XML 33 R14.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Equity and Cost Investments | 12 Months Ended
--- | ---
Oct. 02, 2016
Equity Method Investments and Joint Ventures [Abstract] |
Equity and Cost Investments | Equity and Cost Investments (in millions)
| Oct 2, 2016 |  | Sep 27, 2015
Equity method investments | $ | 305.7 |  |  | $ | 306.4 |
Cost method investments | 48.8 |  |  | 45.6 |
Total | $ | 354.5 |  |  | $ | 352.0 |
Equity Method Investments As of October 2, 2016, we had a 50% ownership interest in each of the following international equity method investees: President Starbucks Coffee (Shanghai); Starbucks Coffee Korea Co., Ltd.; President Starbucks Coffee Corporation (Taiwan) Company Limited; and Tata Starbucks Limited (India). These international entities operate licensed Starbucks® retail stores. We also license the rights to produce and distribute Starbucks-branded products to our 50% owned joint venture, The North American Coffee Partnership with the Pepsi-Cola Company, which develops and distributes bottled Starbucks® beverages, including Frappuccino® coffee drinks, Starbucks Doubleshot® espresso drinks, Starbucks Refreshers® beverages, and Starbucks® Iced Espresso Classics. In the first quarter of fiscal 2016, we sold our 49% ownership interest in our Spanish joint venture, Starbucks Coffee España, S.L. ("Starbucks Spain"), to our joint venture partner, Sigla S.A. (Grupo Vips), for a total purchase price of $30.2 million. This transaction resulted in an insignificant pre-tax gain, which was included in interest income and other, net on our consolidated statements of earnings. In the fourth quarter of fiscal 2014, we sold our 50% equity method ownership interest in our Malaysian joint venture, Berjaya Starbucks Coffee Company Sdn. Bhd., to our joint venture partner, Berjaya Food Berhad, for a total purchase price of $88.0 million. This transaction resulted in a pre-tax gain of $67.8 million, which was included in interest income and other, net on our consolidated statements of earnings. Our share of income and losses from our equity method investments is included in income from equity investees on our consolidated statements of earnings. Also included in this line item is our proportionate share of gross profit resulting from coffee and other product sales to, and royalty and license fee revenues generated from, equity investees. Revenues generated from these related parties were $164.2 million, $153.4 million, and $219.2 million in fiscal years 2016, 2015 and 2014, respectively. Related costs of sales were $97.5 million, $94.5 million, and $121.2 million in fiscal years 2016, 2015 and 2014, respectively. As of October 2, 2016 and September 27, 2015, there were $55.7 million and $36.7 million of accounts receivable from equity investees, respectively, on our consolidated balance sheets, primarily related to product sales and royalty revenues. Cost Method Investments As of October 2, 2016, we had $23 million invested in equity interests of entities that develop and operate Starbucks® licensed stores in several global markets. We have the ability to acquire additional interests in some of these cost method investees at certain intervals. Depending on our total percentage ownership interest and our ability to exercise significant influence over financial and operating policies, additional investments may require application of the equity method of accounting.

X
- Definition The entire disclosure for cost method and equity method investments included basis, impairment losses, recognized or unrecognized gains (losses). + References No definition available. + Details
Name: | us-gaap_CostAndEquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_EquityMethodInvestmentsAndJointVenturesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration