Discuss the relationship between net income and cash flow from operations for each of the three years. Discuss the relationship between cash flows from operating,
Discuss the relationship between net income and cash flow from operations for each of the three years.
Discuss the relationship between cash flows from operating, investing, and financing activities for each of the three years.
EXHIBIT 2 Starbucks Corporation Consolidated Balance Sheets (amounts in millions) Sep, 30 Sep, 29 Sep, 27 Oct, 3 2018 2019 2020 2021 Assets Current assets: Cash and cash equivalents $ 8,756.30 $ 2.686.60 $ 4,350.90 $ 6,455.70 Short-term investments 181.50 70.50 281.20 162.20 Accounts receivable, net 693.10 879.20 883.40 940.00 Inventories 1,400.50 1.529.40 1,551.40 1.603.90 Prepaid expenses and other current assets 1,462.80 488.20 739.50 594.60 Deferred income taxes,net Total current assets $ 12,494.2 $ 5,653.9 $ 7,806.4 $ 9,756.4 Long-term investments - available-for-sale securities 267.70 220.00 206.10 281.70 Equity and cost investments 334.70 396.00 478.70 268.50 Property, plant, and equipment, net 5.929.10 6.431.70 6.241.40 6.369.50 Operating Lease, Right of Use 8.134.10 8.236.00 Deferred income taxes, net 134.70 1.765.80 1,789.90 1.874.80 Other assets 412.20 479.60 568.60 578.50 Other intangible assets 1,042.20 781.80 552.10 349.90 Goodwill 3,541.60 3,490.80 3,597.20 3,677.30 Total non-current assets $ 11,662.2 $ 13,565.7 $ 21,568.1 $21,636.20 Total Assets $ 24, 156.4 $ 19,219.6 $ 29,374.5 $31,392.60 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 1,179.30 $ 1.189.70 $ 997.90 $ 1.211.60 Accrued liabilities (including compensation & occupancy) 2.298.40 2.418.30 1856.7 2.745.50 Income taxes payable 213.70 1.291.70 98.20 348.00 1.248.80 1.251.30 Deferred revenue 1,642.90 1,269.00 1,456.50 1,596.10 Short-term Debt 438.80 Current portion of long-term debt 349.9 1.249.9 998.90 Total current liabilities $ 5.684.2 $ 6.168.7 $ 7.346.8 $ 8,151.4 Long-term debt 9.090.20 11.167.00 $14.659.60 13.616.90 Operating Lease Liability $ 7,661.00 7,738.00 Other long term liabilities 8,206.2 8,114.9 $ 7,505.80 7 200.80 Total liabilities $ 22.980.6 $ 25,450.6 $ 37.173.2 $ 36,707.1 Shareholders' equity. Common Stock 1.30 1.20 1.20 1.20 Additional paid-in capital 41.10 41.10 373.90 846.10 Retained earnings 1,457.40 (5,771.20) (7,815.60) (6,315.70) Accumulated other comprehensive income (330.3) (503.3) (364.60) 147.20 Total shareholders' equity $ 1,169.5 $ (6,232.2) $ (7,805.1) $ (5,321.2) Noncontrolling interests 6.30 1.20 5.70 6.70 Total equity $ 1,175.8 $ (6.231.0) $ (7,799.4) $ (5.314.5) Total Liabilities and Shareholders' Equity $ 24 156.4 $ 19,219.6 $ 29,373.8 $ 31,392.6EXHIBIT 1 Starbucks Corporation Consolidated Statements of Earnings (amounts in millions) Sep, 30 Sep, 29 Sep, 27 Oct, 3 Fiscal Year Ended 2018 2019 2020 2021 Net revenues: Company-operated stores $ 19,690.3 $21,544.4 $19, 164.6 $24,607.00 Licensed stores 2,652.2 2,875.0 $2,327.1 2,683.60 CPG, foodservice and other 2,377.0 2.089.2 $2,026.3 1,770.00 Total net revenues $24 719.5 $26,508.6 $ 23,518.0 $ 29,060.6 Cost of sales including occupancy costs $ 10, 174.5 $ 8,526.9 $ 7,694.9 8,738.70 Store operating expenses 7,193.2 10,493.6 10,764.0 11,930.90 Other operating expenses 539.3 371.0 430.3 359.50 Depreciation and amortization expenses ,247.0 1,377.3 1,431.3 1,441.70 General and administrative expenses 1,759.0 1,824.1 1,680 1,932.60 Restructuring and impairments 224.4 135.8 279 170.40 Total operating expenses $21,137.4 $ 22,728.7 $ 22,278.8 $ 24,573.8 Gain on sale of properties $ $ Income from equity investees 301.20 $ 298.00 S 322.50 385.30 Operating income (loss) $ 3,883.3 $ 4,077.9 $ 1,561.7 $ 4,872.1 Gain resulting from acquisition of joint venture $ 1,376.4 $ $ Loss on extinguishment of