Problem

Analyzing Starbuckss Intangibles Disclosures

Obtain Starbuckss 2017 annual report either using the Investor Relations portion of its web-site (do a web search for Starbucks investor relations) or go to http://www.sec.gov and click Search for company filings under Filings and Forms (EDGAR).

Required:

1. What was the total amount of intangible assets that Starbucks reported at the end of its 2017 fiscal year, and what was the amount of each component?

2. Do you think that Starbucks has additional intangible assets that are not recorded on the balance sheet? Why? How would this issue affect your understanding of the companys financial performance?

3. What is the average remaining useful life of the intangible assets with a finite life?

4. Why does Starbucks amortize some of its intangible assets but not others? How much amortization expense does Starbucks expect to recognize over the next 5 years?