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iso4217:USD
xbrli:shares
xbrli:shares
iso4217:USD
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left">
</div>
<div align="center" style="font-size: 10pt; margin-top: 0pt"><b>
</b>
<b><i>
</i></b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 1: Summary of Significant Accounting Policies</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>Financial Statement Preparation</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The unaudited condensed consolidated financial statements as of June 28, 2009, and for the 13-week
and 39-week periods ended June 28, 2009 and June 29, 2008, have been prepared by Starbucks
Corporation (“Starbucks” or the “Company”) under the rules and regulations of the Securities and
Exchange Commission (the “SEC”). In the opinion of management, the financial information for the
13-week and 39-week periods ended June 28, 2009 and June 29, 2008 reflects all adjustments and
accruals, which are of a normal recurring nature, necessary for a fair presentation of the
financial position, results of operations and cash flows for the interim periods.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company evaluated subsequent events and transactions for potential recognition or disclosure in
the financial statements through August 4, 2009, the day the financial statements were issued.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The financial information as of September 28, 2008 is derived from the Company’s audited
consolidated financial statements and notes for the fiscal year ended September 28, 2008 (“fiscal
2008”), included in Item 8 in the Fiscal 2008 Annual Report on Form 10-K (the “10-K”). The
information included in this Quarterly Report on Form 10-Q (the “10-Q”) should be read in
conjunction with management’s discussion and analysis and notes to the financial statements in the
10-K.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The results of operations for the 13-week and 39-week periods ended June 28, 2009 are not
necessarily indicative of the results of operations that may be achieved for the entire fiscal year
ending September 27, 2009 (“fiscal 2009”).
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Fair Value of Financial Instruments</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The carrying value of cash and cash equivalents approximates fair value because of the short-term
maturity of those instruments. Details on the fair value of the Company’s trading securities,
available-for-sale securities and derivatives are included in Note 5, Fair Value Measurements. For
equity securities of companies that are privately held, or where an observable quoted market price
does not exist, the Company estimates fair value using a variety of valuation methodologies. Such
methodologies include comparing the security with securities of publicly traded companies in
similar lines of business, applying revenue multiples to estimated future operating results for the
private company and estimating discounted cash flows for that company. Declines in fair value below
the Company’s carrying value deemed to be other than temporary are charged against net earnings.
The fair value of the Company’s debt is estimated based on the quoted market prices for the same or
similar issues or on the current rates offered to the Company for debt of the same remaining
maturities. The carrying value of short-term debt approximates fair value. The estimated fair value
of Starbucks $550 million of 6.25% Senior Notes was approximately $564 million as of June 28, 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Goodwill</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company tests its goodwill for impairment on an annual basis, or more frequently if
circumstances indicate goodwill carrying values exceed reporting unit fair values. Fair value is
estimated by projecting discounted cash flows from the reporting unit in addition to other
quantitative and qualitative analyses. If the carrying amount of goodwill exceeds the estimated
fair value, an impairment charge to current operations is recorded to reduce the carrying value to
the implied estimated fair value.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Starbucks conducted its annual test for its consolidated entities in the fiscal third quarter,
resulting in $7 million of goodwill impairment related to its US operating segment’s Hawaii
reporting unit, which is comprised of retail store operations. The
current and future projected operating results for the Hawaii
operations, which were acquired in fiscal 2006, are lower than
originally anticipated due to the overall economic slowdown and its
impact on the travel industry in particular, resulting in a partial
impairment of the goodwill recorded at acquisition.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Recent Accounting Pronouncements</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In September 2006, the Financial Accounting Standards Board (FASB) issued SFAS No. 157, “Fair Value
Measurements,” which defines fair value, establishes a framework for measuring fair value in
generally accepted accounting principles and expands disclosures about fair value measurements.