debt 499.2 S 622.8 $ S 864.50 Interest income and other, net 191.4 96.5 39.7 90.10 Interest expense (170.3) (331.0) (437.0) (469.80) Earnings (loss) before income taxes $ 5,780.0 $ 4,466.2 $ 1,164.4 $ 5,356.9 Income taxes (benefit) 1,262.0 871.6 239.7 1,156.60 Net earnings including non-controlling interests $ 4,518.0 $ 3,594.6 $ 924.7 $ 4,200.3 Net earnings (loss) attributable to noncontrolling interests (0.3) (4.6) 3.6) 1.0 Net earnings attributable to Starbucks $ 4,518.3 $ 3,599.2 928.3 $ 4.199.3 Earnings per share - basic 3.27 $ 2.95 $ 0.79 $ 3.57 Earnings per share - diluted 3.24 2.92 0.79 3.54 Weighted average shares outstanding Basic 1,382.7 1,221.2 1,172.8 1,177.60 Diluted ,394.6 1,233.2 1,181.8 1,185.50 Cash dividends declared per share 1.32 $ 1.49 1.68 1.84 September 30 stock price (rounded to nearest $) 57 88 86 110EXHIBIT 3 Starbucks Corporation Consolidated Statements of Cash Flows (amounts in millions) Sep, 29 Sep, 27 Oct, 3 Fiscal Year Ended 2019 2020 2021 Operating Activities: Net earnings including noncontrolling interests $ 3.504.60 $ 924.70 $4.200.30 Adjustments to reconcile net earnings to net cash provided by operating activities Depreciation and amortization 1.449.30 1,503.20 1,524.10 Deferred income taxes,net (1.495.40) (25.80) (146.20 Income earned from equity method investees (250.60) 280.70) (347.30) Distributions received from equity method investees 216.80 227.70 338.00 Gain resulting from acquisition of joint venture Net gain resulting from divestiture of certain retail operations (622.80) - (884.50) Loss on extinguishment of debt Stock-based compensation 308.00 248.60 310.10 Goodwill Impairments 10.50 Non-cash Lease cost 1,197.6 1,248.80 Loss on retirement and impairment of assets 226.20 Other 187.9 478.9 (6.00) Cash provided/(used) by changes in operating assets and liabilities Accounts receivable (197.70) (2.70) (43.00) Inventories (173.00) (10.90) (49.80) Accounts payable 31.20 (210.80) 189.90 Deferred revenue (30.50) 31.00 (6.10) Operating Lease Liability (1,231.40) (1,488.10) Prepaid expenses, other current assets and other assets 2.018.0 (1,251.60) 805.90 Net cash provided by operating activities $ 5.047 0 $ 1,507.8 $ 5,989.1 Investing Activities: Purchase of investments (180.40) (443.90) (432.00) Sales of investments 208.30 186.70 143.20 Maturities and calls of investments 59.80 73.70 345.50 Acquisitions, net of cash acquired Additions to property. plant and equipment (1 806.60) (1,483.60) (1,470.00) Proceeds from sale of equity in joint ventures and certain retail operations 684.30 1.175.00 Other (56.20) (44.40 (81.20) Net cash used by investing activities $ (1 010.8) $ (1,711.5) $ (310.5) Financing Activities: Repayments of commercial paper (208.50) Proceeds from issuance of Short-term debt 1,406.60 215.10 Repayment of short-term debt (987.70) (349.80) Proceeds from issuance of long-term debt 1.906.00 4,727.70 Principal payments on long-term debt (350.00) 1,250.00) Proceeds from issuance of common stock 409.80 298.80 246.20 Cash dividends paid (1.761.30) (1,923.50) (2.1 19.00) Repurchase of common stock (10.222.30) (1.698.90) Minimum tax withholdings on share-based awards (111.60) (91.80) (97.00) Other (17.50) (37.70) Net cash used by financing activities $ (10.056 0) $ 1,713.4 5 (3,851.0) Effect of exchange rate changes on cash and cash equivalents (49.0) 64.70 86.20 Net increase/(decrease) in cash and cash equivalents $ (8.060 7) $ 1,864.4 $ 2,104.8 Cash and Cash Equivalents Beginning of period 8.756.30 2,686.60 4,350.90 End of period $ 2,686.6 $ 4,351.0 $ 6,455.7 Supplemental Disclosure of Cash Flow Information Cash paid during the period for. Interest, net of capitalized interest 209.5 $ 308.9 $ 501.10 Income taxes 470.1 5 1,809.1 $ 756.30
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