STARBUCKS CORP
For the period ended Mar 31, 2024. Filed Apr 30, 2024.
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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.
Mar 31, 2024 · Filed Apr 30, 2024
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Deferred Revenue
Note 10: 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 March 31, 2024, the current and long-term deferred revenue related to the Nestlé up-front payment was $177.0 million and $5.9 billion, respectively. As of 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 March 31, 2024 and April 2, 2023, we recognized $44.1 million of prepaid royalty revenue related to Nestlé. During each of the two quarters ended March 31, 2024 and April 2, 2023, we recognized $88.2 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 March 31, 2024 | Total |
|---|---|
| Stored value cards and loyalty program at December 31, 2023 | $2,169.7 |
| Revenue deferred - card activations, card reloads and Stars earned | 3,456.5 |
| Revenue recognized - card and Stars redemptions and breakage | (3,792.4) |
| Other(1) | (14.9) |
| Stored value cards and loyalty program at March 31, 2024(2) | $1,818.9 |
| Quarter Ended April 2, 2023 | Total |
| Stored value cards and loyalty program at January 1, 2023 | $2,025.6 |
| Revenue deferred - card activations, card reloads and Stars earned | 3,416.0 |
| Revenue recognized - card and Stars redemptions and breakage | (3,778.4) |
| Other(1) | 1.3 |
| Stored value cards and loyalty program at April 2, 2023(2) | $1,664.5 |
| Two Quarters Ended March 31, 2024 | Total |
| Stored value cards and loyalty program at October 1, 2023 | $1,567.5 |
| Revenue deferred - card activations, card reloads and Stars earned | 8,143.7 |
| Revenue recognized - card and Stars redemptions and breakage | (7,890.8) |
| Other(1) | (1.5) |
| Stored value cards and loyalty program at March 31, 2024(2) | $1,818.9 |
| Two Quarters Ended April 2, 2023 | Total |
| Stored value cards and loyalty program at October 2, 2022 | $1,503.0 |
| Revenue deferred - card activations, card reloads and Stars earned | 7,639.4 |
| Revenue recognized - card and Stars redemptions and breakage | (7,492.5) |
| Other(1) | 14.6 |
| Stored value cards and loyalty program at April 2, 2023(2) | $1,664.5 |
(1)“Other” primarily consists of changes in the stored value cards and loyalty program balances resulting from foreign currency translation.
(2)As of March 31, 2024 and April 2, 2023, approximately $1.7 billion and $1.6 billion, respectively, of these amounts were current.
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