Starbucks adopted SFAS 157 for its financial assets and liabilities effective September 29,
2008 (see Note 5 for additional disclosures). As permitted by FSP FAS 157-2, SFAS 157 is effective
for nonfinancial assets and liabilities for Starbucks first fiscal quarter of 2010. The Company
continues to evaluate the potential impact of the adoption of SFAS 157 related to its nonfinancial
assets and liabilities.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In December 2007, the FASB issued SFAS No. 141 (revised 2007), “Business Combinations,” which
replaces SFAS 141. SFAS 141R establishes principles and requirements for how an acquirer recognizes
and measures in its financial statements the identifiable assets acquired, the liabilities assumed,
any resulting goodwill, and any noncontrolling interest in the acquiree. SFAS 141R also provides
for disclosures to enable users of the financial statements to evaluate the nature and financial
effects of the business combination. SFAS 141R will be effective for Starbucks first fiscal quarter
of 2010 and must be applied prospectively to business combinations completed in fiscal 2010 and
beyond.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in Consolidated Financial
Statements — an amendment of Accounting Research Bulletin No. 51,” which establishes accounting
and reporting standards for noncontrolling interests (“minority interests”) in subsidiaries. SFAS
160 clarifies that a noncontrolling interest in a subsidiary should be accounted for as a component
of equity separate from the parent’s equity. SFAS 160 will be effective for Starbucks first fiscal
quarter of 2010 and must be applied prospectively, except for the presentation and disclosure
requirements, which will apply retrospectively. The Company continues to evaluate the
impact that adoption will have on its consolidated financial statements.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In early April 2009, three FASB Staff Positions were issued. FSP FAS 157-4 addresses the
determination of fair values in inactive markets. FSP FAS 115-2 addresses other-than-temporary
impairments for debt securities. FSP FAS 107-1 requires interim disclosures about fair value of
financial instruments. Starbucks adopted the three FSPs in the third quarter of fiscal 2009, with
no significant impact on the Company’s financial statements.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In June 2009, the FASB issued SFAS No. 167, “Amendments to FASB Interpretation No. 46(R).” SFAS
No. 167 requires a qualitative approach to identifying a controlling financial interest in a
variable interest entity (VIE), and requires ongoing assessment of whether an entity is a VIE and
whether an interest in a VIE makes the holder the primary beneficiary of the VIE. The standard will
be effective for Starbucks first fiscal quarter of 2011. The Company is currently evaluating the
impact that adoption may have on its consolidated financial statements.
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 2: Restructuring Charges</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In the third quarter of fiscal 2009, Starbucks continued to execute its restructuring efforts to
position the Company for long-term profitable growth. These efforts are focused on both the global
Company-operated store base and the non-retail support organization. Starbucks actions to
rationalize its store portfolio have included the announcements (in July 2008 and January 2009) of
plans to close a total of approximately 800 Company-operated stores in the US, restructure its
Australia market, and close approximately 100 additional Company-operated stores internationally.
Since those announcements, 676 US stores, 61 stores in Australia and 28 other International stores
have been closed.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>2009 Restructuring Charges</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>US store closures — </i>In the third quarter of fiscal 2009, the Company closed 60 of the
approximately 600 stores announced in July 2008, bringing the total number of US closures under
this restructuring action to 563 stores as of the end of the third quarter. The Company also closed
109 of the approximately 200 stores announced for closure in January 2009, bringing the total number of closures under this restructuring action
to 113 stores as of the end of the third quarter. The Company expects to complete the remaining US
store closures by the end of fiscal 2009, and recognize the associated lease exit costs
concurrently with the actual closures.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>International store closures </i>- During the third quarter of fiscal 2009, the Company closed 25 of
the approximately 100 stores announced for closure in January 2009, bringing the total number of
International closures under this action to 28 stores. The Company
expects to complete the remaining
closures in fiscal 2010, and will recognize the associated lease exit
costs concurrently with the actual closures.
