$	(0.58)	$	2.06	$	0.45
Earnings before income taxes										Earnings before income taxes	1,062.4		808.3
Income tax expense										Income tax expense	246.3		186.1
Net earnings including noncontrolling interests										Net earnings including noncontrolling interests	816.1		622.2
Net earnings attributable to noncontrolling interests										Net earnings attributable to noncontrolling interests	0.2		—
Net earnings attributable to Starbucks										Net earnings attributable to Starbucks	$	815.9	$	622.2
Earnings per share - basic										Earnings per share - basic	$	0.70	$	0.53
Earnings per share - diluted										Earnings per share - diluted	$	0.69	$	0.53
Weighted average shares outstanding:	Weighted average shares outstanding:									Weighted average shares outstanding:
Basic	Basic	1,178.5		1,168.5		1,177.0		1,173.6		Basic	1,169.6		1,175.0
Diluted	Diluted	1,186.2		1,168.5		1,184.7		1,182.7		Diluted	1,176.6		1,183.0

See Notes to Consolidated Financial Statements.

STARBUCKS CORPORATION

(in millions, unaudited)
Quarter Ended Three Quarters Ended
Jun 27,
2021 Jun 28,
2020 Jun 27,
2021 Jun 28,
2020
Net earnings/(loss) including noncontrolling interests $ 1,154.2 $ (678.1) $ 2,435.7 $ 532.0
Other comprehensive income/(loss), net of tax:
Unrealized holding gains/(losses) on available-for-sale debt securities (0.1) 5.1 (3.1) 8.2
Tax (expense)/benefit 0 (1.1) 0.6 (1.8)
Unrealized gains/(losses) on cash flow hedging instruments 34.0 (28.6) 138.9 (124.1)
Tax (expense)/benefit (1.1) 6.3 (27.9) 30.9
Unrealized gains/(losses) on net investment hedging instruments 32.4 (24.6) 49.9 56.7
Tax (expense)/benefit (8.2) 6.2 (12.7) (14.4)
Translation adjustment and other 40.2 29.0 195.5 25.2
Tax (expense)/benefit 0 0 2.2 1.5
Reclassification adjustment for net (gains)/losses realized in net earnings for available-for-sale debt securities, hedging instruments, and translation adjustment (1.6) (0.9) (13.1) (18.0)
Tax expense/(benefit) 1.0 0.5 4.6 4.4
Other comprehensive income/(loss) 96.6 (8.1) 334.9 (31.4)
Comprehensive income/(loss) including noncontrolling interests 1,250.8 (686.2) 2,770.6 500.6
Comprehensive income/(loss) attributable to noncontrolling interests 0.8 0.3 0.8 (3.7)
Comprehensive income/(loss) attributable to Starbucks $ 1,250.0 $ (686.5) $ 2,769.8 $ 504.3


	Quarter Ended
	Jan 2, 2022		Dec 27, 2020
Net earnings including noncontrolling interests	$	816.1	$	622.2
Other comprehensive income/(loss), net of tax:
Unrealized holding gains/(losses) on available-for-sale debt securities	(3.4)		(0.5)
Tax (expense)/benefit	0.8		0.1
Unrealized gains/(losses) on cash flow hedging instruments	88.7		7.7
Tax (expense)/benefit	(11.8)		(2.9)
Unrealized gains/(losses) on net investment hedging instruments	41.5		(30.2)
Tax (expense)/benefit	(10.5)		7.6
Translation adjustment and other	14.2		238.7
Tax (expense)/benefit	—		—
Reclassification adjustment for net (gains)/losses realized in net earnings for available-for-sale debt securities, hedging instruments, and translation adjustment	(16.1)		(3.6)
Tax expense/(benefit)	2.9		1.8
Other comprehensive income	106.3		218.7
Comprehensive income including noncontrolling interests	922.4		840.9
Comprehensive income attributable to noncontrolling interests	0.2		—
Comprehensive income attributable to Starbucks	$	922.2	$	840.9

See Notes to Consolidated Financial Statements.

STARBUCKS CORPORATION

(in millions, except per share data)

(unaudited)


		Jun 27, 2021		Sep 27, 2020			Jan 2, 2022		Oct 3, 2021
ASSETS	ASSETS					ASSETS
Current assets:	Current assets:					Current assets:
Cash and cash equivalents	Cash and cash equivalents	$	4,753.1	$	4,350.9	Cash and cash equivalents	$	3,969.4	$	6,455.7
Short-term investments	Short-term investments	153.6		281.2		Short-term investments	87.4		162.2
Accounts receivable, net	Accounts receivable, net	911.2		883.4		Accounts receivable, net	1,031.1		940.0
Inventories	Inventories	1,548.2		1,551.4		Inventories	1,637.1		1,603.9
Prepaid expenses and other current assets	Prepaid expenses and other current assets	565.6		739.5		Prepaid expenses and other current assets	530.1		594.6
Total current assets	Total current assets	7,931.7		7,806.4		Total current assets	7,255.1		9,756.4
Long-term investments	Long-term investments	285.9		206.1		Long-term investments	299.6		281.7
Equity investments	Equity investments	535.3		478.7		Equity investments	251.9		268.5
Property, plant and equipment, net	Property, plant and equipment, net	6,151.4		6,241.4		Property, plant and equipment, net	6,398.0		6,369.5
Operating lease, right-of-use asset	Operating lease, right-of-use asset	8,065.2		8,134.1		Operating lease, right-of-use asset	8,203.4		8,236.0
Deferred income taxes, net	Deferred income taxes, net	1,851.0		1,789.9		Deferred income taxes, net	1,859.7		1,874.8
Other long-term assets	Other long-term assets	586.3		568.6		Other long-term assets	588.0		578.5
Other intangible assets	Other intangible assets	398.0		552.1		Other intangible assets	302.5		349.9
Goodwill	Goodwill	3,672.0		3,597.2		Goodwill	3,675.7		3,677.3
TOTAL ASSETS	TOTAL ASSETS	$	29,476.8	$	29,374.5	TOTAL ASSETS	$	28,833.9	$	31,392.6
LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)	LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)					LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)
Current liabilities:	Current liabilities:					Current liabilities:
Accounts payable	Accounts payable	$	1,127.0	$	997.9	Accounts payable	$	1,289.4	$	1,211.6
Accrued liabilities	Accrued liabilities	1,791.4		1,160.7		Accrued liabilities	2,444.3		2,321.2
Accrued payroll and benefits	Accrued payroll and benefits	741.0		696.0		Accrued payroll and benefits	664.1		772.3
Income taxes payable		204.8		98.2

Current portion of operating lease liability	Current portion of operating lease liability	1,308.4		1,248.8		Current portion of operating lease liability	1,253.3		1,251.3
Stored value card liability and current portion of deferred revenue	Stored value card liability and current portion of deferred revenue	1,628.3		1,456.5		Stored value card liability and current portion of deferred revenue	2,070.7		1,596.1
Short-term debt	Short-term debt	0		438.8		Short-term debt	200.0		—
Current portion of long-term debt	Current portion of long-term debt	998.9		1,249.9		Current portion of long-term debt	999.3		998.9
Total current liabilities	Total current liabilities	7,799.8		7,346.8		Total current liabilities	8,921.1		8,151.4
Long-term debt	Long-term debt	13,619.2		14,659.6		Long-term debt	13,586.3		13,616.9
Operating lease liability	Operating lease liability	7,597.8		7,661.7		Operating lease liability	7,708.0		7,738.0
Deferred revenue	Deferred revenue	6,491.4		6,598.5		Deferred revenue	6,447.7		6,463.0
Other long-term liabilities	Other long-term liabilities	762.9		907.3		Other long-term liabilities	621.1		737.8
Total liabilities	Total liabilities	36,271.1		37,173.9		Total liabilities	37,284.2		36,707.1
Shareholders' deficit:	Shareholders' deficit:					Shareholders' deficit:
Common stock ($0.001 par value) — authorized, 2,400.0 shares; issued and outstanding, 1,179.0 and 1,173.3 shares, respectively		1.2		1.2
Common stock ($0.001 par value) — authorized, 2,400.0 shares; issued and outstanding, 1,151.6 and 1,180.0 shares, respectively						Common stock ($0.001 par value) — authorized, 2,400.0 shares; issued and outstanding, 1,151.6 and 1,180.0 shares, respectively	1.2		1.2
Additional paid-in capital	Additional paid-in capital	729.3		373.9		Additional paid-in capital	41.1		846.1
Retained deficit	Retained deficit	(7,501.6)		(7,815.6)		Retained deficit	(8,753.0)		(6,315.7)
Accumulated other comprehensive loss		(29.7)		(364.6)
Accumulated other comprehensive income						Accumulated other comprehensive income	253.5		147.2
Total shareholders’ deficit	Total shareholders’ deficit	(6,800.8)		(7,805.1)		Total shareholders’ deficit	(8,457.2)		(5,321.2)
Noncontrolling interests	Noncontrolling interests	6.5		5.7		Noncontrolling interests	6.9		6.7
Total deficit	Total deficit	(6,794.3)		(7,799.4)		Total deficit	(8,450.3)		(5,314.5)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)	TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)	$	29,476.8	$	29,374.5	TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)	$	28,833.9	$	31,392.6

See Notes to Consolidated Financial Statements.

STARBUCKS CORPORATION

(in millions, unaudited)


		Three Quarters Ended					Quarter Ended
		Jun 27, 2021		Jun 28, 2020			Jan 2, 2022		Dec 27, 2020
OPERATING ACTIVITIES:	OPERATING ACTIVITIES:					OPERATING ACTIVITIES:
Net earnings including noncontrolling interests	Net earnings including noncontrolling interests	$	2,435.7	$	532.0	Net earnings including noncontrolling interests	$	816.1	$	622.2
Adjustments to reconcile net earnings to net cash provided by operating activities:	Adjustments to reconcile net earnings to net cash provided by operating activities:					Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	Depreciation and amortization	1,146.2		1,124.0		Depreciation and amortization	386.4		388.4
Deferred income taxes, net	Deferred income taxes, net	(113.2)		20.0		Deferred income taxes, net	(0.3)		(6.1)
Income earned from equity method investees	Income earned from equity method investees	(238.3)		(182.3)		Income earned from equity method investees	(46.6)		(69.0)
Distributions received from equity method investees	Distributions received from equity method investees	226.7		165.6		Distributions received from equity method investees	44.9		77.2

Stock-based compensation	Stock-based compensation	255.3		188.0		Stock-based compensation	95.8		99.3

Non-cash lease costs	Non-cash lease costs	931.7		902.4		Non-cash lease costs	330.4		308.3
Loss on retirement and impairment of assets	Loss on retirement and impairment of assets	204.7		124.6		Loss on retirement and impairment of assets	50.7		132.6
Other	Other	(6.8)		63.7		Other	(4.9)		(10.2)
Cash provided by/(used in) changes in operating assets and liabilities:	Cash provided by/(used in) changes in operating assets and liabilities:					Cash provided by/(used in) changes in operating assets and liabilities:
Accounts receivable	Accounts receivable	(13.1)		13.4		Accounts receivable	(91.6)		19.6
Inventories	Inventories	8.4		(51.7)		Inventories	(36.0)		90.1
Prepaid expenses and other current assets	Prepaid expenses and other current assets	216.8		(492.1)		Prepaid expenses and other current assets	64.6		5.2
Income taxes payable		128.9		(1,224.5)

Accounts payable	Accounts payable	108.2		(320.3)		Accounts payable	84.0		24.8
Deferred revenue	Deferred revenue	52.4		92.0		Deferred revenue	461.3		398.9
Operating lease liability	Operating lease liability	(1,029.8)		(918.2)		Operating lease liability	(363.3)		(314.8)
Other operating assets and liabilities	Other operating assets and liabilities	154.6		70.5		Other operating assets and liabilities	79.4		69.2
Net cash provided by operating activities	Net cash provided by operating activities	4,468.4		107.1		Net cash provided by operating activities	1,870.9		1,835.7
INVESTING ACTIVITIES:	INVESTING ACTIVITIES:					INVESTING ACTIVITIES:
Purchases of investments	Purchases of investments	(367.3)		(297.4)		Purchases of investments	(61.0)		(135.5)
Sales of investments	Sales of investments	130.4		133.5		Sales of investments	72.6		91.2
Maturities and calls of investments	Maturities and calls of investments	298.7		10.0		Maturities and calls of investments	45.6		113.7

Additions to property, plant and equipment	Additions to property, plant and equipment	(985.7)		(1,138.4)		Additions to property, plant and equipment	(416.8)		(324.2)

Other	Other	(62.3)		(39.4)		Other	(41.4)		(17.7)
Net cash used in investing activities	Net cash used in investing activities	(986.2)		(1,331.7)		Net cash used in investing activities	(401.0)		(272.5)
FINANCING ACTIVITIES:	FINANCING ACTIVITIES:					FINANCING ACTIVITIES:
Repayments of commercial paper		(296.5)		0
Proceeds from issuance of commercial paper						Proceeds from issuance of commercial paper	200.0		—
Net proceeds from issuance of short-term debt	Net proceeds from issuance of short-term debt	215.6		1,157.2		Net proceeds from issuance of short-term debt	—		192.9
Repayments of short-term debt	Repayments of short-term debt	(346.2)		(220.7)		Repayments of short-term debt	—		(144.7)
Proceeds from issuance of long-term debt		0		4,727.6

Repayments of long-term debt	Repayments of long-term debt	(1,250.0)		0		Repayments of long-term debt	—		(500.0)

Proceeds from issuance of common stock	Proceeds from issuance of common stock	191.6		98.9		Proceeds from issuance of common stock	41.3		102.8
Cash dividends paid	Cash dividends paid	(1,588.2)		(1,444.2)		Cash dividends paid	(576.0)		(528.2)
Repurchase of common stock	Repurchase of common stock	0		(1,698.9)		Repurchase of common stock	(3,520.9)		—
Minimum tax withholdings on share-based awards	Minimum tax withholdings on share-based awards	(94.2)		(89.1)		Minimum tax withholdings on share-based awards	(113.6)		(88.6)
Other		0		(37.8)
Net cash provided by/(used in) financing activities		(3,167.9)		2,493.0

Net cash used in financing activities						Net cash used in financing activities	(3,969.2)		(965.8)
Effect of exchange rate changes on cash and cash equivalents	Effect of exchange rate changes on cash and cash equivalents	87.9		10.9		Effect of exchange rate changes on cash and cash equivalents	13.0		79.8
Net increase in cash and cash equivalents		402.2		1,279.3
Net increase/(decrease) in cash and cash equivalents						Net increase/(decrease) in cash and cash equivalents	(2,486.3)		677.2
CASH AND CASH EQUIVALENTS:	CASH AND CASH EQUIVALENTS:					CASH AND CASH EQUIVALENTS:
Beginning of period	Beginning of period	4,350.9		2,686.6		Beginning of period	6,455.7		4,350.9
End of period	End of period	$	4,753.1	$	3,965.9	End of period	$	3,969.4	$	5,028.1
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:	SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:					SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:	Cash paid during the period for:					Cash paid during the period for:
Interest, net of capitalized interest	Interest, net of capitalized interest	$	373.6	$	274.3	Interest, net of capitalized interest	$	108.3	$	130.0
Income taxes	Income taxes	$	407.9	$	1,691.1	Income taxes	$	161.4	$	109.4

See Notes to Consolidated Financial Statements.

STARBUCKS CORPORATION

For the Quarters Ended ~~June~~January 2, 2022 and December 27, ~~2021 and June 28,~~ 2020

(in millions, except per share data, unaudited)
Common Stock Additional Paid-in Capital Retained
Earnings/(Deficit) Accumulated
Other
Comprehensive
Income/(Loss) Shareholders’
Equity/(Deficit) Noncontrolling
Interests Total
Shares Amount
Balance, March 28, 2021 1,177.9 $ 1.2 $ 595.4 $ (8,124.3) $ (126.3) $ (7,654.0) $ 5.7 $ (7,648.3)
Net earnings — 0 0 1,153.4 0 1,153.4 0.8 1,154.2
Other comprehensive income/(loss) — 0 0 0 96.6 96.6 0 96.6
Stock-based compensation expense — 0 80.9 0 0 80.9 0 80.9
Exercise of stock options/vesting of RSUs 1.0 0 41.7 0 0 41.7 0 41.7
Sale of common stock 0.1 0 11.3 0 0 11.3 0 11.3
Cash dividends declared, $0.45 per share — 0 0 (530.7) 0 (530.7) 0 (530.7)
Balance, June 27, 2021 1,179.0 $ 1.2 $ 729.3 $ (7,501.6) $ (29.7) $ (6,800.8) $ 6.5 $ (6,794.3)
Balance, March 29, 2020 1,168.1 $ 1.2 $ 41.1 $ (7,050.6) $ (521.8) $ (7,530.1) $ (2.8) $ (7,532.9)
Net earnings/(loss) — 0 0 (678.4) 0 (678.4) 0.3 (678.1)
Other comprehensive income/(loss) — 0 0 0 (8.1) (8.1) 0 (8.1)
Stock-based compensation expense — 0 42.3 0 0 42.3 0 42.3
Exercise of stock options/vesting of RSUs 0.6 0 22.2 0 0 22.2 0 22.2
Sale of common stock 0.2 0 9.8 0 0 9.8 0 9.8
Cash dividends declared, $0.41 per share — 0 0 (479.3) 0 (479.3) (0.2) (479.5)
Balance, June 28, 2020 1,168.9 $ 1.2 $ 115.4 $ (8,208.3) $ (529.9) $ (8,621.6) $ (2.7) $ (8,624.3)


	Common Stock			Additional Paid-in Capital		Retained Earnings/(Deficit)		Accumulated Other Comprehensive Income/(Loss)		Shareholders’ Equity/(Deficit)		Noncontrolling Interests		Total
	Shares	Amount
Balance, October 3, 2021	1,180.0	$	1.2	$	846.1	$	(6,315.7)	$	147.2	$	(5,321.2)	$	6.7	$	(5,314.5)

Net earnings	—	—		—		815.9		—		815.9		0.2		816.1
Other comprehensive income	—	—		—		—		106.3		106.3		—		106.3
Stock-based compensation expense	—	—		97.1		—		—		97.1		—		97.1
Exercise of stock options/vesting of RSUs	2.6	—		(84.1)		—		—		(84.1)		—		(84.1)
Sale of common stock	0.1	—		11.8		—		—		11.8		—		11.8
Repurchase of common stock	(31.1)	—		(829.8)		(2,691.1)		—		(3,520.9)		—		(3,520.9)
Cash dividends declared, $0.49 per share	—	—		—		(562.1)		—		(562.1)		—		(562.1)

Balance, January 2, 2022	1,151.6	$	1.2	$	41.1	$	(8,753.0)	$	253.5	$	(8,457.2)	$	6.9	$	(8,450.3)

Balance, September 27, 2020	1,173.3	$	1.2	$	373.9	$	(7,815.6)	$	(364.6)	$	(7,805.1)	$	5.7	$	(7,799.4)
Cumulative effect of adoption of new accounting guidance	—	—		—		(2.2)		—		(2.2)		—		(2.2)
Net earnings	—	—		—		622.2		—		622.2		—		622.2
Other comprehensive income	—	—		—		—		218.7		218.7		—		218.7
Stock-based compensation expense	—	—		100.5		—		—		100.5		—		100.5
Exercise of stock options/vesting of RSUs	3.8	—		4.0		—		—		4.0		—		4.0
Sale of common stock	0.1	—		10.2		—		—		10.2		—		10.2

Cash dividends declared, $0.90 per share	—	—		—		(1,058.0)		—		(1,058.0)		—		(1,058.0)

Balance, December 27, 2020	1,177.2	$	1.2	$	488.6	$	(8,253.6)	$	(145.9)	$	(7,909.7)	$	5.7	$	(7,904.0)

See Notes to Consolidated Financial Statements.

