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Debt | 12 Months Ended
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Sep. 27, 2015
Debt Disclosure [Abstract] |
Debt | Debt Revolving Credit Facility and Commercial Paper Program Our $750 million unsecured, revolving credit facility with various banks, of which $150 million may be used for issuances of letters of credit, is available for working capital, capital expenditures and other corporate purposes, including acquisitions and share repurchases. During the second quarter of fiscal 2015, we extended the duration of our credit facility, which is now set to mature on January 21, 2020, and amended certain facility fees and borrowing rates. Starbucks has the option, subject to negotiation and agreement with the related banks, to increase the maximum commitment amount by an additional $750 million. Borrowings under the 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 credit facility), 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 credit facility. The current applicable margin is 0.565% for Eurocurrency Rate Loans and 0.00% for Base Rate Loans. The 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 September 27, 2015, we were in compliance with all applicable covenants. No amounts were outstanding under our credit facility as of September 27, 2015. Under our commercial paper program, we may issue unsecured commercial paper notes up to a maximum aggregate amount outstanding at any time of $1 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 credit facility discussed above. As of September 27, 2015, availability under our commercial paper program was approximately $750 million (which represents the full committed credit facility amount, as the amount of outstanding letters of credit was not material as of September 27, 2015). The proceeds from borrowings under our commercial paper program may be used for working capital needs, capital expenditures and other corporate purposes, including share repurchases, business expansion, payment of cash dividends on our common stock or the financing of possible acquisitions. In the fourth quarter of fiscal 2015, we issued and subsequently repaid commercial paper borrowings of $93 million for general corporate purposes. We had no other borrowings under our commercial paper program during fiscal 2015 or fiscal 2014, and there were no amounts outstanding as of September 27, 2015 or September 28, 2014. Long-term Debt In July 2015, we redeemed our $550 million of 6.250% Senior Notes (the "2017 notes") originally scheduled to mature in August 2017. The redemption resulted in a charge of $61.1 million, which is presented separately as loss on extinguishment of debt within other income and expenses on our consolidated statements of earnings. This loss primarily relates to the optional redemption payment as outlined in the 2017 notes indenture, as well as non-cash expenses related to the previously capitalized original issuance costs and accelerated amortization of the unamortized discount. In connection with the redemption, we also reclassified $2.0 million from accumulated other comprehensive income to interest expense on our consolidated statements of earnings related to remaining unrecognized losses from interest rate contracts entered into in conjunction with the 2017 notes and designated as cash flow hedges. In June 2015, we issued additional long-term debt in an underwritten registered public offering, which consisted of $500 million of 7-year 2.700% Senior Notes (the "2022 notes") due June 2022, and $350 million of 30-year 4.300% Senior Notes (the "2045 notes") due June 2045. Interest on the 2022 and 2045 notes is payable semi-annually on June 15 and December 15 of each year, commencing on December 15, 2015. In December 2013, we issued $400 million of 3-year 0.875% Senior Notes (the "2016 notes") due December 2016, and $350 million of 5-year 2.000% Senior Notes (the "2018 notes") due December 2018, in an underwritten registered public offering. Interest on the 2016 and 2018 notes is payable semi-annually on June 5 and December 5 of each year. In September 2013, we issued $750 million of 10-year 3.85% Senior Notes (the "2023 notes") due October 2023, in an underwritten registered public offering. Interest on the 2023 notes is payable semi-annually on April 1 and October 1 of each year. Components of long-term debt including the associated interest rates and related fair values (in millions, except interest rates):
| Sep 27, 2015 |  | Sep 28, 2014 |  | Stated Interest Rate | Effective Interest Rate (1)
Issuance | Face Value | Estimated Fair Value |  | Face Value | Estimated Fair Value |
2016 notes | $ | 400.0 |  | $ | 400 |  |  | $ | 400.0 |  | $ | 400 |  |  | 0.875 | % | 0.941 | %
2017 notes | — |  | — |  |  | 550.0 |  | 625 |  |  | 6.250 | % | — | %
2018 notes | 350.0 |  | 354 |  |  | 350.0 |  | 353 |  |  | 2.000 | % | 2.012 | %
2022 notes | 500.0 |  | 503 |  |  | — |  | — |  |  | 2.700 | % | 2.819 | %
2023 notes | 750.0 |  | 790 |  |  | 750.0 |  | 786 |  |  | 3.850 | % | 2.860 | %
2045 notes | 350.0 |  | 355 |  |  | — |  | — |  |  | 4.300 | % | 4.348 | %
Total | 2,350.0 |  | 2,402 |  |  | 2,050.0 |  | 2,164 |  |  |  |
Aggregate unamortized discount | 2.5 |  |  |  | 1.7 |  |  |  |  |
Total | $ | 2,347.5 |  |  |  | $ | 2,048.3 |  |  |  |  |
(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 the interest rate risk prior to the debt issuance.
The indentures under which the above notes were issued also require us to maintain compliance with certain covenants, including limits on future liens and sale and leaseback transactions on certain material properties. As of September 27, 2015, we were in compliance with each of these covenants. The following table summarizes our long-term debt maturities as of September 27, 2015 (in millions):
Fiscal Year | Total
2016 | $ | — |
2017 | 400.0 |
2018 | — |
2019 | 350.0 |
2020 | — |
Thereafter | 1,600.0 |
Total | $ | 2,350.0 |
Interest Expense Interest expense, net of interest capitalized, was $70.5 million, $64.1 million, and $28.1 million in fiscal 2015, 2014 and 2013, respectively. In fiscal 2015, 2014, and 2013, $3.6 million, $6.2 million, and $10.4 million, respectively, of interest was capitalized for asset construction projects.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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