</div>
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</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">Restructuring charges by type and a reconciliation of the associated accrued liability were as
follows (<i>in millions</i>):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Lease Exit</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Employee</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>and Other</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Asset</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Termination</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Related Costs</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Impairments</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Costs</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Total</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total expected costs
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">296.8</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">327.4</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">39.1</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">663.3</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Expenses recognized during the 13 weeks ended June 28, 2009 (1)
</div></td>
<td> </td>
<td> </td>
<td align="right">44.1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">51.6</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Expenses recognized during the 39 weeks ended June 28, 2009 (1)
</div></td>
<td> </td>
<td> </td>
<td align="right">135.1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">125.8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18.3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">279.2</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Costs incurred during the 13 weeks ended June 28, 2009 (1)
</div></td>
<td> </td>
<td> </td>
<td align="right">44.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">51.5</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Costs incurred during the 39 weeks ended June 28, 2009 (1)
</div></td>
<td> </td>
<td> </td>
<td align="right">120.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">125.8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18.3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">264.5</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Costs incurred cumulative to date
</div></td>
<td> </td>
<td> </td>
<td align="right">183.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">327.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">35.8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">546.2</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Accrued liability as of September 28, 2008
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">48.0</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">5.4</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">53.4</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Costs incurred, excluding non-cash charges and credits (2)
</div></td>
<td> </td>
<td> </td>
<td align="right">139.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">157.4</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash payments
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(109.6</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(22.2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(131.8</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Accrued liability as of June 28, 2009
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">77.6</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.4</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">79.0</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Restructuring charges by reportable segment were as follows (<i>in millions</i>):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Unallocated</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>US</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>International</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Corporate (3)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Total</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total expected costs
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">467.8</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">100.8</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">94.7</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">663.3</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Expenses recognized during the 13 weeks ended June 28, 2009 (1)
</div></td>
<td> </td>
<td> </td>
<td align="right">39.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">51.6</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Expenses recognized during the 39 weeks ended June 28, 2009 (1)
</div></td>
<td> </td>
<td> </td>
<td align="right">200.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">21.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">57.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">279.2</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Costs incurred during the 13 weeks ended June 28, 2009 (1)
</div></td>
<td> </td>
<td> </td>
<td align="right">39.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">51.5</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Costs incurred during the 39 weeks ended June 28, 2009 (1)
</div></td>
<td> </td>
<td> </td>
<td align="right">185.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">21.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">57.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">264.5</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Costs incurred cumulative to date
</div></td>
<td> </td>
<td> </td>
<td align="right">411.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">40.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">94.3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">546.2</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(1)</td>
<td> </td>
<td>The difference between expenses recognized and costs incurred within the period is due to a
number of termination agreements that were finalized in one period for store closures to occur
in a subsequent period. Such termination fees are amortized on a straight-line basis from the
date of the termination agreement to the date of closure.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(2)</td>
<td> </td>
<td>Non-cash charges and credits for “Lease Exit and Other Related Costs” primarily represent
deferred rent balances recognized as expense credits at the cease-use date.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(3)</td>
<td> </td>
<td>Includes $0.2 million of employee termination costs for the Global Consumer Products Group
(“CPG”) segment for the 39 week period ended June 28, 2009.</td>
</tr>
</table>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>2008 Restructuring Charges</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company recognized $167.7 million of restructuring charges in the 13 weeks and 39 weeks ended
June 29, 2008, comprised of store asset impairments related to
Starbucks July 2008 announcement that it would
close approximately 600 stores in its US market.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
</div>
</body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<html>
<head></head>
<body>
<!-- Begin Block Tagged Note 3 - us-gaap:InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 3: Investments</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>Available-for-sale securities</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company’s available-for-sale securities as of June 28, 2009 were as follows <i>(in millions)</i>:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Gross</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Gross</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Unrealized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Unrealized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Amortized</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Holding</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Holding</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Fair</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Cost</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Losses</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Gains</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Value</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Short-term investments
