Item 8. Financial Statements and Supplementary Data STARBUCKS CORPORATION STARBUCKS CORPORATION Starbucks Corporation 2018 Form 10-K CONSOLIDATED BALANCE SHEETS CONSOLIDATED STATEMENTS OF EARNINGS (in millions, except per share data) (in millions, except per share data) 2018 2017 Fiscal Year Ended 2017 Oct 2, 2016 STARBUCKS CORPORATION ASSETS Net revenues: CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Current assets: (in millions) Cash and cash equivalents 8,756.3 $ 2,462.3 Company-operated stores 19,690.3 $ 17,650.7 $ 16,844.1 Short-term investments 181.5 228.6 Licensed stores 2,652.2 2,355.0 2,154.2 2018 Jet 1, 2016 Accounts receivable, net 693.1 870.4 Other 2,377.0 2,381.1 2,317.6 Fiscal Year Ended Inventories 1,400.5 1,364.0 Total net revenues 24,719.5 22,386.8 21,315.9 Net earnings including noncontrolling interests 4,518.0 $ 2,884.9 $ 2,818.9 Prepaid expenses and other current assets 1,462.8 358.1 Cost of sales including occupancy costs 0,174.5 ,034.3 8,509.0 Other comprehensive income/(loss), net of tax: Total current assets 12,494.2 5,283.4 Store operating expenses 7,193.2 6,493.3 6,064.3 Unrealized holding gains/(losses) on available-for-sale securities (7.0) (9.5) 3.5 Long-term invest 267.7 542.3 Other operating expenses 539.3 500.3 499.2 Tax (expense)/benefit 1.9 2.9 (1.3) Equity and cost investments 334.7 481.6 Depreciation and amortization expenses 1,247.0 1,011. 980.8 Unrealized gains/(losses) on cash flow hedging instruments 24.4 53.2 (109.6) Property, plant and equipment, net 5,929. 4,919.5 General and administrative expenses 1,759.0 1,450.7 ,408.9 Tax (expense)/benefit (6.5) (12.6) 27.5 Deferred income taxes, net 134.7 795.4 Restructuring and impairments 224.4 153.5 Unrealized gains/(losses) on net investment hedging instruments 20.1 Other long-term assets 412.2 362.8 Total operating expenses 21,137.4 18,643.5 17,462.2 Tax (expense)/benefit (2.2) (7.4) Other intangible assets 1,042.2 441.4 Income from equity investees 101.2 391.4 18.2 Translation adjustment and other (220.0) (38.3) 85.5 Goodwill 3,541.6 1,539.2 Tax (expense)/benefit 3.4 190 TOTAL ASSETS 24,156.4 4,365.6 Operating income 3,883.3 1,134.7 ,171.9 (2.4) LIABILITIES AND EQUITY Gain resulting from acquisition of joint venture 1,376.4 Reclassification adjustment for net (gains)/losses realized in net Current liabilities: Net gain resulting from divestiture of certain operations 499.2 93.5 5.4 earnings for available-for-sale securities, hedging instruments, and translation adjustment 24.7 (67.2) 78.2 Accounts payable 1,179.3 $ 782.5 Interest income and other, net 191.4 181.8 102.6 Tax expense/(benefit) (1.2 14.0 11.8 Accrued liabilities 2,298.4 1,934.5 Interest expense (170.3) (92.5) (81.3) Other comprehensive income/(loss) (174.7 (47.2 91.0 Insurance reserves 213.7 215.2 Earnings before income taxes 5,780.0 4,317.5 4,198.6 Comprehensive income including noncontrolling interests 4,343.3 2,837.7 2,909.9 Stored value card liability and current portion of deferred revenue 1,642. ,288.5 Income tax expense 1,262.0 1,432.6 1,379.7 Comprehensive income/(loss) attributable to noncontrolling interests (0.3) 0.2 1.2 Current portion of long-term debt 349.9 Net earnings including noncontrolling interests 4,518.0 2,884.9 2,818.9 Comprehensive income attributable to Starbucks 4,343.6 $ 2,837.5 $ 2,908.7 Total current liabilities 5,684.2 1,220.7 Net earnings/(loss) attributable to noncontrolling interests (0.3) 0.2 1.2 Long-term debt 9,090.2 3,932.6 Net earnings attributable to Starbucks 4,518.3 2,884.7 2,817.7 Deferred revenue 6,775.7 Earnings per share - b 3.27 1.99 1.91 See Notes to Consolidated Financial Statements. Other long-term liabilities 1,430.5 750.9 8,908.6 Earnings per share - diluted 3.24 $ Total liabilities 2,980.6 1.97 $ 1.90 Shareholders' equity: Weighted average shares outstanding: Common stock ($0.001 par value) - authorized, 2,400.0 shares; issued and Basic 1.382.7 1,449.5 1,471.6 outstanding, 1,309.1 and 1,431.6 shares, respectively 1.3 1.4 Diluted 1,394.6 1,461.5 1,486.7 Additional paid-in capital 41.1 41.1 Retained earnings 1,457.4 5,563.2 Accumulated other comprehensive loss (330.3) (155.6) See Notes to Consolidated Financial Statements. Total shareholders' equity 1,169.5 5,450.1 Noncontrolling interests 6.3 6.9 Total equity 1,175. 5,457.0 TOTAL LIABILITIES AND EQUITY 24,156.4 $ 14,365.6 See Notes to Consolidated Financial Statements.STARBUCKS CORPORATION CONSOLIDATED BALANCE SHEETS (in millions, except per share data) Sep 30 2018 Oct 1, 2017 ASSETS Current assets: Cash and cash equivalents 8,756.3 $ 2,462.3 Short-term investments 181.5 228.6 Accounts receivable, net 693.1 870.4 Inventories 1,400.5 1,364.0 Prepaid expenses and other current assets 1,462.8 358.1 Total current assets 12,494.2 5,283.4 Long-term investments 267.7 542.3 Equity and cost investments 334.7 481.6 Property, plant and equipment, net 5,929.1 4,919.5 Deferred income taxes, net 134.7 795.4 Other long-term assets 412.2 362.8 Other intangible assets 1,042.2 441.4 Goodwill 3,541.6 1,539.2 TOTAL ASSETS 24,156.4 $ 14,365.6 LIABILITIES AND EQUITY Current liabilities: Accounts payable S 1,179.3 $ 782.5 Accrued liabilities 2,298.4 1,934.5 Insurance reserves 213.7 215.2 Stored value card liability and current portion of deferred revenue 1,642.9 1,288.5 Current portion of long-term debt 349.9 Total current liabilities 5,684.2 4,220.7 Long-term debt 9,090.2 3,932.6 Deferred revenue 6,775.7 4.4 Other long-term liabilities 1,430.5 750.9 Total liabilities 22,980.6 8,908.6 Shareholders' equity: Common stock ($0.001 par value) - authorized, 2,400.0 shares; issued and outstanding, 1,309.1 and 1,431.6 shares, respectively 1.3 1.4 Additional paid-in capital 41.1 41.1 Retained carnings 1,457.4 5,563.2 Accumulated other comprehensive loss (330.3) (155.6) Total shareholders' equity 1,169.5 5,450.1 Noncontrolling interests 6.3 6.9 Total equity 1,175.8 5,457.0 TOTAL LIABILITIES AND EQUITY $ 24,156.4 14,365.6