~~For the Three Quarters Ended June 27, 2021 and June 28, 2020~~

~~(in millions, except per share data, unaudited)~~
Common Stock Additional Paid-in Capital Retained
Earnings/(Deficit) Accumulated
Other
Comprehensive
Income/(Loss) Shareholders’
Equity/(Deficit) Noncontrolling
Interests Total
Shares Amount
Balance, September 27, 2020 1,173.3 $ 1.2 $ 373.9 $ (7,815.6) $ (364.6) $ (7,805.1) $ 5.7 $ (7,799.4)
Cumulative effect of adoption of new accounting guidance — 0 0 (2.2) 0 (2.2) 0 (2.2)
Net earnings — 0 0 2,434.9 0 2,434.9 0.8 2,435.7
Other comprehensive income/(loss) — 0 0 0 334.9 334.9 0 334.9
Stock-based compensation expense — 0 258.1 0 0 258.1 0 258.1
Exercise of stock options/vesting of RSUs 5.4 0 65.7 0 0 65.7 0 65.7
Sale of common stock 0.3 0 31.6 0 0 31.6 0 31.6
Cash dividends declared, $1.80 per share — 0 0 (2,118.7) 0 (2,118.7) 0 (2,118.7)
Balance, June 27, 2021 1,179.0 $ 1.2 $ 729.3 $ (7,501.6) $ (29.7) $ (6,800.8) $ 6.5 $ (6,794.3)
Balance, September 29, 2019 1,184.6 $ 1.2 $ 41.1 $ (5,771.2) $ (503.3) $ (6,232.2) $ 1.2 $ (6,231.0)
Cumulative effect of adoption of new accounting guidance — 0 0 12.5 4.8 17.3 0 17.3
Net earnings/(loss) — 0 0 535.7 0 535.7 (3.7) 532.0
Other comprehensive income/(loss) — 0 0 0 (31.4) (31.4) 0 (31.4)
Stock-based compensation expense — 0 190.7 0 0 190.7 0 190.7
Exercise of stock options/vesting of RSUs 4.2 0 (18.3) 0 0 (18.3) 0 (18.3)
Sale of common stock 0.4 0 28.3 0 0 28.3 0 28.3
Repurchase of common stock (20.3) 0 (126.4) (1,548.6) 0 (1,675.0) 0 (1,675.0)
Cash dividends declared, $1.23 per share — 0 0 (1,436.7) 0 (1,436.7) (0.2) (1,436.9)
Balance, June 28, 2020 1,168.9 $ 1.2 $ 115.4 $ (8,208.3) $ (529.9) $ (8,621.6) $ (2.7) $ (8,624.3)

~~See Notes to Consolidated Financial Statements.~~

STARBUCKS CORPORATION

Note 1: Summary of Significant Accounting Policies and Estimates

Financial Statement Preparation

The unaudited consolidated financial statements as of ~~June 27, 2021,~~January 2, 2022, and for the ~~quarter and three~~ quarters ended ~~June~~January 2, 2022 and December 27, ~~2021 and June 28,~~ 2020, have been prepared by Starbucks Corporation under the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, the financial information for the ~~quarter and three~~ quarters ended ~~June~~January 2, 2022 and December 27, ~~2021 and June 28,~~ 2020 reflects all adjustments and accruals, which are of a normal recurring nature, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods. In this Quarterly Report on Form 10-Q (“10-Q”), Starbucks Corporation is referred to as “Starbucks,” the “Company,” “we,” “us” or “our.”

Segment information is prepared on the same basis that our management reviews financial information for operational decision-making purposes. In the fourth quarter of fiscal 2021, certain changes were made to our management team, and our operating segment reporting structure was realigned as a result. We realigned our fully licensed Latin America and Caribbean markets from our Americas operating segment to our International operating segment. We renamed the Americas operating segment to the North America operating segment, since it is comprised of our company-operated and licensed stores in the U.S. and Canada. We also made certain other immaterial changes between our International operating segment and Corporate and Other. Certain prior period information for our North America and International operating segments and our Corporate and Other reportable segment has been reclassified to conform to the current year presentation. There was no impact on consolidated net revenues, total operating expenses, operating income or net earnings per share as a result of these changes.

Certain prior period information on the consolidated balance sheets and consolidated statements of cash flows have been reclassified to conform to the current presentation.

The financial information as of ~~September 27, 2020~~October 3, 2021 is derived from our audited consolidated financial statements and notes for the fiscal year ended ~~September 27, 2020~~October 3, 2021 (“fiscal ~~2020”~~2021”) included in Item 8 in the Fiscal ~~2020~~2021 Annual Report on Form 10-K (“10-K”). The information included in this 10-Q should be read in conjunction with the footnotes and management’s discussion and analysis of the consolidated financial statements in the 10-K.

The results of operations for the quarter ~~and three quarters~~ ended ~~June 27, 2021~~January 2, 2022 are not necessarily indicative of the results of operations that may be achieved for the entire fiscal year ending October ~~3, 2021~~2, 2022 (“fiscal ~~2021”~~2022”). ~~Additionally, our 2021~~Our fiscal year ~~will include~~ends on the Sunday closest to September 30. Our fiscal 2022 year includes 52 weeks while our fiscal 2021 year included 53 weeks, with the 53rd week falling in the fourth quarter of fiscal ~~quarter.~~2021.

The novel coronavirus, known as the global COVID-19 pandemic, was first identified in December 2019 before spreading to markets where we have company-operated or licensed stores. We have since established the necessary protocols to operate safely, and our businesses demonstrated powerful momentum beyond recovery from the COVID-19 ~~pandemic, despite certain markets in~~pandemic. However, the Omicron variant quickly spread during the quarter, and our ~~International segment continuing~~operations continued to experience pandemic-related restrictions, ~~during~~impacting sales in both our North America and International segments, primarily China. Impacts also included higher than anticipated costs in North America due to staffing shortages in our supply chain and retail stores. We continue to monitor the ~~quarter. As~~COVID-19 pandemic and its effect on our business and results of operations; however, we cannot predict the duration, scope or severity of the ~~end~~COVID-19 pandemic or its future impact on our business, results of ~~the third quarter of fiscal 2021, nearly all our company-operated~~operations, cash flows and ~~licensed stores had re-opened.~~

~~Segment information is prepared on the same basis that our management reviews~~ financial information for operational decision-making purposes. Effective June 28, 2021, certain changes were made to our management team, and our operating segment reporting structure was re-aligned in the fourth quarter of fiscal 2021 as a result. Specifically, we realigned our fully licensed Latin America and Caribbean markets from our Americas operating segment to our International operating segment. Additionally, we renamed the Americas operating segment to the North America operating segment, since it is comprised of our company-operated and licensed stores in the U.S. and Canada. The financial information presented herein does not reflect this realignment as these changes were not effective until the fourth quarter of fiscal 2021 and our ceo, who is our Chief Operating Decision Maker, continued to manage the business under the existing segment structure through the end of the third quarter of fiscal 2021.condition.

Government Subsidies

~~On March 27, 2020,~~In response to the COVID-19 pandemic, certain governments have provided subsidies and assistance to companies. The most substantial of these were the U.S. ~~government enacted the~~ Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”)~~, which among other things, provides employer payroll tax credits for wages paid to employees who are unable to work during the COVID-19 pandemic~~ and options to defer payroll tax payments for a limited period. Based on our evaluation of the CARES Act, we qualify for certain employer payroll tax credits as well as the deferral of payroll tax payments in the future. Additionally, the Canadian government enacted the Canada Emergency Wage Subsidy, ~~to help employers offset a portion~~which were no longer applicable in late fiscal 2021. However, during the quarter ended January 2, 2022, an international government subsidy reduced our store operating expenses by $11.5 million on our consolidated statements of ~~their employee wages for a limited period. We elected to treat qualified government subsidies from the U.S., Canada and other governments as offsets to the related operating expenses.~~earnings. During the quarter ~~and three quarters~~ ended ~~June~~December 27, ~~2021,~~2020, qualified payroll and other credits reduced our store operating expenses by ~~$56.4~~$19.8 million ~~and $173.7 million, respectively,~~ on our consolidated statements of earnings. During the quarter and three quarters ended June 28, 2020, the qualified payroll credits reduced our store operating expenses by $266.0 million and $301.0 million on our consolidated statements of earnings, respectively. After netting the qualified credits against our payable, a receivable of ~~$161.7~~$98.8 million and ~~$155.1~~$172.4 million was included in prepaid expenses and other current assets as of ~~June 27,~~January 2, 2022 and October 3, 2021, ~~and September 27, 2020,~~ respectively. ~~During the three quarters ended June 27, 2021, we~~As of January 2, 2022, deferred ~~$81.7 million of qualified~~ payroll tax ~~payments. During the quarter ended June 27, 2021, there~~payments of $116.5 million were ~~0 similar deferrals.~~included in accrued liabilities on our consolidated balance sheets. As of ~~June 27,~~October 3, 2021, deferred payroll tax payments of $116.4 million were included in both accrued liabilities and other long-term liabilities ~~respectively, on our consolidated balance sheets. As of September 27, 2020, deferred payroll tax payments of $151.0 million were included in other long-term liabilities~~ on our consolidated balance sheets.

In fiscal ~~2020,~~2021, we ~~announced a~~substantially completed our plan to optimize our North America store portfolio, primarily in dense metropolitan markets by developing new store formats to better cater to changing customer tastes and preferences. As of June 27, 2021, we expect the total number of closures to be approximately 820 stores in the U.S. and Canada and have closed or identified for closure approximately 790 stores under our restructuring plan. As a result,

we recorded approximately ~~$19.8 million and $115.0~~$72.2 million to restructuring and impairments on our consolidated statements of earnings during the quarter ~~and three quarters~~ ended ~~June~~December 27, ~~2021, respectively.~~2020. Of ~~these totals, $7.8 million and $59.0~~this total, $42.6 million related to the impairment of store assets for which either a triggering event occurred and the assets were determined not to be recoverable or the store was permanently ~~closed, respectively.~~closed. During the quarter ~~and three quarters~~ ended ~~June~~December 27, ~~2021,~~2020, an additional ~~$12.2~~$29.6 million ~~and $56.2 million, respectively, were~~was associated with accelerated amortization of right-of-use (“ROU”) lease assets and other lease costs due to planned store closures prior to the end of contractual lease terms. ~~For impaired store asset groups,~~As the restructuring plan was substantially completed in fiscal 2021, we estimated the fair values using an income approach incorporating internal projections of revenue growth and operating expenses that are considered Level 3 fair value measurements, as well as applicable discount rates and market lease rates. The application of these projections and fair value measurements did not ~~have a significant impact on our final~~recognize any material restructuring and impairment ~~charges given that we plan to fully exit~~amounts during the ~~majority of these identified stores over the next 6 to 12 months.~~

quarter ended January 2, 2022. As of ~~June 27,~~January 2, 2022 and October 3, 2021, we expect total future restructuring costs, which are attributable to our Americas segment, to be approximately $20 million to $30 million. These restructuring costs primarily include accelerated amortization of ROU assets due to planned store closures prior to the end of contractual lease terms. The remaining balance includes store impairment and disposal costs not previously recorded as part of our ongoing store impairment process as well as employee termination costs. As we have previously recorded impairment charges for stores that may be identified for closure under our plans, and because store closure decisions are still subject to change, the final costs associated with these store closures may vary from these estimates. These costs will depend on the asset carrying value and remaining lease term of the specific stores identified. Future restructuring costs are expected to be incurred primarily during 2021 as stores are identified for closure or, in the case of lease exit costs, either when a store ceases operations or when a reduced lease term is reasonably certain due to expected, early lease termination.

~~Restructuring-related accrued employee termination costs included in accrued payroll and benefits on the consolidated balance sheets~~there were ~~$1.8 million and $15.2 million as of June 27, 2021 and September 27, 2020, respectively. Additionally, other accrued restructuring costs included in~~no material restructuring-related accrued liabilities on ~~the~~our consolidated balance sheets were $8.7 million as of June 27, 2021. There were 0 other accrued restructuring costs outstanding as of September 27, 2020. Cash payments relating to these liabilities were immaterial for the quarter and three quarters ended June 27, 2021.sheets.

Recently Adopted Accounting Pronouncements

In ~~June 2016,~~the first quarter of fiscal 2022, we adopted the Financial Accounting Standards Board ~~("FASB"~~(“FASB”) issued guidance related to reference rate reform. The pronouncement provides temporary optional expedients and exceptions to the current guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance and generally can be applied to applicable contract modifications through December 31, 2022. The adoption of the new guidance did not have a material impact to our financial statements.

In June 2016, the FASB issued guidance replacing the incurred loss impairment methodology with a new methodology that reflects current expected credit losses on financial assets, including receivables and available-for-sale securities. The new methodology requires entities to estimate and recognize expected credit losses each reporting period. The guidance was adopted during the first quarter of fiscal 2021 under the modified retrospective approach and resulted in a $2.2 million transition adjustment to opening shareholders' retained deficit on our consolidated statements of equity.

In March 2020, the FASB issued guidance related to reference rate reform. The pronouncement provides temporary optional expedients and exceptions to the current guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance and generally can be applied to applicable contract modifications through December 31, 2022. We are currently evaluating the impact of the transition from LIBOR to alternative reference rates but do not expect a significant impact to our consolidated financial statements.

Note 2: Derivative Financial Instruments

From time to time, we enter into designated cash flow hedges to manage the variability in cash flows due to changes in benchmark interest rates. We enter into interest rate swap agreements and treasury locks, which are synthetic forward sales of U.S. ~~treasury~~Treasury securities settled in cash based upon the difference between an agreed-upon treasury rate and the prevailing treasury rate at settlement. These agreements are cash settled at the time of the pricing of the related debt. Each derivative agreement's gain or loss is recorded in accumulated other comprehensive income (“AOCI”) and is subsequently reclassified to interest expense over the life of the related debt.

To reduce cash flow volatility from foreign currency fluctuations, we enter into forward and swap contracts to hedge portions of cash flows of anticipated intercompany royalty payments, inventory purchases, and intercompany borrowing and lending activities. The resulting gains and losses from these derivatives are recorded in AOCI and subsequently reclassified to revenue, product and distribution costs, or interest income and other, net, respectively, when the hedged exposures affect net earnings.

From time to time, we may enter into financial instruments, including, but not limited to, forward and swap contracts or foreign currency-denominated debt, to hedge the currency exposure of our net investments in certain international operations. The resulting gains and losses from these derivatives are recorded in AOCI and are subsequently reclassified to net earnings when the hedged net investment is either sold or substantially liquidated.

Foreign currency forward and swap contracts not designated as hedging instruments are used to mitigate the foreign exchange risk of certain other balance sheet items. Gains and losses from these derivatives are largely offset by the financial impact of translating foreign currency-denominated payables and ~~receivables;~~receivables, and these gains and losses are recorded in interest income and other, net.

Depending on market conditions, we may also enter into dairy forward contracts and futures contracts to hedge a portion of anticipated cash flows under our dairy purchase contracts and our forecasted dairy demand. The resulting gains or losses are recorded in AOCI and are subsequently reclassified to product and distribution costs when the hedged exposure affects net earnings.

Cash flow hedges related to anticipated transactions are designated and documented at the inception of each hedge. Cash flows from hedging transactions are classified in the same categories as the cash flows from the respective hedged items. For de-designated cash flow hedges in which the underlying transactions are no longer probable of occurring, the related accumulated derivative gains or losses are recognized in interest income and other, net on our consolidated statements of earnings. There were no significant cash flow hedge de-designations in fiscal 2021. During the second and third quarters of fiscal 2020, we de-designated certain cash flow hedges due to the global COVID-19 impacts, which resulted in the release of an insignificant net gain from AOCI to our consolidated statement of earnings.

To mitigate the price uncertainty of a portion of our future purchases, including diesel fuel and other commodities, we enter into swap contracts, futures and collars that are not designated as hedging instruments. The resulting gains and losses are recorded in interest income and other, net to help offset price fluctuations on our beverage, food, packaging and transportation costs, which are included in product and distribution costs on our consolidated statements of earnings.

Outstanding Contract/Debt Remaining Maturity

~~Table of Content~~s


	Net Gains/(Losses) Included in AOCI				Net Gains/(Losses) Expected to be Reclassified from AOCI into Earnings within 12 Months		Outstanding Contract/Debt Remaining Maturity (Months)
	Jan 2, 2022		Oct 3, 2021
Cash Flow Hedges:
Coffee	$	255.2	$	197.8	$	202.2	5
Cross-currency swaps	3.0		4.4		—		35
Dairy	3.4		(0.4)		3.4		8
Foreign currency - other	6.6		1.3		2.9		36
Interest rates	(43.6)		(44.8)		(1.4)		130
Net Investment Hedges:
Cross-currency swaps	47.6		37.9		—		93
Foreign currency	16.0		16.0		—		0
Foreign currency debt	13.5		(5.3)		—		27

Gains/(Losses) Reclassified from

Interest income and other, net(1)

(1)As a result of the global COVID-19 impacts, Starbucks discontinued cash flow hedges during the quarter ended June 28, 2020.

Interest income and other, net(1)

(1)As a result of the global COVID-19 impacts, Starbucks discontinued cash flow hedges during the quarters ended March 29, 2020 and June 28, 2020.

~~Table of Content~~s


	Quarter Ended
	Gains/(Losses) Recognized in OCI Before Reclassifications			Gains/(Losses) Reclassified from AOCI to Earnings				Location of gain/(loss)
		Jan 2, 2022		Dec 27, 2020		Jan 2, 2022				Dec 27, 2020
Cash Flow Hedges:
Coffee		$	71.5	$	12.0	$	6.5	$	0.7		Product and distribution costs

Cross-currency swaps		4.5		(3.4)		(0.8)		1.0			Interest expense
						6.9		(4.8)			Interest income and other, net
Dairy		4.6		2.5		(0.4)		2.6			Product and distribution costs

Foreign currency - other		6.9		(25.9)		2.2		—			Licensed stores revenue
						(1.5)		—			Product and distribution costs

Interest rates		1.2		22.5		(0.4)		(0.6)			Interest expense

Net Investment Hedges:
Cross-currency swaps		16.3		(16.5)		3.4		3.2			Interest expense

Foreign currency debt		25.2		(13.7)		—		—

~~Table of Content~~s


	Jan 2, 2022		Oct 3, 2021
Coffee	$	686	$	481
Cross-currency swaps	789		806
Dairy	39		53
Diesel fuel and other commodities	96		10
Foreign currency - other	1,261		1,009
Interest rate swaps	1,250		1,250

Note 3: Fair Value Measurements

There were no material transfers between levels and there was no significant activity within Level 3 instruments during the periods presented. The fair values of any financial instruments presented above exclude the impact of netting assets and liabilities when a legally enforceable master netting agreement exists.