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Corporate debt securities
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">5.5</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.1</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">5.6</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Long-term investments
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">State and local government obligations
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">58.4</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(2.5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">55.9</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Corporate debt securities
</div></td>
<td> </td>
<td> </td>
<td align="right">11.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12.2</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total long-term investments
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">69.9</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(2.5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">0.7</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">68.1</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total available-for-sale securities
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">75.4</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(2.5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">0.8</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">73.7</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">For available-for-sale securities, proceeds from sales were $5.0 million for both the 13 weeks and
39 weeks ended June 28, 2009. Additionally, in the third quarter of fiscal 2009, one of the
Company’s auction rate securities (“ARS”) was called at par value of $7.4 million. There were
immaterial amounts of realized gains and realized losses during the
13-week and 39-week periods.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">As of June 28, 2009, the Company’s long-term available-for-sale securities of $68.1 million
included $55.9 million invested in ARS. ARS have long-dated maturities but provide liquidity
through a Dutch auction process that resets the applicable interest rate at pre-determined calendar
intervals. Due to the auction failures that began in mid-February 2008, these securities became
illiquid and were classified as long-term investments. The investment principal associated with the
failed auctions will not be accessible until:
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>successful auctions resume;</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>an active secondary market for these securities develops;</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>the issuers replace these securities with another form of financing; or</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>final payments are made according to the contractual maturities of the debt issues which
range from 21 to 36 years.</td>
</tr>
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company intends to hold the ARS until it can recover the full principal amount and has the
ability to do so based on other sources of liquidity. The Company expects such recoveries to occur
prior to the contractual maturities.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company has $2.5 million of accumulated unrealized losses on ARS, determined to be temporary,
which is included in accumulated other comprehensive income as a reduction in shareholders’ equity.
The Company’s ARS are collateralized by portfolios of student loans, substantially all of which are
guaranteed by the United States Department of Education. As of
June 28, 2009, approximately $41.6
million in ARS was rated triple-A by two or more of the following major rating agencies: Moody’s,
Standard & Poor’s and Fitch Ratings. All of the remaining
securities were rated investment grade.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table presents the length of time available-for-sale securities were in continuous
unrealized loss positions but were not deemed to be other-than-temporarily impaired, as of June 28,
2009 <i>(in millions)</i>:
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b><i>Consecutive Monthly Unrealized Losses</i></b>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Greater Than</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>Less Than</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7"><b>or Equal to</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>12 Months</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>12 months</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Gross</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Gross</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Unrealized</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Unrealized</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Holding</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Fair</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Holding</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Fair</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Losses</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Value</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Losses</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Value</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">State and local government obligations
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(2.5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$</td>
<td align="right">55.9</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">Gross unrealized holding losses on the state and local obligations consist of unrealized losses on
the Company’s eleven ARS. As Starbucks has the ability and intent to hold its available-for-sale
securities until a recovery of fair value, which may be at maturity, the Company does not consider
these securities to be other-than-temporarily impaired. Long-term corporate debt securities
generally mature in less than five years.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">There were
no realized losses recorded for other-than-temporary impairments during the 13-week and
39-week periods ended June 28, 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Trading securities</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Changes in net unrealized holding gains/losses in the trading portfolio included in earnings were a
net gain of $5.4 million for the 13-week period ended June 28, 2009 and a net loss of $10.6 million
for the 39-week period ended June 28, 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Cost Method Investments</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The
Company has equity interests in entities that develop and operate Starbucks licensed retail
stores in several global markets. The value of these investments was $35.2 million as of June 28,
2009. Additionally, Starbucks has investments in privately held equity securities unrelated to
Starbucks licensed retail stores. The value of these investments was $2.5 million as of June 28,
2009. Management compared the estimated fair value of each cost method investment to its related
carrying value as of June 28, 2009, and recognized a loss of $0.3 million on one of the investments
that is unrelated to Starbucks licensed retail stores.
