Starbucks Annual Report 2020

1 Starbucks Annual Report 2020 Form 10-K (NASDAQ:SBUX)Published: November 12th, 2020 PDF generated by UNITED STATES SECURITIES AND EXCHANGE COMMISSIONW ashington, DC 20549 Form 10-K Annual Report PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended September 27, 2020or TRANSITION Report PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to .Commission File Number: 0-20322 Starbucks Corporation(Exact Name of Registrant as Specified in its Charter)Washington91-1325671(State of Incorporation)(IRS Employer ID)2401 Utah Avenue South, Seattle, Washington 98134(206) 447-1575(Address of principal executive office, zip code, telephone number)Securities Registered Pursuant to Section 12(b) of the Act:Title of Each ClassTrading SymbolName of Each Exchange on Which RegisteredCommon Stock, $ par value per shareSBUXN asdaq Global Select MarketSecurities Registered Pursuant to Section 12(g) of the Act.

2 NoneIndicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes x No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No xIndicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filingrequirements for the past 90 days.

3 Yes x No Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 ofRegulation S-T ( of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit suchfiles). Yes x No Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or anemerging growth company. See the definitions of large accelerated filer, accelerated filer, smaller reporting company and emerging growthcompany in Rule 12b-2 of the Exchange accelerated filerxAccelerated filer Non-accelerated filer Smaller reporting company Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any newor revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

4 Indicate by check mark whether the registrant has filed a Report on and attestation to its management's assessment of the effectiveness of its internalcontrol over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 7262(b)) by the registered public accounting firm thatprepared or issued its audit Report . xIndicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes No xThe aggregate market value of the voting stock held by non-affiliates of the registrant as of the last business day of the registrant s most recentlycompleted second fiscal quarter, based upon the closing sale price of the registrant s common stock on March 29, 2020 as reported on the NASDAQG lobal Select Market was $ billion.

5 As of November 6, 2020, there were 1, million shares of the registrant s Common Stock INCORPORATED BY REFERENCEP ortions of the definitive Proxy Statement for the registrant s Annual Meeting of Shareholders to be held on March 17, 2021 have been incorporated byreference into Part III of this Annual Report on Form CORPORATIONForm 10-KFor the Fiscal Year Ended September 27, 2020 TABLE OF CONTENTSPART IItem 1 Business2 Item 1 ARisk Factors9 Item 1 BUnresolved Staff Comments19 Item 2 Properties19 Item 3 Legal Proceedings19 Item 4 Mine Safety Disclosures19 PART IIItem 5 Market for the Registrant s Common Equity.

6 Related Shareholder Matters and Issuer Purchases of Equity Securities20 Item 6 Selected Financial Data22 Item 7 Management s Discussion and Analysis of Financial Condition and Results of Operations25 Item 7 AQuantitative and Qualitative Disclosures About Market Risk46 Item 8 Financial Statements and Supplementary Data47 Index for Notes to Consolidated Financial Statements52 Report of Independent Registered Public Accounting Firm89 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure91 Item 9 AControls and Procedures91 Item 9 BOther Information93 PART IIIItem 10 Directors, Executive Officers and Corporate Governance94 Item 11 Executive Compensation94 Item 12 Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters94 Item 13 Certain Relationships, Related Transactions and Director Independence94 Item 14 Principal Accounting Fees and Services94 PART IVItem 15 Exhibits.

7 Financial Statement Schedules95 SIGNATURES104 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTSThis Annual Report on Form 10-K includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as believes, expects, anticipates, estimates, intends, plans, seeks or words of similar meaning, or future or conditional verbs, such as will, should, could, may, aims, intends, or projects.

8 A forward-looking statement is neither a prediction nor a guarantee of future events orcircumstances, and those future events or circumstances may not occur. You should not place undue reliance on forward-looking statements, whichspeak only as of the date of this Annual Report on Form 10-K. These forward-looking statements are all based on currently available operating, financialand competitive information and are subject to various risks and uncertainties. Our actual future results and trends may differ materially depending on avariety of factors, including, but not limited to, the risks and uncertainties discussed under Risk Factors and Management s Discussion and Analysis ofFinancial Condition and Results of Operations.

9 Given these risks and uncertainties, you should not rely on forward-looking statements as a prediction ofactual results. Any or all of the forward-looking statements contained in this Annual Report on Form 10-K and any other public statement made by us,including by our management, may turn out to be incorrect. We are including this cautionary note to make applicable and take advantage of the safeharbor provisions of the Private Securities Litigation Reform Act of 1995 for forward-looking statements. We expressly disclaim any obligation to updateor revise any forward-looking statements, whether as a result of new information, future events or IItem 1.

10 BusinessGeneralStarbucks is the premier roaster, marketer and retailer of specialty coffee in the world, operating in 83 markets. Formed in 1985, Starbucks Corporation scommon stock trades on the NASDAQ Global Select Market ( NASDAQ ) under the symbol SBUX. We purchase and roast high-quality coffees that wesell, along with handcrafted coffee, tea and other beverages and a variety of high-quality food items through company-operated stores. We also sell avariety of coffee and tea products and license our trademarks through other channels such as licensed stores, as well as grocery and foodservice throughour Global Coffee Alliance with Nestl S.