Gross unrealized holding gains and losses on available-for-sale debt securities and marketable equity securities were not material as of ~~June 27, 2021~~January 2, 2022 and ~~September 27, 2020.~~

~~Table of Content~~s

October 3, 2021.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Assets and liabilities recognized or disclosed at fair value on the consolidated financial statements on a nonrecurring basis include items such as property, plant and equipment, ROU assets, goodwill and other intangible assets and other assets. These assets are measured at fair value if determined to be impaired. ~~During our fiscal third quarter, we recorded asset impairment charges, primarily related to restructuring efforts for our North America store portfolio. See~~

~~Note 1~~Table of Contents~~, Summary of Significant Accounting Policies, for further discussion.~~

The estimated fair value of our long-term debt based on the quoted market price (Level 2) is included at Note 7, Debt. There were no material fair value adjustments during the ~~three~~ quarters ended ~~June~~January 2, 2022 and December 27, ~~2021 and June 28,~~ 2020.

Other merchandise held for sale includes, among other items, serveware, food and tea. Inventory levels vary due to seasonality, commodity market supply and price fluctuations.

Store Operating Expenses
Quarter Ended Three Quarters Ended
Jun 27, 2021 Jun 28, 2020 Jun 27, 2021 Jun 28, 2020
Wages and benefits $ 1,750.7 $ 1,477.7 $ 5,021.8 $ 4,683.7
Occupancy costs 628.7 555.5 1,883.0 1,768.1
Other expenses 587.5 504.6 1,752.8 1,628.9
Total store operating expenses $ 2,966.9 $ 2,537.8 $ 8,657.6 $ 8,080.7

Note 6: Other Intangible Assets and Goodwill

Amortization expense for finite-lived intangible assets was ~~$50.0 million and $173.4~~$50.2 million for the quarter ended January 2, 2022 and ~~three quarters ended June 27, 2021, respectively, and $55.9 million and $164.5~~$61.2 million for the quarter ~~and three quarters~~ ended June 28, 2020, respectively. During the third quarter of fiscal 2020, we recorded a charge of $22.1 million to restructuring and impairments on our consolidated statement of earnings related to changes in branding and marketing strategy.December 27, 2020.

(1)“Other” consists of changes in the goodwill balance resulting from foreign currency translation.

~~During the third quarter~~

Table of fiscal 2021, we completed our annual goodwill impairment analysis. The results of our analysis indicated significant excess fair values over carrying values across the different reporting units, and therefore no goodwill impairment was recorded.Contents

Note 7: Debt

Revolving Credit Facility

Our $3 billion unsecured five-year revolving credit facility (the "2021 credit facility"), of which $150 million may be used for issuances of letters of credit, is currently set to mature on September 16, 2026. The 2021 credit facility is available for working capital, capital expenditures and other corporate purposes, including acquisitions and share repurchases. We have the option, subject to negotiation and agreement with the related banks, to increase the maximum commitment amount by an additional $1.0 billion.

Borrowings under the 2021 credit facility will bear interest at a variable rate based on LIBOR, and, for U.S. dollar-denominated loans under certain circumstances, a Base Rate (as defined in the 2021 credit facility), in each case plus an applicable margin. The applicable margin is based on the Company’s long-term credit ratings assigned by the Moody’s and Standard & Poor’s rating agencies. The 2021 credit facility contains alternative interest rate provisions specifying rate calculations to be used at such time LIBOR ceases to be available as a benchmark due to reference rate reform. The “Base Rate” is the highest of (i) the Federal Funds Rate (as defined in the 2021 credit facility) plus 0.025%, (ii) Bank of America’s prime rate, and (iii) the Eurocurrency Rate (as defined in the 2021 credit facility) plus 1.025%.

The 2021 credit facility contains provisions requiring us to maintain compliance with certain covenants, including a minimum fixed charge coverage ratio, which measures our ability to cover financing expenses. As of January 2, 2022, we were in compliance with all applicable covenants. No amounts were outstanding under our 2021 credit facility as of January 2, 2022 or October 3, 2021.

Short-term Debt

Under our commercial paper program, we may issue unsecured commercial paper notes up to a maximum aggregate amount outstanding at any time of $3 billion, with individual maturities that may vary but not exceed 397 days from the date of issue. Amounts outstanding under the commercial paper program are required to be backstopped by available commitments under our 2021 credit facility. The proceeds from borrowings under our commercial paper program may be used for working capital needs, capital expenditures and other corporate purposes, including, but not limited to, business expansion, payment of cash dividends on our common stock and share repurchases. As of ~~June 27, 2021,~~January 2, 2022, we had 0$200 million borrowings outstanding under the program.

Additionally, we hold the following Japanese yen-denominated credit facilities that are available for working capital needs and capital expenditures within our Japanese market:

~~Table of Content~~s

•A ¥5 billion, or ~~$45.1~~$43.4 million, credit facility is currently set to mature on December ~~30, 2021.~~31, 2022. Borrowings under ~~the~~such credit facility are subject to terms defined within the facility and will bear interest at a variable rate based on ~~TIBOR~~Tokyo Interbank Offered Rate ("TIBOR") plus an applicable margin of 0.400%.

•A ¥10 billion, or ~~$90.2~~$86.9 million, credit facility is currently set to mature on March 26, 2022. Borrowings under ~~the~~such credit facility are subject to terms defined within the facility and will bear interest at a variable rate based on TIBOR plus an applicable margin of 0.350%.

As of ~~June 27,~~January 2, 2022 and October 3, 2021, we had 0no borrowings outstanding under these Japanese yen-denominated credit facilities.

Table of Contents

Long-term Debt

Components of long-term debt including the associated interest rates and related estimated fair values by calendar maturity (in millions, except interest rates):


		Jun 27, 2021				Sep 27, 2020				Stated Interest Rate		Effective Interest Rate(1)			Jan 2, 2022				Oct 3, 2021				Stated Interest Rate		Effective Interest Rate(1)
Issuance	Issuance	Amount		Estimated Fair Value		Amount		Estimated Fair Value						Issuance	Amount		Estimated Fair Value		Amount		Estimated Fair Value
November 2020 notes(2)		$	0	$	0	$	500.0	$	501.5	2.200	%	2.228	%
February 2021 notes(2)		0		0		500.0		502.3		2.100	%	2.293	%
February 2021 notes(2)		0		0		250.0		251.1		2.100	%	1.600	%

May 2022 notes	May 2022 notes	500.0		504.6		500.0		506.5		1.300	%	1.334	%	May 2022 notes	$	500.0	$	501.7	$	500.0	$	503.1	1.300	%	1.334	%
June 2022 notes	June 2022 notes	500.0		510.1		500.0		517.5		2.700	%	2.819	%	June 2022 notes	500.0		503.2		500.0		506.7		2.700	%	2.819	%
March 2023 notes	March 2023 notes	1,000.0		1,043.1		1,000.0		1,058.8		3.100	%	3.107	%	March 2023 notes	1,000.0		1,023.6		1,000.0		1,035.9		3.100	%	3.107	%
October 2023 notes~~(3)~~(2)	October 2023 notes~~(3)~~(2)	750.0		801.0		750.0		817.5		3.850	%	2.859	%	October 2023 notes~~(3)~~(2)	750.0		782.3		750.0		794.8		3.850	%	2.859	%
March 2024 notes~~(4)~~(3)	March 2024 notes~~(4)~~(3)	766.7		768.0		806.4		794.4		0.372	%	0.462	%	March 2024 notes~~(4)~~(3)	738.6		737.4		763.8		761.0		0.372	%	0.462	%
August 2025 notes	August 2025 notes	1,250.0		1,382.7		1,250.0		1,414.5		3.800	%	3.721	%	August 2025 notes	1,250.0		1,347.1		1,250.0		1,371.5		3.800	%	3.721	%
June 2026 notes	June 2026 notes	500.0		526.6		500.0		542.6		2.450	%	2.511	%	June 2026 notes	500.0		516.2		500.0		526.4		2.450	%	2.511	%
March 2027 notes	March 2027 notes	500.0		513.9		500.0		528.9		2.000	%	2.058	%	March 2027 notes	500.0		502.2		500.0		513.0		2.000	%	2.058	%
March 2028 notes	March 2028 notes	600.0		670.0		600.0		679.5		3.500	%	3.529	%	March 2028 notes	600.0		648.4		600.0		663.2		3.500	%	3.529	%
November 2028 notes	November 2028 notes	750.0		862.7		750.0		886.0		4.000	%	3.958	%	November 2028 notes	750.0		837.3		750.0		855.9		4.000	%	3.958	%
August 2029 notes	August 2029 notes	1,000.0		1,115.5		1,000.0		1,147.1		3.550	%	3.840	%	August 2029 notes	1,000.0		1,084.0		1,000.0		1,109.9		3.550	%	3.840	%
March 2030 notes	March 2030 notes	750.0		757.0		750.0		778.0		2.250	%	3.084	%	March 2030 notes	750.0		746.6		750.0		758.6		2.250	%	3.084	%
November 2030 notes	November 2030 notes	1,250.0		1,295.1		1,250.0		1,325.9		2.550	%	2.582	%	November 2030 notes	1,250.0		1,265.0		1,250.0		1,286.9		2.550	%	2.582	%
June 2045 notes	June 2045 notes	350.0		410.0		350.0		412.4		4.300	%	4.348	%	June 2045 notes	350.0		406.0		350.0		414.1		4.300	%	4.348	%
December 2047 notes	December 2047 notes	500.0		550.2		500.0		546.6		3.750	%	3.765	%	December 2047 notes	500.0		541.6		500.0		556.5		3.750	%	3.765	%
November 2048 notes	November 2048 notes	1,000.0		1,237.5		1,000.0		1,222.8		4.500	%	4.504	%	November 2048 notes	1,000.0		1,219.7		1,000.0		1,248.6		4.500	%	4.504	%
August 2049 notes	August 2049 notes	1,000.0		1,236.1		1,000.0		1,215.5		4.450	%	4.447	%	August 2049 notes	1,000.0		1,221.9		1,000.0		1,241.0		4.450	%	4.447	%
March 2050 notes	March 2050 notes	500.0		517.7		500.0		517.1		3.350	%	3.362	%	March 2050 notes	500.0		520.2		500.0		527.5		3.350	%	3.362	%
November 2050 notes	November 2050 notes	1,250.0		1,328.0		1,250.0		1,332.2		3.500	%	3.528	%	November 2050 notes	1,250.0		1,322.3		1,250.0		1,339.5		3.500	%	3.528	%
Total	Total	14,716.7		16,029.8		16,006.4		17,498.7						Total	14,688.6		15,726.7		14,713.8		16,014.1
Aggregate debt issuance costs and unamortized premium/(discount), net	Aggregate debt issuance costs and unamortized premium/(discount), net	(123.0)				(132.5)								Aggregate debt issuance costs and unamortized premium/(discount), net	(116.5)				(119.7)
Hedge accounting fair value adjustment~~(3)~~(2)	Hedge accounting fair value adjustment~~(3)~~(2)	24.4				35.6								Hedge accounting fair value adjustment~~(3)~~(2)	13.5				21.7
Total	Total	$	14,618.1			$	15,909.5							Total	$	14,585.6			$	14,615.8

(1)Includes the effects of the amortization of any premium or discount and any gain or loss upon settlement of related treasury locks or forward-starting interest rate swaps utilized to hedge interest rate risk prior to the debt issuance.

(2)~~November 2020 and February 2021 notes were repaid in the first and second quarters of fiscal 2021, respectively.~~

~~(3)~~Amount includes the change in fair value due to changes in benchmark interest rates related to our October 2023 notes. Refer to Note 2, Derivative Financial Instruments, for additional information on our interest rate swap designated as a fair value hedge.

~~(4)~~(3)Japanese yen-denominated long-term debt.

~~Table of Content~~s

The following table summarizes our long-term debt maturities as of ~~June 27, 2021~~January 2, 2022 by fiscal year (in millions):


Fiscal Year	Fiscal Year	Total		Fiscal Year	Total

2021		$	0
2022	2022	1,000.0		2022	$	1,000.0
2023	2023	1,000.0		2023	1,000.0
2024	2024	1,516.7		2024	1,488.6
2025	2025	1,250.0		2025	1,250.0
2026				2026	500.0
Thereafter	Thereafter	9,950.0		Thereafter	9,450.0
Total	Total	$	14,716.7	Total	$	14,688.6

Note 8: Leases

~~For the quarter and three quarters ended June 27, 2021, we recognized accelerated amortization~~

Table of ROU lease assets and other lease costs of $12.2 million and $56.2 million, respectively, which were recognized within restructuring and impairments on the consolidated statements of earnings. For the quarter and three quarters ended June 28, 2020, we recognized accelerated amortization of ROU lease assets and other lease costs of $13.4 million and $17.0 million, respectively, and an immaterial ROU asset impairment charge, which were recorded within restructuring and impairments on the consolidated statements of earnings.Contents

The components of lease costs (in millions):
Quarter Ended Three Quarters Ended
Jun 27, 2021 Jun 28, 2020 Jun 27, 2021 Jun 28, 2020
Operating lease costs(1)
$ 386.9 $ 363.3 $ 1,185.6 $ 1,113.9
Variable lease costs 224.6 184.3 671.3 610.2
Short-term lease costs 7.4 8.1 23.7 24.7
Total lease costs $ 618.9 $ 555.7 $ 1,880.6 $ 1,748.8


	Quarter Ended
	Jan 2, 2022		Dec 27, 2020
Operating lease costs(1)	$	386.1	$	409.4
Variable lease costs	229.8		222.4
Short-term lease costs	7.1		8.7
Total lease costs	$	623.0	$	640.5

(1)~~Operating lease costs were net of~~Includes immaterial amounts of sublease ~~income. For the quarter~~income and ~~three quarters ended June 27, 2021, operating lease costs were also net of immaterial amounts of~~ rent concessions. For the quarter and three quarters ended June 28, 2020, we received $21.7 million in rent concessions, which was recorded as a reduction to store operating expenses on our consolidated statement of earnings.

The following table includes supplemental information (in millions):


		Three Quarters Ended							Quarter Ended
		Jun 27, 2021			Jun 28, 2020				Jan 2, 2022			Dec 27, 2020
Cash paid related to operating lease liabilities	Cash paid related to operating lease liabilities	$	1,200.6		$	1,089.4		Cash paid related to operating lease liabilities	$	410.0		$	385.6
Operating lease liabilities arising from obtaining ROU assets	Operating lease liabilities arising from obtaining ROU assets	1,030.7			770.4			Operating lease liabilities arising from obtaining ROU assets	346.8			353.8

		Jun 27, 2021			Jun 28, 2020				Jan 2, 2022			Dec 27, 2020
Weighted-average remaining operating lease term	Weighted-average remaining operating lease term	8.6 years			8.9 years			Weighted-average remaining operating lease term	8.6 years			8.8 years
Weighted-average operating lease discount rate	Weighted-average operating lease discount rate	2.5		%	2.5		%	Weighted-average operating lease discount rate	2.5		%	2.5		%

Finance lease assets are recorded in property, plant and equipment, net with the corresponding lease liabilities included in accrued liabilities and other long-term liabilities on the consolidated balance sheet. There were no material finance leases as of ~~June 27, 2021.~~

~~Table of Content~~s

January 2, 2022.

Minimum future maturities of operating lease liabilities (in millions):


Fiscal Year	Fiscal Year	Total		Fiscal Year	Total
2021 (excluding the three quarters ended June 27, 2021)		$	392.7
2022		1,533.3
2022 (excluding the quarter ended January 2, 2022)				2022 (excluding the quarter ended January 2, 2022)	$	1,127.4
2023	2023	1,388.0		2023	1,460.7
2024	2024	1,251.2		2024	1,346.1
2025	2025	1,101.4		2025	1,200.5
2026				2026	1,040.5
Thereafter	Thereafter	4,366.0		Thereafter	3,880.4
Total lease payments	Total lease payments	10,032.6		Total lease payments	10,055.6
Less imputed interest	Less imputed interest	(1,126.4)		Less imputed interest	(1,094.3)
Total	Total	$	8,906.2	Total	$	8,961.3

As of ~~June 27, 2021,~~January 2, 2022, we have entered into operating leases that have not yet commenced of ~~$846.7~~$925.8 million, primarily related to real estate leases. These leases will commence between fiscal year ~~2021~~2022 and fiscal year ~~2027~~2028 with lease terms ranging from ~~3 years~~ten to 20twenty years.

Note 9: Deferred Revenue

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

As of ~~June 27, 2021,~~January 2, 2022, the current and long-term deferred revenue related to Nestlé was $177.9 million and $6.4 billion, respectively. ~~During~~As of October 3, 2021, the ~~quarter~~current and ~~three~~long-term deferred revenue related to the Nestlé up-front payment was $177.0 million and $6.4 billion, respectively. For each of the quarters ended ~~June~~January 2, 2022 and December 27, ~~2021,~~2020, we recognized $44.2 ~~million and $132.5~~ million of prepaid royalty revenue related to Nestlé~~, respectively. During the quarter and three quarters ended June 28, 2020, we recognized $44.2 million and $132.6 million~~.

Table of ~~prepaid royalty revenue related to Nestlé, respectively.~~Contents

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


Quarter Ended ~~June 27, 2021~~January 2, 2022	Total
Stored value cards and loyalty program at ~~March 28,~~October 3, 2021	$	~~1,475.2~~1,448.5
Revenue deferred - card activations, card reloads and Stars earned	~~3,170.7~~3,917.5
Revenue recognized - card and Stars redemptions and breakage	~~(3,160.0)~~(3,410.8)
Other(1)	~~2.1~~ (2.7)
Stored value cards and loyalty program at ~~June 27, 2021~~January 2, 2022(2)	$	~~1,488.0~~1,952.5

Quarter Ended ~~June 28,~~December 27, 2020	~~Total~~
~~Stored value cards and loyalty program at March 29, 2020~~	$	~~1,273.1~~
~~Revenue deferred - card activations, card reloads and Stars earned~~	~~1,875.4~~
~~Revenue recognized - card and Stars redemptions and breakage~~	~~(1,842.4)~~
~~Other(1)~~	~~3.1~~
~~Stored value cards and loyalty program at June 28, 2020(2)~~	$	~~1,309.2~~

~~Table of Content~~s


~~Three Quarters Ended June 27, 2021~~	Total
Stored value cards and loyalty program at September 27, 2020	$	1,280.5
Revenue deferred - card activations, card reloads and Stars earned	~~9,317.8~~3,437.4
Revenue recognized - card and Stars redemptions and breakage	~~(9,118.0)~~(2,980.2)
Other(1)	~~7.7~~12.3
Stored value cards and loyalty program at ~~June~~December 27, ~~2021(2)~~	$	~~1,488.0~~

~~Three Quarters Ended June 28, 2020~~	~~Total~~
~~Stored value cards and loyalty program at September 29, 2019~~	$	~~1,113.7~~
~~Revenue deferred - card activations, card reloads and Stars earned~~	~~7,836.5~~
~~Revenue recognized - card and Stars redemptions and breakage~~	~~(7,640.7)~~
~~Other(1)~~	~~(0.3)~~
~~Stored value cards and loyalty program at June 28,~~ 2020(2)	$	~~1,309.2~~1,750.0

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

(2)As of ~~June~~January 2, 2022 and December 27, ~~2021 and June 28,~~ 2020, approximately ~~$1,380.2 million~~$1.8 billion and ~~$1,226.4 million~~$1.6 billion of these amounts were current, respectively.

