STARBUCKS CORP
For the period ended Dec 31, 2023. Filed Jan 30, 2024.
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Dec 31, 2023 · Filed Jan 30, 2024
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Deferred Revenue
Note 9: Deferred Revenue
Our deferred revenue primarily consists of the prepaid royalty from Nestlé, for which we have continuing performance obligations to support the Global Coffee Alliance, our unredeemed stored value card liability and unredeemed loyalty points (“Stars”) associated with our loyalty program.
As of December 31, 2023 and October 1, 2023, the current and long-term deferred revenue related to the Nestlé up-front payment was $177.0 million and $6.0 billion, respectively. During each of the quarters ended December 31, 2023 and January 1, 2023, we recognized $44.1 million of prepaid royalty revenue related to Nestlé.
Changes in our deferred revenue balance related to our stored value cards and loyalty program (in millions):
| Quarter Ended December 31, 2023 | Total |
|---|---|
| Stored value cards and loyalty program at October 1, 2023 | $1,567.5 |
| Revenue deferred - card activations, card reloads and Stars earned | 4,687.2 |
| Revenue recognized - card and Stars redemptions and breakage | (4,098.4) |
| Other(1) | 13.4 |
| Stored value cards and loyalty program at December 31, 2023(2) | $2,169.7 |
| Quarter Ended January 1, 2023 | Total |
| Stored value cards and loyalty program at October 2, 2022 | $1,503.0 |
| Revenue deferred - card activations, card reloads and Stars earned | 4,223.4 |
| Revenue recognized - card and Stars redemptions and breakage | (3,714.1) |
| Other(1) | 13.3 |
| Stored value cards and loyalty program at January 1, 2023(2) | $2,025.6 |
(1)“Other” primarily consists of changes in the stored value cards and loyalty program balances resulting from foreign currency translation.
(2)As of December 31, 2023 and January 1, 2023, approximately $2.0 billion and $1.9 billion, respectively, of these amounts were current.
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