STARBUCKS CORP
For the period ended Dec 31, 2023. Filed Jan 30, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 31, 2023 · Filed Jan 30, 2024
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Fair Value Measurements
Note 3: Fair Value Measurements
Assets and liabilities measured at fair value on a recurring basis (in millions):
| Fair Value Measurements at Reporting Date Using | ||||
|---|---|---|---|---|
| Balance at December 31, 2023 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs(Level 2) | Significant Unobservable Inputs(Level 3) | |
| Assets: | ||||
| Cash and cash equivalents | $3,000.4 | $3,000.4 | $— | $— |
| Short-term investments: | ||||
| Available-for-sale debt securities | ||||
| Corporate debt securities | 65.1 | — | 65.1 | — |
| U.S. government treasury securities | 10.4 | 10.4 | — | — |
| Foreign government obligations | 4.0 | — | 4.0 | — |
| Mortgage and other asset-backed securities | 0.3 | — | 0.3 | — |
| Total available-for-sale debt securities | 79.8 | 10.4 | 69.4 | — |
| Structured deposits | 225.5 | — | 225.5 | — |
| Marketable equity securities | 77.7 | 77.7 | — | — |
| Total short-term investments | 383.0 | 88.1 | 294.9 | — |
| Prepaid expenses and other current assets: | ||||
| Derivative assets | 37.2 | — | 37.2 | — |
| Long-term investments: | ||||
| Available-for-sale debt securities | ||||
| Corporate debt securities | 89.2 | — | 78.9 | 10.3 |
| Mortgage and other asset-backed securities | 50.0 | — | 50.0 | — |
| State and local government obligations | 1.4 | — | 1.4 | — |
| U.S. government treasury securities | 99.2 | 99.2 | — | — |
| Total long-term investments | 239.8 | 99.2 | 130.3 | 10.3 |
| Other long-term assets: | ||||
| Derivative assets | 119.2 | — | 119.2 | — |
| Structured deposits | 0.1 | — | 0.1 | — |
| Total assets | $3,779.7 | $3,187.7 | $581.7 | $10.3 |
| Liabilities: | ||||
| Accrued liabilities: | ||||
| Derivative liabilities | $10.5 | $— | $10.5 | $— |
| Other long-term liabilities: | ||||
| Derivative liabilities | 38.4 | — | 38.4 | — |
| Total liabilities | $48.9 | $— | $48.9 | $— |
| Fair Value Measurements at Reporting Date Using | ||||
|---|---|---|---|---|
| Balance at October 1, 2023 | Quoted Prices in Active Markets for Identical Assets(Level 1) | Significant Other Observable Inputs(Level 2) | SignificantUnobservable Inputs(Level 3) | |
| Assets: | ||||
| Cash and cash equivalents | $3,551.5 | $3,551.5 | $— | $— |
| Short-term investments: | ||||
| Available-for-sale debt securities | ||||
| Corporate debt securities | 64.0 | — | 64.0 | — |
| U.S. government treasury securities | 2.8 | 2.8 | — | — |
| Foreign government obligations | 3.9 | — | 3.9 | — |
| Total available-for-sale debt securities | 70.7 | 2.8 | 67.9 | — |
| Structured deposits | 261.2 | — | 261.2 | — |
| Marketable equity securities | 69.6 | 69.6 | — | — |
| Total short-term investments | 401.5 | 72.4 | 329.1 | — |
| Prepaid expenses and other current assets: | ||||
| Derivative assets | 41.0 | — | 41.0 | — |
| Long-term investments: | ||||
| Available-for-sale debt securities | ||||
| Corporate debt securities | 91.1 | — | 91.1 | — |
| Mortgage and other asset-backed securities | 50.2 | — | 50.2 | — |
| State and local government obligations | 1.3 | — | 1.3 | — |
| U.S. government treasury securities | 104.7 | 104.7 | — | — |
| Total long-term investments | 247.3 | 104.7 | 142.6 | — |
| Other long-term assets: | ||||
| Derivative assets | 153.0 | — | 153.0 | — |
| Total assets | $4,394.3 | $3,728.6 | $665.7 | $— |
| Liabilities: | ||||
| Accrued liabilities: | ||||
| Derivative liabilities | $3.6 | $— | $3.6 | $— |
| Other long-term liabilities: | ||||
| Derivative liabilities | 43.2 | — | 43.2 | — |
| Total liabilities | $46.8 | $— | $46.8 | $— |
There were no material transfers between levels, and there was no significant activity within Level 3 instruments during the periods presented. The fair values of any financial instruments presented above exclude the impact of netting assets and liabilities when a legally enforceable master netting agreement exists.
Gross unrealized holding gains and losses on available-for-sale debt securities, structured deposits, and marketable equity securities were not material as of December 31, 2023 and October 1, 2023.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Assets and liabilities recognized or disclosed at fair value on the consolidated financial statements on a nonrecurring basis include items such as property, plant and equipment, ROU assets, goodwill and other intangible assets, equity and other investments, and other assets. These assets are measured at fair value if determined to be impaired.
The estimated fair value of our long-term debt based on the quoted market price (Level 2) is included at Note 7, Debt. There were no material fair value adjustments during the quarter ended December 31, 2023 and January 1, 2023.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.