2522

Table of ~~Content~~sContents

Note 10: Equity

Changes in AOCI by component, net of tax (in millions):
Quarter Ended Available-for-Sale Debt Securities Cash Flow Hedges Net Investment Hedges Translation Adjustment and Other Total
June 27, 2021
Net gains/(losses) in AOCI, beginning of period $ 2.0 $ (5.7) $ 19.6 $ (142.2) $ (126.3)
Net gains/(losses) recognized in OCI before reclassifications (0.1) 32.9 24.2 40.2 97.2
Net (gains)/losses reclassified from AOCI to earnings (0.2) 2.1 (2.5) 0 (0.6)
Other comprehensive income/(loss) attributable to Starbucks (0.3) 35.0 21.7 40.2 96.6
Net gains/(losses) in AOCI, end of period $ 1.7 $ 29.3 $ 41.3 $ (102.0) $ (29.7)
June 28, 2020
Net gains/(losses) in AOCI, beginning of period $ 5.6 $ (64.8) $ 47.8 $ (510.4) $ (521.8)
Net gains/(losses) recognized in OCI before reclassifications 4.0 (22.3) (18.4) 29.0 (7.7)
Net (gains)/losses reclassified from AOCI to earnings (1.7) 3.4 (2.1) 0 (0.4)
Other comprehensive income/(loss) attributable to Starbucks 2.3 (18.9) (20.5) 29.0 (8.1)
Net gains/(losses) in AOCI, end of period $ 7.9 $ (83.7) $ 27.3 $ (481.4) $ (529.9)
Three Quarters Ended Available-for-Sale Debt Securities Cash Flow Hedges Net Investment Hedges Translation Adjustment and Other Total
June 27, 2021
Net gains/(losses) in AOCI, beginning of period $ 5.7 $ (82.1) $ 11.5 $ (299.7) $ (364.6)
Net gains/(losses) recognized in OCI before reclassifications (2.5) 111.0 37.2 197.7 343.4
Net (gains)/losses reclassified from AOCI to earnings (1.5) 0.4 (7.4) 0 (8.5)
Other comprehensive income/(loss) attributable to Starbucks (4.0) 111.4 29.8 197.7 334.9
Net gains/(losses) in AOCI, end of period $ 1.7 $ 29.3 $ 41.3 $ (102.0) $ (29.7)
June 28, 2020
Net gains/(losses) in AOCI, beginning of period $ 3.9 $ 11.0 $ (10.1) $ (508.1) $ (503.3)
Net gains/(losses) recognized in OCI before reclassifications 6.4 (93.2) 42.3 26.7 (17.8)
Net (gains)/losses reclassified from AOCI to earnings (1.7) (4.5) (7.4) 0 (13.6)
Other comprehensive income/(loss) attributable to Starbucks 4.7 (97.7) 34.9 26.7 (31.4)
Cumulative effect of accounting adoption (0.7) 3.0 2.5 0 4.8
Net gains/(losses) in AOCI, end of period $ 7.9 $ (83.7) $ 27.3 $ (481.4) $ (529.9)

~~Table of Content~~s


Quarter Ended	Available-for-Sale Debt Securities		Cash Flow Hedges		Net Investment Hedges		Translation Adjustment and Other		Total
January 2, 2022
Net gains/(losses) in AOCI, beginning of period	$	1.5	$	158.3	$	48.6	$	(61.2)	$	147.2
Net gains/(losses) recognized in OCI before reclassifications	(2.6)		76.9		31.0		14.2		119.5
Net (gains)/losses reclassified from AOCI to earnings	(0.1)		(10.6)		(2.5)		—		(13.2)
Other comprehensive income/(loss) attributable to Starbucks	(2.7)		66.3		28.5		14.2		106.3


Net gains/(losses) in AOCI, end of period	$	(1.2)	$	224.6	$	77.1	$	(47.0)	$	253.5

December 27, 2020
Net gains/(losses) in AOCI, beginning of period	$	5.7	$	(82.1)	$	11.5	$	(299.7)	$	(364.6)
Net gains/(losses) recognized in OCI before reclassifications	(0.4)		4.8		(22.6)		238.7		220.5
Net (gains)/losses reclassified from AOCI to earnings	(1.2)		1.8		(2.4)		—		(1.8)
Other comprehensive income/(loss) attributable to Starbucks	(1.6)		6.6		(25.0)		238.7		218.7


Net gains/(losses) in AOCI, end of period	$	4.1	$	(75.5)	$	(13.5)	$	(61.0)	$	(145.9)

Impact of reclassifications from AOCI on the consolidated statements of earnings (in millions):


Quarter Ended	Quarter Ended						Quarter Ended
AOCI Components	AOCI Components	Amounts Reclassified from AOCI				Affected Line Item in the Statements of Earnings	AOCI Components	Amounts Reclassified from AOCI				Affected Line Item in the Statements of Earnings
		Jun 27, 2021		Jun 28, 2020				Jan 2, 2022		Dec 27, 2020
Gains/(losses) on available-for-sale debt securities	Gains/(losses) on available-for-sale debt securities	$	0.1	$	2.2	Interest income and other, net	Gains/(losses) on available-for-sale debt securities	$	0.2	$	1.5	Interest income and other, net
Gains/(losses) on cash flow hedges	Gains/(losses) on cash flow hedges	(1.8)		(4.2)		Please refer to Note 2, Derivative Financial Instruments for additional information.	Gains/(losses) on cash flow hedges	12.5		(1.1)		Please refer to Note 2, Derivative Financial Instruments for additional information.
Gains/(losses) on net investment hedges	Gains/(losses) on net investment hedges	3.3		2.9		Interest expense	Gains/(losses) on net investment hedges	3.4		3.2		Interest expense

		1.6		0.9		Total before tax		16.1		3.6		Total before tax
		(1.0)		(0.5)		Tax (expense)/benefit		(2.9)		(1.8)		Tax (expense)/benefit
		$	0.6	$	0.4	Net of tax		$	13.2	$	1.8	Net of tax

Three Quarters Ended
AOCI Components		Amounts Reclassified from AOCI				Affected Line Item in the Statements of Earnings
		Jun 27, 2021		Jun 28, 2020
Gains/(losses) on available-for-sale debt securities		$	1.8	$	2.0	Interest income and other, net
Gains/(losses) on cash flow hedges		1.4		5.9		Please refer to Note 2, Derivative Financial Instruments for additional information.
Gains/(losses) on net investment hedges		9.9		10.1		Interest expense

		13.1		18.0		Total before tax
		(4.6)		(4.4)		Tax (expense)/benefit
		$	8.5	$	13.6	Net of tax

In addition to 2.4 billion shares of authorized common stock with $0.001 par value per share, the Company has authorized 7.5 million shares of preferred stock, ~~NaN~~none of which was outstanding as of ~~June 27, 2021.~~January 2, 2022.

During the quarter ended January 2, 2022, we repurchased 31.1 million shares of common stock for $3.5 billion. As of ~~June 27, 2021, 48.9~~January 2, 2022, 17.8 million shares remained available for repurchase under current authorizations. We have suspended our share repurchase program until we restore certain financial leverage targets. We currently expect the suspension of share repurchases to continue for the remainder of fiscal 2021.

During the ~~third~~first quarter of fiscal ~~2021,~~2022, our Board of Directors approved a quarterly cash dividend to shareholders of ~~0.45~~$0.49 per share to be paid on ~~August 27, 2021~~February 25, 2022 to shareholders of record as of the close of business on ~~August 12, 2021.~~February 11, 2022.

Note 11: Employee Stock Plans

As of ~~June 27, 2021,~~January 2, 2022, there were ~~40.7~~34.4 million shares of common stock available for issuance pursuant to future equity-based compensation awards and ~~11.6~~11.2 million shares available for issuance under our employee stock purchase plan.

Table of Contents

Stock-based compensation expense recognized in the consolidated statements of earnings (in millions):


		Quarter Ended				Three Quarters Ended					Quarter Ended
		Jun 27, 2021		Jun 28, 2020		Jun 27, 2021		Jun 28, 2020			Jan 2, 2022		Dec 27, 2020
Restricted Stock Units (“RSUs”)										Restricted Stock Units (“RSUs”)	$	95.7	$	98.4
Options	Options	$	0.2	$	1.4	$	2.0	$	3.8	Options	0.1		0.9
Restricted Stock Units (“RSUs”)		79.8		40.0		253.3		184.2
Total stock-based compensation expense	Total stock-based compensation expense	$	80.0	$	41.4	$	255.3	$	188.0	Total stock-based compensation expense	$	95.8	$	99.3

Stock option and RSU transactions from ~~September 27, 2020~~October 3, 2021 through ~~June 27, 2021~~January 2, 2022 (in millions):


		Stock Options		RSUs			Stock Options		RSUs
Options outstanding/Nonvested RSUs, September 27, 2020		9.2		8.3
Options outstanding/Nonvested RSUs, October 3, 2021						Options outstanding/Nonvested RSUs, October 3, 2021	5.2		7.7
Granted	Granted	0		4.0		Granted	—		3.5
Options exercised/RSUs vested	Options exercised/RSUs vested	(3.1)		(3.1)		Options exercised/RSUs vested	(0.6)		(3.2)
Forfeited/expired	Forfeited/expired	(0.1)		(1.2)		Forfeited/expired	—		(0.3)
Options outstanding/Nonvested RSUs, June 27, 2021		6.0		8.0
Total unrecognized stock-based compensation expense, net of estimated forfeitures, as of June 27, 2021		$	0.2	$	200.3
Options outstanding/Nonvested RSUs, January 2, 2022						Options outstanding/Nonvested RSUs, January 2, 2022	4.6		7.7
Total unrecognized stock-based compensation expense, net of estimated forfeitures, as of January 2, 2022						Total unrecognized stock-based compensation expense, net of estimated forfeitures, as of January 2, 2022	$	—	$	311.9��

~~Table of Content~~s

Note 12: ~~Income Taxes~~

The effective tax rate for the quarter ended June 27, 2021 was 18.2% compared to 16.5% for the same quarter in fiscal 2020. The increase was primarily due to the foreign rate differential on our mix of earnings by tax jurisdiction, as well as a change in the absolute pre-tax operating results when compared to the same period of the prior year. This was partially offset by lapping valuation allowances recorded against deferred tax assets of certain international jurisdictions in the prior year (approximately 840 basis points), a current year remeasurement of deferred tax assets due to an enacted corporate rate change (approximately 510 basis points) and lapping the release of income tax reserves related to the expiration of statute of limitations in the prior year (approximately 330 basis points).

The effective tax rate for the first three quarters ended June 27, 2021 was 21.7% compared to 26.3% for the same period in fiscal 2020. The decrease was primarily due to lapping valuation allowances recorded against deferred tax assets of certain international jurisdictions in the prior year (approximately 1,400 basis points) and a current year remeasurement of deferred tax assets due to an enacted corporate rate change (approximately 230 basis points). This was partially offset by the foreign rate differential on our mix of earnings by tax jurisdiction and lapping the release of income tax reserves related to the expiration of statute of limitations in the prior year.

~~Note 13: Earnings/(Loss)~~Earnings per Share

Calculation of net ~~earnings/(loss)~~earnings per common share (“EPS”) — basic and diluted (in millions, except ~~earnings/(loss) per share~~EPS):


		Quarter Ended				Three Quarters Ended					Quarter Ended
		Jun 27, 2021		Jun 28, 2020		Jun 27, 2021		Jun 28, 2020			Jan 2, 2022		Dec 27, 2020
Net earnings/(loss) attributable to Starbucks		$	1,153.4	$	(678.4)	$	2,434.9	$	535.7
Net earnings attributable to Starbucks										Net earnings attributable to Starbucks	$	815.9	$	622.2
Weighted average common shares outstanding (for basic calculation)	Weighted average common shares outstanding (for basic calculation)	1,178.5		1,168.5		1,177.0		1,173.6		Weighted average common shares outstanding (for basic calculation)	1,169.6		1,175.0
Dilutive effect of outstanding common stock options and RSUs	Dilutive effect of outstanding common stock options and RSUs	7.7		0		7.7		9.1		Dilutive effect of outstanding common stock options and RSUs	7.0		8.0
Weighted average common and common equivalent shares outstanding (for diluted calculation)	Weighted average common and common equivalent shares outstanding (for diluted calculation)	1,186.2		1,168.5		1,184.7		1,182.7		Weighted average common and common equivalent shares outstanding (for diluted calculation)	1,176.6		1,183.0
Earnings/(loss) per share — basic		$	0.98	$	(0.58)	$	2.07	$	0.46
Earnings/(loss) per share — diluted		$	0.97	$	(0.58)	$	2.06	$	0.45
EPS — basic										EPS — basic	$	0.70	$	0.53
EPS — diluted										EPS — diluted	$	0.69	$	0.53

Potential dilutive shares consist of the incremental common shares issuable upon the exercise of outstanding stock options (both vested and non-vested) and unvested RSUs, calculated using the treasury stock method. For the three months ended June 28, 2020, the Company had 8.1 million of outstanding stock options and unvested RSUs that could potentially dilute earnings per share in future periods that were excluded from the computation of diluted earnings per share because the effect would have been antidilutive given the net loss during the period. The calculation of dilutive shares outstanding would exclude out-of-the-money stock options (i.e., such options’ exercise prices were greater than the average market price of our common shares for the period) because their inclusion would be ~~antidilutive.~~anti-dilutive. As of ~~June~~January 2, 2022 and December 27, ~~2021 and June 28,~~ 2020, we had 0no out-of-the-money stock options.

Note ~~14:~~13: Commitments and Contingencies

Legal Proceedings

On April 13, 2010, an organization named Council for Education and Research on Toxics (“Plaintiff”) filed a lawsuit in the Superior Court of the State of California, County of Los Angeles, against the Company and certain other defendants who manufacture, package, distribute or sell brewed coffee. The lawsuit is Council for Education and Research on Toxics v. Starbucks Corporation, et al. On May 9, 2011, the Plaintiff filed an additional lawsuit in the Superior Court of the State of California, County of Los Angeles, against the Company and additional defendants who manufacture, package, distribute or sell packaged coffee. The lawsuit is Council for Education and Research on Toxics v. Brad Barry LLC, et al. Both cases have since been consolidated and now include nearly eighty defendants, which constitute the ~~great~~ majority of the coffee industry in California. Plaintiff alleges that the Company and the other defendants failed to provide warnings for their coffee products of exposure to the chemical acrylamide as required under California Health and Safety Code ~~section~~Section 25249.5, the California Safe Drinking Water and Toxic Enforcement Act of 1986, better known as Proposition 65. Plaintiff seeks equitable relief, including providing warnings to consumers of coffee products, as well as civil penalties in the amount of the statutory maximum of two thousand five hundred dollars per day per violation of Proposition 65. The Plaintiff asserts that every consumed cup of coffee, absent a compliant warning, is equivalent to a violation under Proposition 65.

The Company, as part of a joint defense group organized to defend against the lawsuit, disputes the claims of the Plaintiff. Acrylamide is not added to coffee but is present in all coffee in small amounts (parts per billion) as a byproduct of the coffee

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bean roasting process. The Company has asserted multiple affirmative defenses. Trial of the first phase of the case (“Phase 1”)

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commenced on September 8, 2014, and was limited to three affirmative defenses shared by all defendants. On September 1, 2015, the trial court issued a final ruling adverse to defendants on all Phase 1 defenses. Trial of the second phase of the case (“Phase 2”) commenced in the fall of 2017. On May 7, 2018, the trial court issued a ruling adverse to defendants on the Phase 2 defense, the Company's last remaining defense to liability. On June 22, 2018, the California Office of Environmental Health Hazard Assessment (OEHHA) proposed a new regulation clarifying that cancer warnings are not required for coffee under Proposition 65. The case was set to proceed to a third phase trial (“Phase 3”) on damages, remedies and attorneys' fees on October 15, 2018. However, on October 12, 2018, the California Court of Appeal granted the ~~defendants~~defendants’ request for a stay of the Phase 3 trial.

On June 3, 2019, the California Office of Administrative Law (OAL) approved the coffee exemption regulation. The regulation became effective on October 1, 2019. On June 24, 2019, the California Court of Appeal lifted the stay of the litigation. At the status conference on August 25, 2020, the trial judge granted the defendants’ motion for summary judgment, ruling that the coffee exemption regulation is a complete defense to the Plaintiff’s complaint. The Notice of Entry of Judgment from the court was served on October 6, 2020, and the Plaintiff filed a Notice of Appeal on November 20, 2020 and its opening brief in the appeals process on April 9, 2021. ~~After the grant of an extension, defendants have until~~Defendants filed their response brief on August 9, 2021, ~~to file their brief in response.~~and Plaintiff filed a reply on November 15, 2021. Starbucks believes that the likelihood that the Company will ultimately incur a material loss in connection with this litigation is less than reasonably possible. Accordingly, as of January 2, 2022, no loss contingency ~~was~~has been recorded for this matter.

Starbucks is party to various other legal proceedings arising in the ordinary course of business, including certain employment litigation cases that have been certified as class or collective actions, but, except as noted above, is not currently a party to any legal proceeding that management believes could have a material adverse effect on our consolidated financial position, results of operations or cash flows.

Note ~~15:~~14: Segment Reporting

Segment information is prepared on the same basis that our ~~ceo,~~chief executive officer, who is our ~~Chief Operating Decision Maker,~~chief operating decision maker, manages the segments, evaluates financial results and makes key operating decisions.

Consolidated revenue mix by product type (in millions):


		Quarter Ended								Three Quarters Ended									Quarter Ended
		Jun 27, 2021				Jun 28, 2020				Jun 27, 2021				Jun 28, 2020					Jan 2, 2022				Dec 27, 2020
Beverage(1)	Beverage(1)	$	4,753.1	63	%	$	2,628.8	62	%	$	13,222.6	63	%	$	10,429.1	60	%	Beverage(1)	$	4,898.4	61	%	$	4,251.9	63	%
Food(2)	Food(2)	1,311.2		18	%	629.2		15	%	3,578.2		17	%	2,760.6		16	%	Food(2)	1,434.6		18	%	1,140.8		17	%
Other(3)	Other(3)	1,432.2		19	%	964.1		23	%	4,113.1		20	%	4,125.2		24	%	Other(3)	1,717.4		21	%	1,356.7		20	%
Total	Total	$	7,496.5	100	%	$	4,222.1	100	%	$	20,913.9	100	%	$	17,314.9	100	%	Total	$	8,050.4	100	%	$	6,749.4	100	%

(1)Beverage represents sales within our company-operated stores.

(2)Food includes sales within our company-operated stores.

(3)“Other” primarily consists of packaged and single-serve coffees and teas, royalty and licensing revenues, serveware, beverage-related ingredients and ready-to-drink beverages, among other items.

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The table below presents financial information for our reportable operating segments and Corporate and Other segment (in millions):

Quarter Ended


		Americas		International		Channel Development		Corporate and Other		Total			North America (1)		International (1)		Channel Development		Corporate and Other (1)		Total
June 27, 2021
January 2, 2022												January 2, 2022
Total net revenues	Total net revenues	$	5,400.3	$	1,658.4	$	414.0	$	23.8	$	7,496.5	Total net revenues	$	5,732.3	$	1,875.9	$	417.1	$	25.1	$	8,050.4
Depreciation and amortization expenses	Depreciation and amortization expenses	188.9		129.7		0.2		35.5		354.3		Depreciation and amortization expenses	200.0		133.1		—		32.9		366.0
Income from equity investees	Income from equity investees	0		42.0		63.5		0		105.5		Income from equity investees	—		0.7		39.6		—		40.3
Operating income/(loss)	Operating income/(loss)	1,315.7		318.3		216.0		(361.3)		1,488.7		Operating income/(loss)	1,083.1		299.6		183.2		(388.1)		1,177.8

June 28, 2020
December 27, 2020												December 27, 2020
Total net revenues	Total net revenues	$	2,805.5	$	949.6	$	447.3	$	19.7	$	4,222.1	Total net revenues	$	4,675.6	$	1,681.9	$	371.4	$	20.5	$	6,749.4
Depreciation and amortization expenses	Depreciation and amortization expenses	191.3		128.5		0.3		40.9		361.0		Depreciation and amortization expenses	188.9		140.0		0.2		37.0		366.1
Income from equity investees	Income from equity investees	0		17.4		51.0		0		68.4		Income from equity investees	—		26.3		56.4		—		82.7
Operating income/(loss)	Operating income/(loss)	(404.9)		(86.0)		124.2		(337.2)		(703.9)		Operating income/(loss)	802.8		283.0		180.8		(353.1)		913.5

Three Quarters Ended
		Americas		International		Channel Development		Corporate and Other		Total
June 27, 2021
Total net revenues		$	14,768.1	$	4,923.7	$	1,155.3	$	66.8	$	20,913.9
Depreciation and amortization expenses		563.9		413.1		0.9		109.1		1,087.0
Income from equity investees		0		95.0		170.3		0		265.3
Operating income/(loss)		3,034.4		844.6		569.3		(1,058.4)		3,389.9

June 28, 2020
Total net revenues		$	12,146.3	$	3,655.3	$	1,461.0	$	52.3	$	17,314.9
Depreciation and amortization expenses		571.9		385.2		0.9		110.3		1,068.3
Income from equity investees		0		73.1		137.2		0		210.3
Operating income/(loss)		1,315.1		174.5		489.3		(975.5)		1,003.4

~~Note 16: Subsequent Event~~

~~On July 26, 2021, we entered into agreements~~(1)North America and International total net revenues and operating income and Corporate and Other operating loss for the quarter ended December 27, 2020, have been restated to sell our 50% ownership in Starbucks Coffee Korea Co., Ltd. such that our in-market joint venture partner, E-Mart Inc., will acquire an additional 17.5% interest and Apfin Investment Pte Ltd, an affiliate of GIC Private Limited, which is a Singapore sovereign wealth fund, will acquire the remaining 32.5%. The sale will have a combined price of $1.175 billion. The transactions are subject to regulatory approval by the Korean government and are expected to close within the next 90 days. Upon close, the market will be transitioned to a fully licensed model, and we expect to recognize a combined material pre-tax gain on our consolidated statements of earnings.conform with current period presentation.

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Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

CAUTIONARY STATEMENT PURSUANT TO THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

Certain statements herein are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, these statements can be identified by the use of words such as “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “feel,” “forecast,” “intend,” “may,” “outlook,” “plan,” “potential,” “project,” “seek,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements include statements relating to trends in or expectations relating to the ~~expected~~ effects of our existing and any future initiatives, strategies and plans, as well as trends in or expectations regarding our financial results and long-term growth model and drivers, the anticipated timing and effects of recovery of our business, the conversion of several market operations to fully licensed models, our plans for streamlining our operations, including store openings, closures and changes in store formats and models, expanding our licensing to Nestlé of our consumer packaged goods and Foodservice businesses and its effects on our Channel Development segment results, tax rates, business opportunities and expansion, strategic acquisitions, ~~the expected sale of our ownership share in and~~ our future relationship with Starbucks Coffee Korea Co., Ltd., expenses, dividends, share repurchases, commodity costs and our mitigation strategies, liquidity, cash flow from operations, use of cash and cash requirements, investments, borrowing capacity and use of proceeds, continuing compliance with our covenants under our credit facilities and commercial paper program, repatriation of cash to the U.S., the likelihood of the issuance of additional debt and the applicable interest rate, the continuing impact of the COVID-19 pandemic on our financial results, ~~credits available to us under the CARES Act and~~future availability of governmental subsidies for COVID-19 or other ~~government credits,~~public health events, the expected effects of new accounting pronouncements and the estimated impact of changes in U.S. tax law, including on tax rates, investments funded by these changes and potential outcomes and effects of legal proceedings. Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties. Actual future results and trends may differ materially depending on a variety of factors, including, but not limited to: further spread of COVID-19 and related disruptions to our business; regulatory measures or voluntary actions that may be put in place to limit the spread of COVID-19, including restrictions on business operations or social distancing requirements, and the duration and efficacy of such restrictions; the potential for a resurgence of COVID-19 infections and the circulation of novel variants of COVID-19 in a given geographic region after it has hit its “peak”; fluctuations in U.S. and international economies and currencies; our ability to preserve, grow and leverage our brands; the ability of our business partners and third-party providers to fulfill their responsibilities and commitments; potential negative effects of incidents involving food or beverage-borne illnesses, tampering, adulteration, contamination or mislabeling; potential negative effects of material breaches of our information technology systems to the extent we experience a material breach; material failures of our information technology systems; costs associated with, and the successful execution of, the Company’s initiatives and plans, including the successful expansion of our Global Coffee Alliance with Nestlé; our ability to obtain financing on acceptable terms; the acceptance of the Company’s products by our customers, evolving consumer preferences and tastes and changes in consumer spending behavior; partner investments, changes in the availability and cost of ~~labor;~~labor including any union organizing efforts and our responses to such efforts; significant increased logistics costs; inflationary pressures; the impact of competition; inherent risks of operating a global business; the prices and availability of coffee, dairy and other raw materials; the effect of legal proceedings; the effects of changes in tax laws and related guidance and regulations that may be implemented and other risks detailed in our filings with the SEC, including in Part I Item IA “Risk Factors” in the 10-K.

A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. You should not place undue reliance on the forward-looking statements, which speak only as of the date of this report. We are under no obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.

This information should be read in conjunction with the consolidated financial statements and the notes included in Item 1 of Part I of this 10-Q and the audited consolidated financial statements and notes, and Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”), contained in the 10-K filed with the SEC on November ~~12, 2020.~~19, 2021.

Introduction and Overview

Starbucks is the premier coffee roaster and retailer of specialty coffee with operations in 8384 markets around the world. As of ~~June 27, 2021,~~January 2, 2022, Starbucks had over ~~33,200~~34,300 company-operated and licensed stores, an increase of 3%4% from the prior year. Additionally, we sell a variety of consumer-packaged goods, ~~or CPG,~~ primarily through the Global Coffee Alliance established with Nestlé and other partnerships and joint ventures. ~~Our~~During the quarter ended January 2, 2022, our global comparable store sales grew 13%, demonstrating powerful momentum beyond recovery from the significant adverse impacts from the pandemic in the prior year period.

We have three reportable operating segments: 1) North America, which is inclusive of the U.S. and Canada, 2) International, which is inclusive of China, Japan, Asia Pacific, Europe, Middle East, Africa, Latin America and the Caribbean; and 3) Channel

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Development. Non-reportable operating segments such as Evolution Fresh and unallocated corporate expenses are reported within Corporate and Other.

We believe our financial results and long-term growth model will continue to be driven by new store openings, comparable store sales growth and operating margin ~~management. These~~management, underpinned by disciplined capital allocation. We believe these key operating metrics are ~~important indicators for~~useful to investors because management uses these metrics to assess the growth of our business and the effectiveness of our marketing and operational strategies. Throughout this MD&A, we commonly discuss the following key operating metrics:

•New store openings and store count

•Comparable store sales ~~represent~~growth

•Operating margin

Comparable store sales growth represents the percentage change in sales in one period from the same prior year period for company-operated stores open for 13 months or longer and exclude the impact of foreign currency translation. We analyze comparable store sales growth on a constant currency basis as this helps identify underlying business trends, without distortion from the effects of currency movements. Stores that are temporarily closed or operating at reduced hours due to the COVID-19 pandemic remain in comparable store sales while stores identified for permanent closure have been removed. ~~During~~Additionally, we monitor our two-year comparable sales metric based on a multiplicative basis(1) to better analyze our performance due to the ~~quarter ended June 27,~~

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~~2021, our global comparable store sales grew 73%, demonstrating powerful momentum beyond recovery from the significant~~ adverse impacts from the ~~pandemic in the prior year period.~~

We have three reportable operating segments: Americas, International and Channel Development. Non-reportable operating segments and unallocated corporate expenses are reported within Corporate and Other.pandemic.

Our fiscal year ends on the Sunday closest to September 30. Our ~~2021~~ fiscal 2022 year includes 5352 weeks ~~with the 53rd week falling in the fourth~~while our fiscal ~~quarter, while fiscal~~2021 year ~~2020~~ included 5253 weeks. All references to store counts, including data for new store openings, are reported net of store closures, unless otherwise noted.

~~COVID-19 Update~~

Starbucks results for the ~~third~~first quarter of fiscal ~~2021 demonstrated powerful momentum beyond recovery from the COVID-19 pandemic. The sequential improvements in our quarterly results~~2022 demonstrate the overall strength and resilience of our brand. Consolidated net revenues increased ~~78%~~19% to ~~$7.5~~$8.1 billion in the ~~third~~first quarter of fiscal 2022 compared to $6.7 billion in the first quarter of fiscal 2021, ~~compared~~primarily driven by strength in our U.S. business attributable to ~~$4.2 billion~~strong holiday performance, partially offset by continued COVID-19 related disruptions in certain North America and International markets. Consolidated operating margin expanded 110 basis points from the ~~third quarter of fiscal 2020,~~prior year to 14.6%, primarily due to ~~lapping lost~~ sales ~~resulting~~leverage from ~~the COVID-19 pandemic~~business recovery, pricing in ~~the prior year~~North America and ~~strength~~lower restructuring costs, partially offset by investments in ~~the U.S. business in the current year.~~store partner wages and benefits as well as inflation.

For the ~~Americas~~North America segment, comparable store sales increased ~~84%~~18% for the ~~third~~first quarter of fiscal ~~2021~~2022 compared to a decline of ~~41%~~6% in the ~~third~~first quarter of fiscal ~~2020.~~2021. Comparable store sales for our U.S. market increased ~~83%~~18% for the ~~third~~first quarter of fiscal ~~2021~~2022 compared to a decline of ~~40%~~5% in the ~~third~~first quarter of fiscal ~~2020.~~2021. The U.S. market also had a ~~10%~~12% increase in two-year comparable store sales,~~(1). We continued to incur costs attributable to COVID-19, including catastrophe pay programs for company-operated~~ despite modified store partners (employees). These were partially offset by qualified tax credits provided by the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) and the Canada Emergency Wage Subsidy (“CEWS”). In fiscal year 2020, we announced a plan to optimize our Americas store portfolio, primarily in dense, metropolitan markets, by blending store formats to better cater to changing customer tastes and preferences. During the third quarter of fiscal 2021, we closed approximately 50 stores in the U.S. and Canada, and expect to close approximately 180 additional stores primarily over the next 6 to 12 months to complete our restructuring efforts. Costs incurredoperations related to the ~~restructuring efforts are recorded as restructuring~~COVID-19 pandemic, which have been ongoing, whether intermittently or concentrated, since the COVID-19 pandemic began, The segment also experienced higher than anticipated costs, primarily related to enhancements in retail store partner wages, increased supply chain costs due to inflationary pressures and ~~impairments~~increased spend on ~~our consolidated statements of earnings~~new partner training and ~~will continue~~support costs to be recorded as stores are identified for closure and are eventually closed. We expect the majority of stores to be identified for closure and expect to recognize the remaining restructuring and impairment costs in 2021.address labor market conditions.

For the International segment, comparable store sales ~~increased 41% for the third quarter of fiscal 2021 compared to a decline of 37% in the third quarter of fiscal 2020. Comparable store sales for our China market increased 19%~~declined 3%, inclusive of a 6%3% adverse impact from lapping the prior-year value-added tax ~~(“VAT”)~~ benefit. ~~Key markets in~~Comparable store sales for our China market declined 14% for the ~~International segment~~first quarter of fiscal 2022, inclusive of a 4% adverse impact from lapping the prior-year value-added tax benefit. Our China market continued to experience pandemic-related restrictions that significantly impacted customer mobility during the ~~quarter. Although nearly all company-operated stores in these~~quarter, while our other International markets ~~remained open, the modified operating protocols had an adverse impact to comparable store sales and operating results.~~were not as severely impacted.

Net revenues for our Channel Development segment ~~declined $33~~increased $46 million, or 7%12%, when compared with the ~~third~~first quarter of fiscal ~~2020.~~2021. This was largely due to ~~the transition of certain single-serve product activities to Nestlé beginning in the fourth quarter of fiscal 2020. This was partially offset by~~ higher product sales to and royalty revenue from the Global Coffee Alliance and growth in our international ready-to-drink business. ~~Our Channel Development segment continues to grow category share despite a decline in the overall at-home coffee category as consumer mobility improved.~~

Absent significant ~~and prolonged~~ COVID-19 relapses or global economic disruptions, and based on the current trend of our retail business operations and our focused efforts to expand contactless customer experiences, enhance digital capabilities and drive beverage innovation, we are confident in the strength of our brand and the durability of our long-term growth model. However, our business is experiencing, and expects to continue to experience, operating margin pressures such as accelerated inflation, increased spend due to labor market conditions and extended COVID-19 related pay and benefits for our partners. We believe we have plans to effectively mitigate these pressures, such as improving retail store operations and potential adjustments to pricing. However, if our mitigation plans are not effective, these pressures and other factors could have an adverse impact on our business.

(1)Two-year comparable store sales metric is calculated as ((1 + % change in comparable store sales in ~~FY20)~~FY21) * (1 + % change in comparable store sales in ~~FY21)~~FY22)) - 1. Two-year comparable store sales for the U.S. of ~~10%~~12% = ((1 + ~~(-40%~~(-5%)) * (1 + ~~83%~~18%)) - 1.

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~~Comparable Store Sales~~

~~Starbucks comparable store sales for the third quarter of fiscal 2021:~~
Quarter Ended Jun 27, 2021 Three Quarters Ended Jun 27, 2021

Change in
Comparable Store Sales
Change in
Transactions
Change in
Ticket
Change in
Comparable Store Sales Change in
Transactions Change in
Ticket
Consolidated 73% 75% (1)% 21% 7% 13%
Americas 84% 82% 1% 21% 4% 16%
International 41% 55% (9)% 21% 18% 3%

The above comparable store sales for the quarter ended June 27, 2021 reflect continued recovery from the pandemic, which had a significant adverse impact to our results during the same quarter in the prior year.

~~Refer to our~~ ~~Quarterly Store Data, also included in Item 2 of Part I of this 10-Q, for additional information on our company-operated and licensed store portfolio.~~

Results of Operations (in millions)

Revenues


		Quarter Ended								Three Quarters Ended									Quarter Ended
		Jun 27, 2021		Jun 28, 2020		$ Change		% Change		Jun 27, 2021		Jun 28, 2020		$ Change		% Change			Jan 2, 2022		Dec 27, 2020		$ Change		% Change
Company-operated stores	Company-operated stores	$	6,363.1	$	3,444.4	$	2,918.7	84.7	%	$	17,742.8	$	13,991.0	$	3,751.8	26.8	%	Company-operated stores	$	6,722.4	$	5,726.5	$	995.9	17.4	%
Licensed stores	Licensed stores	680.2		300.5		379.7		126.4		1,889.0		1,782.4		106.6		6.0		Licensed stores	850.8		613.8		237.0		38.6
Other	Other	453.2		477.2		(24.0)		(5.0)		1,282.1		1,541.5		(259.4)		(16.8)		Other	477.2		409.1		68.1		16.6
Total net revenues	Total net revenues	$	7,496.5	$	4,222.1	$	3,274.4	77.6	%	$	20,913.9	$	17,314.9	$	3,599.0	20.8	%	Total net revenues	$	8,050.4	$	6,749.4	$	1,301.0	19.3	%

For the quarter ended ~~June 27, 2021~~January 2, 2022 compared with the quarter ended ~~June 28,~~December 27, 2020

Licensed stores revenue increased ~~$380~~$237 million ~~primarily~~also contributed to the increase in total net revenues, driven by higher product and equipment sales to and royalty revenues from our ~~licensees.~~licensees ($206 million) and the conversion of our Korea market from a joint venture to a fully licensed market in the fourth quarter of fiscal 2021 ($39 million).

Other revenues ~~decreased $24~~increased $68 million, primarily due to ~~the transition of certain single-serve product activities to Nestlé. This was partially offset by~~ higher product sales and royalty revenue in the Global Coffee Alliance and growth in our international ready-to-drink business.

~~For the three quarters ended June 27, 2021 compared with the three quarters ended June 28, 2020~~

~~Licensed stores revenue increased $107 million, primarily driven by higher product and equipment sales to and royalty revenues from our licensees.~~

Other revenues decreased $259 million, primarily due to the transition of certain single-serve product activities to Nestlé and the lapping of higher transition activities related to the Global Coffee Alliance in the prior year. These were partially offset by growth in our ready-to-drink business.

For the quarter ended ~~June 27, 2021~~January 2, 2022 compared with the quarter ended ~~June 28,~~December 27, 2020

Product and distribution costs as a percentage of total net revenues ~~decreased 570~~increased 100 basis points for the ~~third~~first quarter of fiscal ~~2021,~~2022, primarily due to ~~sales leverage driven~~supply chain costs due to inflationary pressures (approximately 180 basis points) and product mix changes (approximately 40 basis points), partially offset by ~~lapping the severe impact of the COVID-19 pandemic in the prior year and~~ pricing in ~~the Americas.~~North America (approximately 150 basis points).

