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Debt | 12 Months Ended
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Oct. 02, 2016
Debt Disclosure [Abstract] |
Debt | Debt Revolving Credit Facility and Commercial Paper Program In the first quarter of fiscal 2016, we replaced our 2013 credit facility with our new $1.5 billion unsecured, revolving 2016 credit facility (the "credit facility") with various banks, of which $150 million may be used for issuances of letters of credit. The credit facility is available for working capital, capital expenditures and other corporate purposes, including acquisitions and share repurchases, and is currently set to mature on November 6, 2020. 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 agreement. The current applicable margin is 0.565% for Eurocurrency Rate Loans and 0.00% (nil) 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 October 2, 2016, we were in compliance with all applicable covenants. No amounts were outstanding under our credit facility as of October 2, 2016. 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. 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 October 2, 2016, availability under our commercial paper program was approximately $1 billion (which represents the full committed credit facility amount, as no amounts were outstanding under our commercial paper program). Long-term Debt In May 2016, we issued long-term debt in an underwritten registered public offering, which consisted of $500 million of 10-year 2.450% Senior Notes (the "2026 notes") due June 2026. Interest on the 2026 notes is payable semi-annually on June 15 and December 15 of each year, commencing on December 15, 2016. In February 2016, we issued long-term debt in an underwritten registered public offering, which consisted of $500 million of 5-year 2.100% Senior Notes (the "2021 notes") due February 2021. In May 2016, we reopened this offering with the same terms and issued an additional $250 million of Senior Notes (collectively, the "2021 notes") for an aggregate amount outstanding of $750 million. Interest on the 2021 notes is payable semi-annually on February 4 and August 4 of each year, commencing on August 4, 2016. 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 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. Components of long-term debt including the associated interest rates and related fair values by calendar maturity (in millions, except interest rates):
| Oct 2, 2016 |  | Sep 27, 2015 |  | 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 | %
2018 notes | 350.0 |  | 357 |  |  | 350.0 |  | 354 |  |  | 2.000 | % | 2.012 | %
2021 notes | 500.0 |  | 511 |  |  | — |  | — |  |  | 2.100 | % | 2.293 | %
2021 notes | 250.0 |  | 255 |  |  | — |  | — |  |  | 2.100 | % | 1.600 | %
2022 notes | 500.0 |  | 526 |  |  | 500.0 |  | 503 |  |  | 2.700 | % | 2.819 | %
2023 notes | 750.0 |  | 839 |  |  | 750.0 |  | 790 |  |  | 3.850 | % | 2.860 | %
2026 notes | 500.0 |  | 509 |  |  | — |  | — |  |  | 2.450 | % | 2.511 | %
2045 notes | 350.0 |  | 417 |  |  | 350.0 |  | 355 |  |  | 4.300 | % | 4.348 | %
Total | 3,600.0 |  | 3,814 |  |  | 2,350.0 |  | 2,402 |  |  |  |
Aggregate unamortized premium/(discount) | 2.2 |  |  |  | (2.5 | ) |  |  |  |
Total | $ | 3,602.2 |  |  |  | $ | 2,347.5 |  |  |  |  |
(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 October 2, 2016, we were in compliance with each of these covenants. The following table summarizes our long-term debt maturities as of October 2, 2016 by fiscal year (in millions):
Fiscal Year | Total
2017 | $ | 400.0 |
2018 | — |
2019 | 350.0 |
2020 | — |
2021 | 750.0 |
Thereafter | 2,100.0 |
Total | $ | 3,600.0 |
Interest Expense Interest expense, net of interest capitalized, was $81.3 million, $70.5 million, and $64.1 million in fiscal 2016, 2015 and 2014, respectively. In fiscal 2016, 2015 and 2014, $0.9 million, $3.6 million, and $6.2 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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