STARBUCKS CORP
For the period ended Sep 29, 2024. Filed Nov 20, 2024.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2024 · Filed Nov 20, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Fair Value Measurements
Note 4: 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 September 29, 2024 | Quoted Pricesin ActiveMarkets for Identical Assets(Level 1) | Significant Other Observable Inputs(Level 2) | SignificantUnobservable Inputs(Level 3) | |
| Assets: | ||||
| Cash and cash equivalents | $3,286.2 | $3,286.2 | $— | $— |
| Short-term investments: | ||||
| Available-for-sale debt securities: | ||||
| Corporate debt securities | 51.8 | — | 51.8 | — |
| Foreign corporate bonds | 0.2 | — | 0.2 | — |
| Mortgage and other asset-backed securities | 0.4 | — | 0.4 | — |
| State and local government obligations | 1.4 | — | 1.4 | — |
| U.S. government treasury securities | 36.9 | 36.9 | — | — |
| Total available-for-sale debt securities | 90.7 | 36.9 | 53.8 | — |
| Structured deposits | 84.1 | — | 84.1 | — |
| Marketable equity securities | 82.2 | 82.2 | — | — |
| Total short-term investments | 257.0 | 119.1 | 137.9 | — |
| Prepaid expenses and other current assets: | ||||
| Derivative assets | 8.7 | — | 8.7 | — |
| Long-term investments: | ||||
| Available-for-sale debt securities: | ||||
| Corporate debt securities | 112.8 | — | 101.8 | 11.0 |
| Mortgage and other asset-backed securities | 64.4 | — | 64.4 | — |
| State and local government obligations | 3.7 | — | 3.7 | — |
| U.S. government treasury securities | 94.9 | 94.9 | — | — |
| Total Available-for-sale debt securities | 275.8 | 94.9 | 169.9 | 11.0 |
| Structured Deposit | 0.2 | — | 0.2 | — |
| Total long-term investments | 276.0 | 94.9 | 170.1 | 11.0 |
| Other long-term assets: | ||||
| Derivative assets | 179.1 | — | 179.1 | — |
| Total assets | $4,007.0 | $3,500.2 | $495.8 | $11.0 |
| Liabilities: | ||||
| Accrued liabilities: | ||||
| Derivative liabilities | $29.2 | $— | $29.2 | $— |
| Other long-term liabilities: | ||||
| Derivative liabilities | 56.7 | — | 56.7 | — |
| Total liabilities | $85.9 | $— | $85.9 | $— |
| Fair Value Measurements at Reporting Date Using | ||||
|---|---|---|---|---|
| Balance at October 1, 2023 | Quoted Pricesin ActiveMarkets 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 | — |
| Foreign government obligations | 3.9 | — | 3.9 | — |
| U.S. government treasury securities | 2.8 | 2.8 | — | — |
| 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.
Available-for-sale Debt Securities
Long-term investments generally mature within 5 years. Proceeds from sales of securities were $1.3 million, $2.5 million, and $72.6 million for fiscal 2024, 2023, and 2022, respectively. Realized gains and losses were not material for fiscal 2024, 2023, and 2022. Gross unrealized holding gains and losses were not materialas of September 29, 2024, and October 1, 2023.
Marketable Equity Securities
Marketable equity securities include equity mutual funds and exchange-traded funds. Our marketable equity securities portfolio approximates a portion of our liability under our MDCP, a defined contribution plan. Our MDCP liability was $112.3 million and $90.4 million as of September 29, 2024, and October 1, 2023, respectively. The changes in net unrealized holding gains and losses in the marketable equity securities portfolio included in earnings for fiscal 2024, 2023, and 2022 were not material. Gross unrealized holding gains and losses on marketable equity securities were not material as of September 29, 2024, and October 1, 2023.
Derivative Assets and Liabilities
Derivative assets and liabilities are described further in Note 3, Derivative Financial Instruments.
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. Impairment of property, plant and equipment and ROU assets is included in Note 1, Summary of Significant Accounting Policies and Estimates.
We recognized impairments during fiscal years ended September 29, 2024, October 1, 2023, and October 2, 2022. See Note 1, Summary of Significant Accounting Policies and Estimates for additional discussion of these impairments.
Fair Value of Other Financial Instruments
The estimated fair value of our long-term debt based on the quoted market price (Level 2) is included at Note 9, Debt.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.