Store operating expenses as a percentage of total net revenues decreased ~~2,050~~30 basis points for the ~~third~~first quarter of fiscal ~~2021.~~2022. Store operating expenses as a percentage of company-operated ~~store revenues decreased 2,710~~stores revenue increased 50 basis points, primarily due to enhancements in retail store partner wages and benefits (approximately 180 basis points) and increased spend on new partner training and support costs to address labor market conditions (approximately 110 basis points), partially offset by sales leverage from business recovery and lapping higher COVID-19 related costs in the prior year, mainly catastrophe and service pay for store partners, net of temporary subsidies from the U.S. and certain foreign governments (approximately 840 basis points). These increases were partially offset by additional investments in retail store partners wages and benefits (approximately 100 basis points).

Other operating expenses decreased $62 million for the third quarter of fiscal 2021, primarily due to lower Global Coffee Alliance transaction costs, inclusive of lapping certain transition items from the prior year and a change in estimate relating to a transaction cost accrual.recovery.

Depreciation and amortization expenses as a percentage of total net revenues decreased ~~390~~90 basis points, primarily due to sales leverage.

General and administrative expenses increased ~~$95~~$54 million, primarily due to ~~higher performance-based compensation recognizing the better than expected business recovery ($64 million) and~~ incremental ~~strategic~~ investments in technology ($2129 million) and increased partner wages and benefits ($19 million), partially offset by lower performance-based compensation ($8 million).

Restructuring and impairment expenses decreased ~~$58~~$80 million, primarily due to lapping our North America store portfolio optimization in the prior year, specifically lower asset impairment ~~related to store portfolio optimization~~charges ($3441 million) and ~~lapping the intangible~~accelerated lease right-of-use asset ~~impairment from the prior year~~amortization costs ($2239 million).

Income from equity investees ~~increased $37~~decreased $42 million, primarily due to ~~higher income~~the conversion of our Korea market from ~~our South Korea~~a joint venture ~~attributable~~ to ~~net new store growth and lapping lower royalty income due to the severe impact of the COVID-19 pandemic~~a fully licensed market in the ~~prior year~~fourth quarter of fiscal 2021 ($1827 million)~~. Higher~~ and lower income from our North American Coffee Partnership joint venture ~~also contributed~~ ($~~13 million).~~

~~The combination of these changes resulted in an overall increase in operating margin of 3,660 basis points for the third quarter of fiscal 2021.~~

~~For the three quarters ended June 27, 2021 compared with the three quarters ended June 28, 2020~~

Product and distribution costs as a percentage of total net revenues decreased 310 basis points for the first three quarters of fiscal 2021, primarily due to sales leverage driven by lapping the severe impact of the COVID-19 pandemic in the prior year and pricing in the Americas.

Store operating expenses as a percentage of total net revenues decreased 530 basis points for the first three quarters of fiscal 2021. Store operating expenses as a percentage of company-operated store revenues decreased 900 basis points, primarily due to sales leverage from business recovery and lapping higher COVID-19 related costs in the prior year, mainly catastrophe and service pay for store partners, net of temporary subsidies from the U.S. and certain foreign governments (approximately 280 basis points). These increases were partially offset by additional investments in retail store partners wages and benefits (approximately 200 basis points).

Other operating expenses decreased $80 million for the first three quarters of fiscal 2021, primarily due to lower Global Coffee Alliance transaction costs, inclusive of lapping certain transition items from the prior year and a change in estimate relating to a transaction cost accrual.

~~Depreciation and amortization expenses as a percentage of total net revenues decreased 100 basis points, primarily due to sales leverage.~~

General and administrative expenses increased $191 million, primarily due to higher performance-based compensation recognizing the better than expected business recovery ($108 million) and incremental strategic investments in technology ($74 million).

Restructuring and impairment expenses increased $31 million, primarily due to accelerated amortization of right-of-use lease assets associated with the closure of certain company-operated stores ($39 million) and higher asset impairment ($16 million), related to store portfolio optimization, partially offset by lapping the intangible asset impairment from the prior year ($22 million).

Income from equity investees increased $55 million, primarily due to higher income from our North American Coffee Partnership joint venture ($33 million) as well as net new store growth in our South Korea joint venture and lapping lower royalty income due to the severe impact of the COVID-19 pandemic in the prior year ($1017 million).

The combination of these changes resulted in an overall increase in operating margin of ~~1,040~~110 basis points for the first ~~three quarters~~quarter of fiscal ~~2021.~~

Other Income and Expenses

Quarter Ended Three Quarters Ended
Jun 27,
2021 Jun 28,
2020
$
Change
Jun 27,
2021 Jun 28,
2020 Jun 27,
2021 Jun 28,
2020 $
Change Jun 27,
2021 Jun 28,
2020
As a % of Total
Net Revenues
As a % of Total
Net Revenues
Operating income/(loss) $ 1,488.7 $ (703.9) $ 2,192.6 19.9 % (16.7) % $ 3,389.9 $ 1,003.4 $ 2,386.5 16.2 % 5.8 %
Interest income and other, net 36.0 12.7 23.3 0.5 0.3 68.6 30.7 37.9 0.3 0.2
Interest expense (113.4) (120.8) 7.4 (1.5) (2.9) (349.2) (312.1) (37.1) (1.7) (1.8)
Earnings/(loss) before income taxes 1,411.3 (812.0) 2,223.3 18.8 (19.2) 3,109.3 722.0 2,387.3 14.9 4.2
Income tax expense/(benefit) 257.1 (133.9) 391.0 3.4 (3.2) 673.6 190.0 483.6 3.2 1.1
Net earnings/(loss) including noncontrolling interests 1,154.2 (678.1) 1,832.3 15.4 (16.1) 2,435.7 532.0 1,903.7 11.6 3.1
Net earnings/(loss) attributable to noncontrolling interests 0.8 0.3 0.5 — — 0.8 (3.7) 4.5 — —
Net earnings/(loss) attributable to Starbucks $ 1,153.4 $ (678.4) $ 1,831.8 15.4 % (16.1) % $ 2,434.9 $ 535.7 $ 1,899.2 11.6 % 3.1 %
Effective tax rate including noncontrolling interests 18.2 % 16.5 % 21.7 % 26.3 %


	Quarter Ended
	Jan 2, 2022		Dec 27, 2020		$ Change		Jan 2, 2022		Dec 27, 2020
							As a % of Total Net Revenues
Operating income	$	1,177.8	$	913.5	$	264.3	14.6	%	13.5	%


Interest income and other, net	(0.1)		15.5		(15.6)		—		0.2
Interest expense	(115.3)		(120.7)		5.4		(1.4)		(1.8)
Earnings before income taxes	1,062.4		808.3		254.1		13.2		12.0
Income tax expense	246.3		186.1		60.2		3.1		2.8
Net earnings including noncontrolling interests	816.1		622.2		193.9		10.1		9.2
Net earnings attributable to noncontrolling interests	0.2		—		0.2		—		—
Net earnings attributable to Starbucks	$	815.9	$	622.2	$	193.7	10.1	%	9.2	%
Effective tax rate including noncontrolling interests							23.2	%	23.0	%

For the quarter ended ~~June 27, 2021~~January 2, 2022 compared with the quarter ended ~~June 28,~~December 27, 2020

Interest income and other, net ~~increased $23~~decreased $16 million, primarily due to ~~additional gains~~higher net losses from certain investments.

Interest expense decreased $7$5 million, primarily due to lower debt balances attributed to repayments of short-term and current portion of long-term debt balances.

The effective tax rate for the quarter ended June 27, 2021 was 18.2% compared to 16.5% for the same quarter in fiscal 2020. The increase was primarily due to the foreign rate differential on our mix of earnings by tax jurisdictions, as well as a change in the absolute pre-tax operating results when compared to the same period of the prior year. This was partially offset by lapping valuation allowances recorded against deferred tax assets of certain international jurisdictions in the prior year (approximately 840 basis points), a current year remeasurement of deferred tax assets due to an enacted corporate rate change (approximately 510 basis points) and lapping the release of income tax reserves related to the expiration of statute of limitations in the prior year (approximately 330 basis points).

~~For the three quarters ended June 27, 2021 compared with the three quarters ended June 28, 2020~~

Interest income and other, net increased $38 million, primarily due to additional gains from certain investments and net favorable fair value adjustments from non-designated derivatives used to manage our risk of commodity price fluctuations.

~~Interest expense increased $37 million, primarily due to additional interest incurred on long-term debt issued in March 2020 and May 2020.~~

~~Americas~~Table of Contents

North America (1)


		Quarter Ended										Three Quarters Ended											Quarter Ended
		Jun 27, 2021		Jun 28, 2020		$ Change		Jun 27, 2021		Jun 28, 2020		Jun 27, 2021		Jun 28, 2020		$ Change		Jun 27, 2021		Jun 28, 2020			Jan 2, 2022		Dec 27, 2020		$ Change		Jan 2, 2022		Dec 27, 2020
								As a % of Americas Total Net Revenues										As a % of Americas Total Net Revenues											As a % of North America Total Net Revenues
Net revenues:	Net revenues:																					Net revenues:
Company-operated stores	Company-operated stores	$	4,929.8	$	2,568.9	$	2,360.9	91.3	%	91.6	%	$	13,483.1	$	10,903.5	$	2,579.6	91.3	%	89.8	%	Company-operated stores	$	5,214.1	$	4,284.8	$	929.3	91.0	%	91.6	%
Licensed stores	Licensed stores	468.5		235.5		233.0		8.7		8.4		1,278.8		1,237.0		41.8		8.7		10.2		Licensed stores	515.9		388.6		127.3		9.0		8.3
Other	Other	2.0		1.1		0.9		—		—		6.2		5.8		0.4		—		—		Other	2.3		2.2		0.1		—		—
Total net revenues	Total net revenues	5,400.3		2,805.5		2,594.8		100.0		100.0		14,768.1		12,146.3		2,621.8		100.0		100.0		Total net revenues	5,732.3		4,675.6		1,056.7		100.0		100.0
Product and distribution costs	Product and distribution costs	1,416.2		805.6		610.6		26.2		28.7		3,920.0		3,442.2		477.8		26.5		28.3		Product and distribution costs	1,629.4		1,260.6		368.8		28.4		27.0
Store operating expenses	Store operating expenses	2,346.8		2,054.4		292.4		43.5		73.2		6,788.7		6,427.3		361.4		46.0		52.9		Store operating expenses	2,702.4		2,238.8		463.6		47.1		47.9
Other operating expenses	Other operating expenses	39.7		40.7		(1.0)		0.7		1.5		124.4		125.1		(0.7)		0.8		1.0		Other operating expenses	48.2		41.5		6.7		0.8		0.9
Depreciation and amortization expenses	Depreciation and amortization expenses	188.9		191.3		(2.4)		3.5		6.8		563.9		571.9		(8.0)		3.8		4.7		Depreciation and amortization expenses	200.0		188.9		11.1		3.5		4.0
General and administrative expenses	General and administrative expenses	73.2		62.2		11.0		1.4		2.2		221.7		202.8		18.9		1.5		1.7		General and administrative expenses	76.7		70.8		5.9		1.3		1.5
Restructuring and impairments	Restructuring and impairments	19.8		56.2		(36.4)		0.4		2.0		115.0		61.9		53.1		0.8		0.5		Restructuring and impairments	(7.5)		72.2		(79.7)		(0.1)		1.5
Total operating expenses	Total operating expenses	4,084.6		3,210.4		874.2		75.6		114.4		11,733.7		10,831.2		902.5		79.5		89.2		Total operating expenses	4,649.2		3,872.8		776.4		81.1		82.8

Operating income/(loss)		$	1,315.7	$	(404.9)	$	1,720.6	24.4	%	(14.4)	%	$	3,034.4	$	1,315.1	$	1,719.3	20.5	%	10.8	%
Store operating expenses as a % of company-operated store revenues								47.6	%	80.0	%							50.3	%	58.9	%
Operating income																						Operating income	$	1,083.1	$	802.8	$	280.3	18.9	%	17.2	%
Store operating expenses as a % of company-operated stores revenue																						Store operating expenses as a % of company-operated stores revenue							51.8	%	52.2	%

(1)North America licensed stores revenue, total net revenues, product and distribution costs, other operating expenses, total operating expenses and operating income for the quarter ended December 27, 2020, have been restated to conform with current period presentation.

For the quarter ended ~~June 27, 2021~~January 2, 2022 compared with the quarter ended ~~June 28,~~December 27, 2020

~~Americas~~North America total net revenues for the ~~third~~first quarter of fiscal ~~2021~~2022 increased ~~$2.6~~$1.1 billion, or ~~92%~~23%, primarily due to an ~~84%~~18% increase in comparable store sales ($~~2.1 billion)~~762 million) driven by ~~an 82%~~a 12% increase in transactions and a 1%6% increase in average ~~ticket, and the opening of new company-operated stores ($172 million).~~ticket. Also contributing to these increases were ~~higher product and equipment sales to and royalty revenues from our licensees ($231 million), primarily due to lapping~~ the ~~severe impact~~performance of ~~the COVID-19 pandemic in the prior year, and favorable foreign currency translation ($39 million).~~

~~Operating Margin~~

~~Americas operating income for the third quarter of fiscal 2021 was $1.3 billion,~~new stores compared to a loss of $405 million in the third quarter of fiscal 2020. Operating margin increased 3,880 basis points to 24.4%, primarily due to sales leverage from business recovery and lapping higher COVID-19 related costs in the prior year, mainly catastrophe and service pay for store partners, net of temporary subsidies provided by the CARES Act and CEWS (approximately 930 basis points). Also contributing to the margin improvements were lower restructuring expenses (approximately 160 basis points), pricing (approximately 150 basis points) and benefits from the closure of ~~lower-performing~~underperforming stores ~~(approximately 80 basis points). These increases were partially offset by additional investments~~ in ~~retail store partners wages and benefits (approximately 110 basis points) and increased supply chain costs attributed~~prior year including stores related to ~~inflation (approximately 70 basis points).~~

~~For the three quarters ended June 27, 2021 compared with the three quarters ended June 28, 2020~~

~~Americas total net revenues for the first three quarters of fiscal 2021 increased $2.6 billion, or 22% primarily due to a 21% increase in comparable store sales~~our restructuring plan ($2.2 billion) driven by a 16% increase in average ticket and a 4% increase in transactions, and the opening of new company-operated stores ($278 million). Also contributing to these increases were favorable foreign

~~currency translation ($56~~140 million) and higher product and equipment sales to and royalty revenues from our licensees ($41130 million), primarily due to ~~lapping the severe impact of~~business recovery from the COVID-19 ~~pandemic in the prior year.~~pandemic.

~~Americas~~North America operating income for the first ~~three quarters~~quarter of fiscal ~~2021increased 131%~~2022 increased 35% to ~~$3.0~~$1.1 billion, compared to ~~$1.3 billion for~~$803 million in the ~~same period in~~first quarter of fiscal ~~2020.~~2021. Operating margin increased ~~970~~170 basis points to ~~20.5%~~18.9%, primarily due to sales leverage from business ~~recovery, lower COVID-19 related costs, mostly catastrophe and service pay for store partners, net of temporary subsidies provided by~~recovery. Also contributing to the ~~CARES Act and CEWS~~margin improvement was pricing (approximately ~~260~~210 basis points), ~~pricing~~lower restructuring expenses (approximately ~~130~~170 basis points), sourcing savings (approximately 70 basis points) and benefits from the closure of lower-performing stores (approximately 6070 basis points). These increases were partially offset by ~~additional investments~~higher supply chain costs due to inflationary pressures (approximately 240 basis points), enhancements in retail store ~~partners~~partner wages and benefits (approximately ~~220~~190 basis points) and ~~higher restructuring expenses relating~~increased spend on new partner training and support costs to ~~our Americas portfolio optimization~~address labor market conditions (approximately 30130 basis points).

International (1)


		Quarter Ended										Three Quarters Ended											Quarter Ended
		Jun 27, 2021		Jun 28, 2020		$ Change		Jun 27, 2021		Jun 28, 2020		Jun 27, 2021		Jun 28, 2020		$ Change		Jun 27, 2021		Jun 28, 2020			Jan 2, 2022		Dec 27, 2020		$ Change		Jan 2, 2022		Dec 27, 2020
								As a % of International Total Net Revenues										As a % of International Total Net Revenues											As a % of International Total Net Revenues
Net revenues:	Net revenues:																					Net revenues:
Company-operated stores	Company-operated stores	$	1,433.3	$	875.5	$	557.8	86.4	%	92.2	%	$	4,259.7	$	3,087.5	$	1,172.2	86.5	%	84.5	%	Company-operated stores	$	1,508.3	$	1,441.7	$	66.6	80.4	%	85.7	%
Licensed stores	Licensed stores	211.7		65.0		146.7		12.8		6.8		610.2		545.4		64.8		12.4		14.9		Licensed stores	334.9		225.2		109.7		17.9		13.4
Other	Other	13.4		9.1		4.3		0.8		1.0		53.8		22.4		31.4		1.1		0.6		Other	32.7		15.0		17.7		1.7		0.9
Total net revenues	Total net revenues	1,658.4		949.6		708.8		100.0		100.0		4,923.7		3,655.3		1,268.4		100.0		100.0		Total net revenues	1,875.9		1,681.9		194.0		100.0		100.0
Product and distribution costs	Product and distribution costs	501.7		337.7		164.0		30.3		35.6		1,535.6		1,213.9		321.7		31.2		33.2		Product and distribution costs	615.8		536.0		79.8		32.8		31.9
Store operating expenses	Store operating expenses	620.1		483.4		136.7		37.4		50.9		1,868.9		1,653.4		215.5		38.0		45.2		Store operating expenses	697.6		628.5		69.1		37.2		37.4
Other operating expenses	Other operating expenses	38.3		37.5		0.8		2.3		3.9		101.8		105.1		(3.3)		2.1		2.9		Other operating expenses	39.2		35.6		3.6		2.1		2.1
Depreciation and amortization expenses	Depreciation and amortization expenses	129.7		128.5		1.2		7.8		13.5		413.1		385.2		27.9		8.4		10.5		Depreciation and amortization expenses	133.1		140.0		(6.9)		7.1		8.3
General and administrative expenses	General and administrative expenses	92.3		66.1		26.2		5.6		7.0		254.7		196.9		57.8		5.2		5.4		General and administrative expenses	91.3		85.1		6.2		4.9		5.1
Restructuring and impairments		—		(0.2)		0.2		—		—		—		(0.6)		0.6		—		—

Total operating expenses	Total operating expenses	1,382.1		1,053.0		329.1		83.3		110.9		4,174.1		3,553.9		620.2		84.8		97.2		Total operating expenses	1,577.0		1,425.2		151.8		84.1		84.7
Income from equity investees	Income from equity investees	42.0		17.4		24.6		2.5		1.8		95.0		73.1		21.9		1.9		2.0		Income from equity investees	0.7		26.3		(25.6)		—		1.6
Operating income/(loss)		$	318.3	$	(86.0)	$	404.3	19.2	%	(9.1)	%	$	844.6	$	174.5	$	670.1	17.2	%	4.8	%
Store operating expenses as a % of company-operated store revenues								43.3	%	55.2	%							43.9	%	53.6	%
Operating income																						Operating income	$	299.6	$	283.0	$	16.6	16.0	%	16.8	%
Store operating expenses as a % of company-operated stores revenue																						Store operating expenses as a % of company-operated stores revenue							46.3	%	43.6	%

(1)International licensed stores revenue, total net revenues, product and distribution costs, other operating expenses, general and administrative expenses, total operating expenses and operating income for the quarter ended December 27, 2020, have been restated to conform with current period presentation.

For the quarter ended ~~June 27, 2021~~January 2, 2022 compared with the quarter ended ~~June 28,~~December 27, 2020

International total net revenues for the ~~third~~first quarter of fiscal ~~2021~~2022 increased ~~$709~~$194 million, or ~~75%. Company-operated store revenues increased $558 million,~~12%, primarily due to ~~a 41% increase in comparable store sales ($373 million), driven by a 55% increase in transactions, partially offset by a 9% decrease in average ticket. Additionally there were 761~~774 net new ~~stores,~~Starbucks company-operated store openings, or a 12% increase over the past 12 months ($96113 million). ~~Also contributing to the increase in net revenues~~Additionally, there were higher product and equipment sales to and royalty revenues from our licensees ($~~135~~76 million) ~~and favorable~~primarily due to lapping the impact of the COVID-19 pandemic in the prior year. Also contributing to the increase was the conversion of our Korea market from a joint venture to a fully licensed market in the fourth quarter of fiscal 2021 ($39 million). These increases were partially offset by a 3% decline in comparable store sales ($43 million), driven by a 5% decrease in average ticket, partially offset by a 2% increase in transactions, as well as unfavorable foreign currency translation ($9417 million).

International operating income for the ~~third~~first quarter of fiscal ~~2021 was $318~~2022 increased 6% to $300 million, compared to ~~a loss of $86~~$283 million in the ~~third~~first quarter of fiscal ~~2020.~~2021. Operating margin ~~increased 2,830~~decreased 80 basis points to ~~19.2%~~16.0%, primarily due to investments and growth in retail store partner wages and benefits (approximately 150 basis points), strategic investments, largely in China (approximately 110 basis points) and product mix changes (approximately 90 basis points). These decreases were partially offset by sales leverage outside of China driven by lapping the more severe impact of the COVID-19 pandemic in the prior year as well labor efficiencies (approximately 310 basis points). Also contributing to this increase was lower catastrophe pay (approximately 290 basis points), lapping temporary royalty relief provided to licensees in the prior year (approximately 230 basis points) and higher temporary government subsidies (approximately 200 basis points).year.

~~For the three quarters ended June 27, 2021 compared with the three quarters ended June 28, 2020~~

~~International total net revenues for the first three quarters~~Table of fiscal 2021 increased $1.3 billion, or 35%, primarily due to a 21% increase in comparable store sales ($658 million), driven by an 18% increase in transactions and a 3% increase in average ticket. Also contributing to this increase were 761 net new Starbucks® company-operated stores, or a 12% increase, over the past 12 months ($276 million). Additionally, there were favorable foreign currency translation ($258 million) and higher product and equipment sales to and royalty revenues from our licensees ($42 million), primarily due to lapping the severe impact of the COVID-19 pandemic in the prior year.Contents

~~Operating Margin~~

International operating income for the first three quarters of fiscal 2021 increased 384% to $845 million, compared to $175 million for the same period in fiscal 2020. Operating margin increased 1,240 basis points to 17.2%, primarily due to sales leverage driven by lapping the severe impact of the COVID-19 pandemic in the prior year, as well as higher temporary government subsidies (approximately 140 basis points) and labor efficiencies (approximately 140 basis points). Also contributing to this increase was lapping temporary royalty relief provided to licensees in the prior year (approximately 80 basis points).

Channel Development


		Quarter Ended										Three Quarters Ended											Quarter Ended
		Jun 27, 2021		Jun 28, 2020		$ Change		Jun 27, 2021		Jun 28, 2020		Jun 27, 2021		Jun 28, 2020		$ Change		Jun 27, 2021		Jun 28, 2020			Jan 2, 2022		Dec 27, 2020		$ Change		Jan 2, 2022		Dec 27, 2020
								As a % of Channel Development Total Net Revenues										As a % of Channel Development Total Net Revenues											As a % of Channel Development Total Net Revenues
Net revenues	Net revenues	$	414.0	$	447.3	$	(33.3)					$	1,155.3	$	1,461.0	$	(305.7)					Net revenues	$	417.1	$	371.4	$	45.7
Product and distribution costs	Product and distribution costs	268.3		319.9		(51.6)		64.8	%	71.5	%	733.8		1,010.3		(276.5)		63.5	%	69.2	%	Product and distribution costs	258.8		233.5		25.3		62.0	%	62.9	%
Other operating expenses	Other operating expenses	(9.9)		51.4		(61.3)		(2.4)		11.5		14.2		89.7		(75.5)		1.2		6.1		Other operating expenses	11.4		11.1		0.3		2.7		3.0
Depreciation and amortization expenses	Depreciation and amortization expenses	0.2		0.3		(0.1)		—		0.1		0.9		0.9		—		0.1		0.1		Depreciation and amortization expenses	—		0.2		(0.2)		—		0.1
General and administrative expenses	General and administrative expenses	2.9		2.5		0.4		0.7		0.6		7.4		8.0		(0.6)		0.6		0.5		General and administrative expenses	3.3		2.2		1.1		0.8		0.6
Total operating expenses	Total operating expenses	261.5		374.1		(112.6)		63.2		83.6		756.3		1,108.9		(352.6)		65.5		75.9		Total operating expenses	273.5		247.0		26.5		65.6		66.5
Income from equity investees	Income from equity investees	63.5		51.0		12.5		15.3		11.4		170.3		137.2		33.1		14.7		9.4		Income from equity investees	39.6		56.4		(16.8)		9.5		15.2
Operating income	Operating income	$	216.0	$	124.2	$	91.8	52.2	%	27.8	%	$	569.3	$	489.3	$	80.0	49.3	%	33.5	%	Operating income	$	183.2	$	180.8	$	2.4	43.9	%	48.7	%

For the quarter ended ~~June 27, 2021~~January 2, 2022 compared with the quarter ended ~~June 28, 2020~~

Channel Development total net revenues for the third quarter of fiscal 2021 decreased $33 million, or 7%, primarily due to the transition of certain single-serve product activities to Nestlé ($74 million). This was partially offset by higher product sales and royalty revenue in the Global Coffee Alliance ($30 million) and growth in our ready-to-drink business. We expect the impacts from the transition to be substantially completed by the end of fiscal 2021.

~~Operating Margin~~

Channel Development operating income for the third quarter of fiscal 2021 increased 74% to $216 million, compared to $124 million in the third quarter of fiscal 2020. Operating margin increased 2,440 basis points to 52.2%, primarily due to lower Global Coffee Alliance transaction costs, inclusive of lapping certain transition items from prior year (approximately 780 basis points) and a change in estimate relating to a transaction cost accrual (approximately 550 basis points), as well as the transfer of certain single-serve products to Nestlé as part of the Global Coffee Alliance (approximately 700 basis points). Strong performance from our North American Coffee Partnership joint venture also contributed.

~~For the three quarters ended June~~December 27, ~~2021 compared with the three quarters ended June 28,~~ 2020

Channel Development total net revenues for the first ~~three quarters~~quarter of fiscal ~~2021 decreased $306~~2022 increased $46 million, or ~~21%~~12%, primarily due to ~~the transition of certain single-serve product activities to Nestlé ($270 million) and the lapping of~~ higher ~~transition activities related to the~~ Global Coffee Alliance ~~in the prior year~~product sales and royalty revenue ($8031 million)~~. These were partially offset by~~ and volume growth in our ready-to-drink ~~business.~~businesses ($16 million).

Channel Development operating income for the first ~~three quarters~~quarter of fiscal ~~2021~~2022 increased ~~16%~~1% to ~~$569~~$183 million, compared to ~~$489~~$181 million ~~for~~in the ~~same period in~~first quarter of fiscal ~~2020.~~2021. Operating margin ~~increased 1,580~~decreased 480 basis points to ~~49.3%~~43.9%, primarily due to the transfer of certain single-serve products to Nestlé as part of the Global Coffee Alliance (approximately 660 basis points), lower Global Coffee Alliance transaction costs, inclusive of lapping certain transition items from the prior year (approximately 320 basis points), a ~~change~~decline in estimate relating to a transaction cost accrual (approximately 200 basis points) and lapping Global Coffee Alliance transition-related activities (approximately 70 basis points). Strong performance from our North American Coffee Partnership joint venture ~~also contributed.~~income due to supply chain constraints and inflationary pressures as well as a business mix shift.

Corporate and Other(1)


		Quarter Ended								Three Quarters Ended									Quarter Ended
		Jun 27, 2021		Jun 28, 2020		$ Change		% Change		Jun 27, 2021		Jun 28, 2020		$ Change		% Change			Jan 2, 2022		Dec 27, 2020		$ Change		% Change
Net revenues:	Net revenues:																	Net revenues:

Other	Other	$	23.8	$	19.7	$	4.1	20.8	%	$	66.8	$	52.3	$	14.5	27.7	%	Other	$	25.1	$	20.5	$	4.6	22.4	%
Total net revenues	Total net revenues	23.8		19.7		4.1		20.8		66.8		52.3		14.5		27.7		Total net revenues	25.1		20.5		4.6		22.4
Product and distribution costs	Product and distribution costs	19.8		20.8		(1.0)		(4.8)		58.1		51.8		6.3		12.2		Product and distribution costs	22.9		19.0		3.9		20.5

Other operating expenses	Other operating expenses	3.3		4.0		(0.7)		(17.5)		10.4		10.4		—		—		Other operating expenses	2.9		3.6		(0.7)		(19.4)
Depreciation and amortization expenses	Depreciation and amortization expenses	35.5		40.9		(5.4)		(13.2)		109.1		110.3		(1.2)		(1.1)		Depreciation and amortization expenses	32.9		37.0		(4.1)		(11.1)
General and administrative expenses	General and administrative expenses	326.5		269.1		57.4		21.3		947.6		832.9		114.7		13.8		General and administrative expenses	354.5		314.0		40.5		12.9
Restructuring and impairments		—		22.1		(22.1)		nm		—		22.4		(22.4)		nm

Total operating expenses	Total operating expenses	385.1		356.9		28.2		7.9		1,125.2		1,027.8		97.4		9.5		Total operating expenses	413.2		373.6		39.6		10.6

Operating loss	Operating loss	$	(361.3)	$	(337.2)	$	(24.1)	7.1	%	$	(1,058.4)	$	(975.5)	$	(82.9)	8.5	%	Operating loss	$	(388.1)	$	(353.1)	$	(35.0)	9.9	%

(1)Corporate and other general and administrative expenses, total operating expenses and operating loss for the fiscal year ended December 27, 2020, have been restated to conform with current period presentation.

Corporate and Other primarily consists of our unallocated corporate expenses, as well as Evolution Fresh. Unallocated corporate expenses include corporate administrative functions that support the operating segments but are not specifically attributable to or managed by any segment and are not included in the reported financial results of the operating segments.

For the quarter ended ~~June 27, 2021~~January 2, 2022 compared with the quarter ended ~~June 28,~~December 27, 2020

Corporate and Other operating loss increased to $361 million for the third quarter of fiscal 2021, or 7%, compared to $337 million for the third quarter of fiscal 2020. This increase was primarily driven by higher performance-based compensation recognizing the better than expected business recovery ($37 million) and incremental strategic investments in technology ($19 million).

~~For the three quarters ended June 27, 2021 compared with the three quarters ended June 28, 2020~~

~~Corporate and Other operating loss increased to $1,058~~$388 million for the first ~~three quarters~~quarter of fiscal ~~2021,~~2022, or 8%10%, compared to ~~$976~~$353 million for the ~~same period in~~first quarter of fiscal ~~2020.~~2021. This increase was primarily driven by incremental ~~strategic~~ investments in technology ($6722 million) and ~~higher performance-based compensation, recognizing the better than expected business recovery~~increased partner wages and benefits ($579 million).

Quarterly Store Data

Our store data for the periods presented is as follows:


		Net stores opened/(closed) and transferred during the period							Net stores opened/(closed) and transferred during the period
		Quarter Ended		Three Quarters Ended		Stores open as of			Quarter Ended		Stores open as of
		Jun 27, 2021	Jun 28, 2020	Jun 27, 2021	Jun 28, 2020	Jun 27, 2021	Jun 28, 2020		Jan 2, 2022	Dec 27, 2020		Jan 2, 2022	Dec 27, 2020
Americas
North America								North America
Company-operated stores	Company-operated stores	40	(34)	(249)	43	9,860	10,017	Company-operated stores	39	(80)		9,900	10,029
Licensed stores	Licensed stores	15	(2)	70	125	8,315	8,218	Licensed stores	23	30		6,988	6,861
Total Americas		55	(36)	(179)	168	18,175	18,235
Total North America (1)								Total North America (1)	62	(50)		16,888	16,890
International	International							International
Company-operated stores	Company-operated stores	177	117	485	394	7,013	6,254	Company-operated stores	213	185		7,485	6,713
Licensed stores	Licensed stores	120	49	329	362	8,107	7,691	Licensed stores	209	143		9,944	9,335
Total International(1)	Total International(1)	297	166	814	756	15,120	13,945	Total International(1)	422	328		17,429	16,048

Total Company	Total Company	352	130	635	924	33,295	32,180	Total Company	484	278		34,317	32,938

(1)North America and International licensed stores as of December 27, 2020, have been recast as a result of our fiscal 2021 operating segment reporting structure realignment.

Financial Condition, Liquidity and Capital Resources

Our cash and investments totaled ~~$5.2~~$4.4 billion as of ~~June 27, 2021~~January 2, 2022 and ~~$4.8~~$6.9 billion as of ~~September 27, 2020.~~October 3, 2021. We actively manage our cash and investments in order to internally fund operating needs, make scheduled interest and principal payments on our borrowings, make acquisitions and return cash to shareholders through common stock cash dividend payments and share repurchases. Our investment portfolio primarily includes highly liquid available-for-sale securities, including corporate debt securities, government treasury securities (foreign and domestic) and commercial paper. As of ~~June 27, 2021,~~January 2, 2022, approximately ~~$2.5~~$3.0 billion of cash was held in foreign subsidiaries.

~~The 2018 credit facility~~Revolving Credit Facility

Our ~~$2.0~~$3 billion unsecured ~~5-year~~five-year revolving credit facility ~~("the 2018~~(the "2021 credit facility"), of which $150 million may be used for issuances of letters of credit, is currently set to mature on ~~October 25, 2022.~~September 16, 2026. The 2021 credit facility is available for working capital, capital expenditures and other corporate purposes, including acquisitions and share repurchases. We have the option, subject to negotiation and agreement with the related banks, to increase the maximum commitment amount by an additional ~~$500 million.~~ $1.0 billion.

Borrowings under the 2021 credit facility ~~are subject to terms defined within the 2018 credit facility and~~ will bear interest at a variable rate based on LIBOR, and, for U.S. dollar-denominated loans under certain circumstances, a Base Rate (as defined in the 2021 credit facility), in each case plus an applicable margin. The applicable margin is based on the ~~better of (i) the Company's~~Company’s long-term credit ratings assigned by ~~Moody's~~the Moody’s and Standard & ~~Poor's~~Poor’s rating ~~agencies~~agencies. The 2021 credit facility contains alternative interest rate provisions specifying rate calculations to be used at such time LIBOR ceases to be available as a benchmark due to reference rate reform. The “Base Rate” is the highest of (i) the Federal Funds Rate (as defined in the 2021 credit facility) plus 0.025%, (ii) Bank of America’s prime rate and ~~(ii)~~(iii) the ~~Company's~~Eurocurrency Rate (as defined in the 2021 credit facility) plus 1.025%.

The 2021 credit facility contains provisions requiring us to maintain compliance with certain covenants, including a minimum fixed charge coverage ratio, ~~pursuant~~which measures our ability to a pricing grid set forth in the five-year credit agreement. The current applicable margin is 1.100% for Eurocurrency Rate Loans and 0.100% for Base Rate Loans. The 2018 credit facility is available for general corporate purposes.cover financing expenses. As of ~~June 27, 2021,~~January 2, 2022, we ~~had no borrowings under the 2018 credit facility.~~

~~The 364-day credit facility~~

Our $1.0 billion unsecured 364-day credit facility (the "364-day credit facility"), of which no amount may be used for issuances of letters of credit, is currently set to mature on September 22, 2021. We have the option, subject to negotiation and agreement with the related banks, to increase the maximum commitment amount by an additional $500 million. Borrowings under the credit facility are subject to terms defined within the 364-day credit facility and will bear interest at a variable rate based on LIBOR, and, for U.S. dollar-denominated loans under certain circumstances, a Base Rate, in each case plus an applicable margin. The applicable margin is based on the better of (i) the Company's long-term credit ratings assigned by Moody's and Standard & Poor's rating agencies and (ii) the Company's fixed charge coverage ratio, pursuant to a pricing grid set forth in the 364-day credit agreement. The applicable margin is 1.150% for Eurocurrency Rate Loans and 0.150% for Base Rate Loans. The 364-day credit facility is available for general purposes. As of June 27, 2021, we had no borrowings under the 364-day credit facility.

Due to the financial impacts from COVID-19, we reached an agreement with our lenders to amend the fixed charge coverage ratio covenant for our combined $3 billion revolving lines of credit, through the fourth quarter of fiscal 2021. Given the

~~recovery in our cash flows, we are currently~~were in compliance with ~~the covenant prior to the amendment and expect~~all applicable covenants. No amounts were outstanding under our ~~continued compliance upon the amendment expiration at the end~~2021 credit facility as of ~~fiscal~~January 2, 2022 or October 3, 2021.

Under our commercial paper program, we may issue unsecured commercial paper notes up to a maximum aggregate amount outstanding at any time of $3.0 billion, with individual maturities that may vary but not exceed 397 days from the date of issue. Amounts outstanding under the commercial paper program are required to be backstopped by available commitments under the ~~2018 and 364-day~~2021 credit ~~facilities~~facility discussed above. The proceeds from borrowings under our commercial paper program may be used for working capital needs, capital expenditures and other corporate purposes, including, but not limited to, business expansion, payment of cash dividends on our common stock and share repurchases. As of ~~June 27, 2021,~~January 2, 2022, we had no $200.0 million

borrowings outstanding under our commercial paper program. ~~As such, as of the end of our third quarter of fiscal 2021, our~~Our total contractual borrowing capacity for general corporate purposes ~~inclusive~~was $2.8 billion as of ~~all available capacity under~~the end of our ~~credit facilities (consisting~~first quarter of ~~$2.0 billion under the 2018 credit facility and $1.0 billion under the 364-day credit facility) and the unused commercial paper program was $3.0 billion.~~fiscal 2022.

Credit facilities in Japan

Additionally, we hold Japanese yen-denominated credit facilities for the use of our Japan subsidiary. These are available for working capital needs and capital expenditures within our Japanese market.

As of ~~June 27, 2021,~~January 2, 2022, we had no borrowings outstanding under these Japanese yen-denominated credit facilities.

Our ability to incur new liens and conduct sale and leaseback transactions on certain material properties is subject to compliance with terms of the indentures under which the ~~Senior Notes~~long-term notes were issued. As of ~~June 27, 2021,~~January 2, 2022, we were in compliance with all applicable covenants.

We expect to use our available cash and investments, including, but not limited to, additional potential future borrowings under the credit facilities, commercial paper program and the issuance of debt to support and invest in our core businesses, including investing in new ways to serve our customers and supporting our store partners, repaying maturing debts, as well as returning cash to shareholders through common stock cash dividend payments and discretionary share repurchases and investing in new business opportunities related to our core and developing businesses. ~~Further,~~Furthermore, we may use our available cash resources to make proportionate capital contributions to our investees. We may also seek strategic acquisitions to leverage existing capabilities and further build our business in support of our “Growth at Scale” agenda. Acquisitions may include increasing our ownership interests in our investees. Any decisions to increase such ownership interests will be driven by valuation and fit with our ownership strategy.

We believe that net future cash flows generated from operations and existing cash and investments both domestically and internationally combined with our ability to leverage our balance sheet through the issuance of debt will be sufficient to finance capital requirements for our core businesses as well as shareholder distributions for the foreseeable future. Significant new joint ventures, acquisitions and/or other new business opportunities may require additional outside funding. We have borrowed funds and continue to believe we have the ability to do so at reasonable interest rates; however, additional borrowings would result in increased interest expense in the future. In this regard, we may incur additional debt, within targeted levels, as part of our plans to fund our capital programs, including cash returns to shareholders through future dividends and discretionary share repurchases. ~~To further strengthen our liquidity in the near term,~~If necessary, we ~~currently expect the suspension~~may pursue additional sources of ~~share repurchases to continue for the remainder of fiscal 2021.~~financing, including both short-term and long-term borrowings and debt issuances.


Washington			91-1325671
(State or Other Jurisdiction of Incorporation or Organization)			(IRS Employer Identification No.)


Title	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $0.001 per share	SBUX	Nasdaq Global Select Market



PART I. FINANCIAL INFORMATION

Item 1	Financial Statements (Unaudited):	3
	Consolidated Statements of Earnings	3
	Consolidated Statements of Comprehensive Income	4
	Consolidated Balance Sheets	5
	Consolidated Statements of Cash Flows	6
	Consolidated Statements of Equity	7
	Index for Notes to Consolidated Financial Statements	98
	Notes to Consolidated Financial Statements	109
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	3127
Item 3	Quantitative and Qualitative Disclosures About Market Risk	4436
Item 4	Controls and Procedures	4436

PART II. OTHER INFORMATION

Item 1	Legal Proceedings	4538
Item 1A	Risk Factors	4538
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	4538
Item 3	Defaults Upon Senior Securities	39
Item 4	Mine Safety Disclosures	39
Item 5	Other Information	39
Item 6	Exhibits	4640
Signatures		4741


				Fair Value Measurements at Reporting Date Using									Fair Value Measurements at Reporting Date Using
		Balance at June 27, 2021		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Balance at January 2, 2022		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:	Assets:									Assets:
Cash and cash equivalents	Cash and cash equivalents	$	4,753.1	$	4,753.1	$	0	$	0	Cash and cash equivalents	$	3,969.4	$	3,969.4	$	—	$	—
Short-term investments:	Short-term investments:									Short-term investments:
Available-for-sale debt securities	Available-for-sale debt securities									Available-for-sale debt securities

Commercial paper	Commercial paper	57.0		0		57.0		0		Commercial paper	3.5		—		3.5		—
Corporate debt securities	Corporate debt securities	22.1		0		22.1		0		Corporate debt securities	4.8		—		4.8		—

Mortgage and other asset-backed securities										Mortgage and other asset-backed securities	0.1		—		0.1		—

Total available-for-sale debt securities	Total available-for-sale debt securities	79.1		0		79.1		0		Total available-for-sale debt securities	8.4		—		8.4		—
Marketable equity securities	Marketable equity securities	74.5		74.5		0		0		Marketable equity securities	79.0		79.0		—		—
Total short-term investments	Total short-term investments	153.6		74.5		79.1		0		Total short-term investments	87.4		79.0		8.4		—
Prepaid expenses and other current assets:	Prepaid expenses and other current assets:									Prepaid expenses and other current assets:
Derivative assets	Derivative assets	76.8		63.2		13.6		0		Derivative assets	154.4		123.6		30.8		—
Long-term investments:	Long-term investments:									Long-term investments:
Available-for-sale debt securities	Available-for-sale debt securities									Available-for-sale debt securities

Auction rate securities		5.8		0		0		5.8

Corporate debt securities	Corporate debt securities	164.0		0		164.0		0		Corporate debt securities	148.1		—		148.1		—
Foreign government obligations	Foreign government obligations	4.0		0		4.0		0		Foreign government obligations	4.0		—		4.0		—
Mortgage and other asset-backed securities	Mortgage and other asset-backed securities	25.1		0		25.1		0		Mortgage and other asset-backed securities	59.9		—		59.9		—
State and local government obligations	State and local government obligations	1.5		0		1.5		0		State and local government obligations	1.4		—		1.4		—
U.S. government treasury securities	U.S. government treasury securities	85.5		85.5		0		0		U.S. government treasury securities	86.2		86.2		—		—
Total long-term investments	Total long-term investments	285.9		85.5		194.6		5.8		Total long-term investments	299.6		86.2		213.4		—
Other long-term assets:	Other long-term assets:									Other long-term assets:
Derivative assets	Derivative assets	83.6		0		83.6		0		Derivative assets	98.0		—		98.0		—
Total assets	Total assets	$	5,353.0	$	4,976.3	$	370.9	$	5.8	Total assets	$	4,608.8	$	4,258.2	$	350.6	$	—
Liabilities:	Liabilities:									Liabilities:
Accrued liabilities:	Accrued liabilities:									Accrued liabilities:
Derivative liabilities	Derivative liabilities	$	17.6	$	1.1	$	16.5	$	0	Derivative liabilities	$	11.5	$	4.0	$	7.5	$	—
Other long-term liabilities:	Other long-term liabilities:									Other long-term liabilities:
Derivative liabilities	Derivative liabilities	16.5		0		16.5		0		Derivative liabilities	5.9		—		5.9		—
Total liabilities	Total liabilities	$	34.1	$	1.1	$	33.0	$	0	Total liabilities	$	17.4	$	4.0	$	13.4	$	—


				Fair Value Measurements at Reporting Date Using									Fair Value Measurements at Reporting Date Using
		Balance at September 27, 2020		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Balance at October 3, 2021		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:	Assets:									Assets:
Cash and cash equivalents	Cash and cash equivalents	$	4,350.9	$	4,350.9	$	0	$	0	Cash and cash equivalents	$	6,455.7	$	6,455.7	$	—	$	—
Short-term investments:	Short-term investments:									Short-term investments:
Available-for-sale debt securities	Available-for-sale debt securities									Available-for-sale debt securities
Certificates of deposit		1.6		0		1.6		0

Commercial paper	Commercial paper	66.8		0		66.8		0		Commercial paper	63.0		—		63.0		—
Corporate debt securities	Corporate debt securities	123.6		0		123.6		0		Corporate debt securities	24.7		—		24.7		—
Foreign government obligations		8.5		0		8.5		0

Mortgage and other asset-backed securities	Mortgage and other asset-backed securities	15.8		0		15.8		0		Mortgage and other asset-backed securities	0.1		—		0.1		—
Total available-for-sale debt securities	Total available-for-sale debt securities	216.3		0		216.3		0		Total available-for-sale debt securities	87.8		—		87.8		—
Marketable equity securities	Marketable equity securities	64.9		64.9		0		0		Marketable equity securities	74.4		74.4		—		—
Total short-term investments	Total short-term investments	281.2		64.9		216.3		0		Total short-term investments	162.2		74.4		87.8		—
Prepaid expenses and other current assets:	Prepaid expenses and other current assets:									Prepaid expenses and other current assets:
Derivative assets	Derivative assets	15.6		3.6		12.0		0		Derivative assets	147.6		131.1		16.5		—
Long-term investments:	Long-term investments:									Long-term investments:
Available-for-sale debt securities	Available-for-sale debt securities									Available-for-sale debt securities

Auction rate securities	Auction rate securities	5.7		0		0		5.7		Auction rate securities	6.0		—		—		6.0

Corporate debt securities	Corporate debt securities	82.6		0		82.6		0		Corporate debt securities	162.0		—		162.0		—

Foreign government obligations										Foreign government obligations	4.0		—		4.0		—
Mortgage and other asset-backed securities	Mortgage and other asset-backed securities	19.3		0		19.3		0		Mortgage and other asset-backed securities	31.9		—		31.9		—
State and local government obligations	State and local government obligations	3.6		0		3.6		0		State and local government obligations	1.5		—		1.5		—
U.S. government treasury securities	U.S. government treasury securities	94.9		94.9		0		0		U.S. government treasury securities	76.3		76.3		—		—
Total long-term investments	Total long-term investments	206.1		94.9		105.5		5.7		Total long-term investments	281.7		76.3		199.4		6.0
Other long-term assets:	Other long-term assets:									Other long-term assets:
Derivative assets	Derivative assets	87.3		0		87.3		0		Derivative assets	84.3		—		84.3		—
Total assets	Total assets	$	4,941.1	$	4,514.3	$	421.1	$	5.7	Total assets	$	7,131.5	$	6,737.5	$	388.0	$	6.0
Liabilities:	Liabilities:									Liabilities:
Accrued liabilities:	Accrued liabilities:									Accrued liabilities:
Derivative liabilities	Derivative liabilities	$	7.3	$	1.9	$	5.4	$	0	Derivative liabilities	$	8.6	$	0.3	$	8.3	$	—
Other long-term liabilities:	Other long-term liabilities:									Other long-term liabilities:
Derivative liabilities	Derivative liabilities	79.3		0.1		79.2		0		Derivative liabilities	8.2		—		8.2		—
Total liabilities	Total liabilities	$	86.6	$	2.0	$	84.6	$	0	Total liabilities	$	16.8	$	0.3	$	16.5	$	—


Note 1	Summary of Significant Accounting Policies and Estimates	109

Note 2	Derivative Financial Instruments	1211
Note 3	Fair Value Measurements	1714
Note 4	Inventories	1916
Note 5	Supplemental Balance Sheet and Statement of Earnings Information	1916
Note 6	Other Intangible Assets and Goodwill	2017
Note 7	Debt	2119
Note 8	Leases	2320
Note 9	Deferred Revenue	2421
Note 10	Equity	2623
Note 11	Employee Stock Plans	2723

Note 12	~~Income Taxes~~Earnings per Share	2824
Note 13	~~Earnings/(Loss) per Share~~	28
~~Note 14~~	Commitments and Contingencies	2824
Note 1514	Segment Reporting	2925
~~Note 16~~	~~Subsequent Event~~	30


			Gains/(Losses) Recognized in Earnings										Gains/(Losses) Recognized in Earnings
		Location of gain/(loss) recognized in earnings	Quarter Ended				Three Quarters Ended					Location of gain/(loss) recognized in earnings	Quarter Ended
			Jun 27, 2021		Jun 28, 2020		Jun 27, 2021		Jun 28, 2020				Jan 2, 2022		Dec 27, 2020
Non-Designated Derivatives:	Non-Designated Derivatives:										Non-Designated Derivatives:
Dairy		Interest income and other, net	$	0	$	(1.7)	$	0	$	(1.6)

Foreign currency - other											Foreign currency - other	Interest income and other, net	$	10.2	$	(0.8)
Coffee											Coffee	Interest income and other, net	3.1		—
Diesel fuel and other commodities	Diesel fuel and other commodities	Interest income and other, net	0.7		(0.8)		2.7		(8.7)		Diesel fuel and other commodities	Interest income and other, net	—		1.2
Foreign currency - other		Interest income and other, net	4.5		(5.0)		2.8		3.3
Fair Value Hedges:	Fair Value Hedges:										Fair Value Hedges:
Interest rate swap	Interest rate swap	Interest expense	(0.3)		3.9		(1.4)		28.3		Interest rate swap	Interest expense	(4.8)		0.4
Long-term debt (hedged item)	Long-term debt (hedged item)	Interest expense	3.6		(3.1)		11.3		(26.4)		Long-term debt (hedged item)	Interest expense	8.2		2.9


			Derivative Assets						Derivative Assets
		Balance Sheet Location	Jun 27, 2021		Sep 27, 2020			Balance Sheet Location	Jan 2, 2022		Oct 3, 2021
Designated Derivative Instruments:	Designated Derivative Instruments:						Designated Derivative Instruments:
Coffee	Coffee	Prepaid expenses and other current assets	$	63.0	$	2.6	Coffee	Prepaid expenses and other current assets	$	90.8	$	130.5

Cross-currency swaps	Cross-currency swaps	Other long-term assets	48.0		37.7		Cross-currency swaps	Other long-term assets	70.8		54.7
Dairy	Dairy	Prepaid expenses and other current assets	0.3		2.1		Dairy	Prepaid expenses and other current assets	5.5		0.8

Foreign currency - other	Foreign currency - other	Prepaid expenses and other current assets	7.2		8.6		Foreign currency - other	Prepaid expenses and other current assets	9.5		8.9
		Other long-term assets	5.1		3.8			Other long-term assets	8.7		6.9
Interest rates		Other long-term assets	2.9		0
Interest rate swap		Other long-term assets	27.6		45.8

Interest rate swaps							Interest rate swaps	Other long-term assets	18.5		22.7
Non-designated Derivative Instruments:	Non-designated Derivative Instruments:						Non-designated Derivative Instruments:
Coffee							Coffee	Prepaid expenses and other current assets	29.8		—
Dairy	Dairy	Prepaid expenses and other current assets	0.1		0		Dairy	Prepaid expenses and other current assets	0.6		—
Diesel fuel and other commodities	Diesel fuel and other commodities	Prepaid expenses and other current assets	0.5		0		Diesel fuel and other commodities	Prepaid expenses and other current assets	0.1		0.1
Foreign currency	Foreign currency	Prepaid expenses and other current assets	5.7		2.3		Foreign currency	Prepaid expenses and other current assets	18.1		7.3

			Derivative Liabilities						Derivative Liabilities
		Balance Sheet Location	Jun 27, 2021		Sep 27, 2020			Balance Sheet Location	Jan 2, 2022		Oct 3, 2021
Designated Derivative Instruments:	Designated Derivative Instruments:						Designated Derivative Instruments:
Coffee	Coffee	Accrued liabilities	$	0	$	1.4	Coffee	Accrued liabilities	$	3.1	$	—
		Other long-term liabilities	0		0.1
Cross-currency swaps	Cross-currency swaps	Other long-term liabilities	3.7		7.3		Cross-currency swaps	Other long-term liabilities	2.1		3.3
Dairy	Dairy	Accrued liabilities	2.1		1.4		Dairy	Accrued liabilities	1.3		0.9
Foreign currency - other	Foreign currency - other	Accrued liabilities	14.5		1.6		Foreign currency - other	Accrued liabilities	5.5		7.4
		Other long-term liabilities	9.5		2.6			Other long-term liabilities	3.2		3.6
Interest rates	Interest rates	Other long-term liabilities	3.3		69.3		Interest rates	Other long-term liabilities	0.6		1.3

Non-designated Derivative Instruments:	Non-designated Derivative Instruments:						Non-designated Derivative Instruments:
Dairy	Dairy	Accrued liabilities	0.3		0		Dairy	Accrued liabilities	0.2		0.2
Diesel fuel and other commodities	Diesel fuel and other commodities	Accrued liabilities	0		1.7		Diesel fuel and other commodities	Accrued liabilities	0.1		—
Foreign currency	Foreign currency	Accrued liabilities	0.7		1.2		Foreign currency	Accrued liabilities	1.3		0.1


		Carrying amount of hedged item				Cumulative amount of fair value hedging adjustment included in the carrying amount					Carrying amount of hedged item				Cumulative amount of fair value hedging adjustment included in the carrying amount
		Jun 27, 2021		Sep 27, 2020		Jun 27, 2021		Sep 27, 2020			Jan 2, 2022		Oct 3, 2021		Jan 2, 2022		Oct 3, 2021
Location on the balance sheet	Location on the balance sheet									Location on the balance sheet
Long-term debt	Long-term debt	$	774.4	$	785.6	$	24.4	$	35.6	Long-term debt	$	763.5	$	771.7	$	13.5	$	21.7


(in millions)	(in millions)	Jun 27, 2021		Sep 27, 2020		(in millions)	Jan 2, 2022		Oct 3, 2021
Trade names, trademarks and patents	Trade names, trademarks and patents	$	96.0	$	95.0	Trade names, trademarks and patents	$	96.8	$	96.4


	Quarter Ended Jun 27, 2021			Three Quarters Ended Jun 27, 2021
	Change in Comparable Store Sales	Change in Transactions	Change in Ticket	Change in Comparable Store Sales	Change in Transactions	Change in Ticket
Consolidated	73%	75%	(1)%	21%	7%	13%
Americas	84%	82%	1%	21%	4%	16%
International	41%	55%	(9)%	21%	18%	3%


	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2)	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs(3)
Period (1)
October 4, 2021 - October 31, 2021	—	$	—	—	48,904,441
November 1, 2021 - November 28, 2021	14,500,000	112.43		14,500,000	34,404,441
November 29, 2021 - January 2, 2022	16,625,000	113.72		16,625,000	17,779,441
Total	31,125,000	$	113.12	31,125,000


		Incorporated by Reference
Exhibit No.	Exhibit Description	Form	File No.	Date of Filing	Exhibit Number	Filed Herewith
3.1	Restated Articles of Incorporation of Starbucks Corporation	10-Q	0-20322	04/28/2015	3.1
3.2	Amended and Restated Bylaws of Starbucks Corporation (As amended and restated through March 17, 2021)	8-K	0-20322	03/19/2021	3.1
31.1	Certification of Principal Executive Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	—	—	—	—	X
31.2	Certification of Principal Financial Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	—	—	—	—	X
32*	Certifications of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	—	—	—	—	—
101	The following financial statements from the Company's 10-Q for the fiscal quarter ended June 27, 2021, formatted in iXBRL: (i) Consolidated Statements of Earnings, (ii) Consolidated Statements of Comprehensive Income, (iii) Consolidated Balance Sheets, (iv) Consolidated Statements of Cash Flows, (v) Consolidated Statements of Equity and (vi) Notes to Consolidated Financial Statements	—	—	—	—	X
104	Cover Page Interactive Data File (formatted in iXBRL and contained in Exhibit 101)	—	—	—	—	X


			STARBUCKS CORPORATION

			By:						/s/ Rachel Ruggeri
									Rachel Ruggeri
									executive vice president, chief financial officer
									Signing on behalf of the registrant and as principal financial officer