</div>
</div>
</body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<html>
<head></head>
<body>
<!-- Begin Block Tagged Note 4 - us-gaap:DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 4: Derivative Financial Instruments</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company manages its exposure to certain market-based risks through an umbrella risk management
policy. Under this policy, market-based risks are quantified and evaluated for potential mitigation
strategies, such as entering into hedging transactions. Hedging instruments may include derivatives
used to hedge interest rates, commodity prices, and foreign currency denominated revenues,
purchases, assets and liabilities.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company records all derivatives on the consolidated balance sheets at fair value. For a cash
flow hedge, the effective portion of the derivative’s gain or loss is initially reported as a
component of other comprehensive income (“OCI”) and subsequently reclassified into net earnings
when the hedged exposure affects net earnings. For a net investment hedge, the effective portion of
the derivative’s gain or loss is reported as a component of OCI.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">See Note 5 for additional information on the Company’s fair value measurements related to
derivative instruments.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Cash Flow Hedges</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company and certain subsidiaries enter into cash flow derivative instruments to hedge portions
of anticipated revenue streams and inventory purchases in currencies other than the entity’s
functional currency. Outstanding forward contracts, which comprise the majority of the Company’s
derivative instruments, hedge monthly forecasted revenue transactions denominated in Japanese yen
and Canadian dollars, as well as forecasted inventory purchases denominated in US dollars for
foreign operations. From time to time, the Company also uses futures contracts to hedge the
variable price component for a small portion of its price-to-be-fixed green coffee purchase
contracts.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company had net derivative gains of $5.0 million, net of taxes, in accumulated OCI as of June
28, 2009, related to cash flow hedges. Of this amount, $0.6 million of net derivative gains
pertains to hedging instruments that will be dedesignated within 12 months and will also continue
to experience fair value changes before affecting earnings. No cash flow hedges were discontinued
during the 13-week and 39-week periods ended June 28, 2009 and June 29, 2008. Outstanding contracts
will expire within 39 months.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Net Investment Hedges</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Net investment derivative instruments are used to hedge the Company’s equity method investment in
Starbucks Coffee Japan, Ltd. (“Starbucks Japan”) as well as the Company’s net investments in its
Canada, UK and China subsidiaries, to minimize foreign currency exposure.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company had net derivative losses of $15.4 million, net of taxes, in accumulated OCI as of June
28, 2009, related to net investment derivative hedges. Outstanding contracts will expire within 20
months.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Other Derivatives</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company enters into certain foreign currency forward contracts that are not designated as
hedging instruments under SFAS 133 to mitigate the translation risk of certain balance sheet items.
These contracts are recorded at fair value, with the changes in fair value recognized in “Interest
income and other, net” on the consolidated statements of earnings. The impact of the fair value
adjustments on earnings is largely offset by the financial impact of translating foreign currency
denominated payables and receivables, which is also recognized in “Interest income and other, net.”
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In the third quarter of fiscal 2009, the Company entered into certain swap and futures contracts that are not designated as hedging
instruments under SFAS 133 to mitigate the price uncertainty of a portion of its future purchases of dairy
products and diesel fuel. These contracts are recorded at fair value, with the changes in fair
value recognized in “Interest income and other, net” on the consolidated statement of earnings.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table presents the fair values of derivative instruments on the consolidated balance
sheet as of June 28, 2009 (<i>in millions</i>):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="25%"> </td>
<td width="2%"> </td>
<td width="12%"> </td>
<td width="1%"> </td>
<td width="12%"> </td>
<td width="2%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="2%"> </td>
<td width="12%"> </td>
<td width="1%"> </td>
<td width="12%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Assets</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Liabilities</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Contract Type</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Balance Sheet location</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Balance Sheet location</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td colspan="8" align="left"><b><i>Derivatives designated as hedging instruments under SFAS 133:</i></b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash Flow Hedges:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:30px; text-indent:-15px">Foreign Exchange
</div></td>
<td> </td>
<td colspan="3" align="left">Prepaid expenses and other current assets</td>
<td> </td>
<td align="left">$</td>
<td align="right">9.2</td>
<td> </td>
<td> </td>
<td colspan="3" align="left">Other accrued expenses</td>
<td> </td>
<td align="left">$</td>
<td align="right">4.5</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td valign="top">
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td valign="top">
<div style="margin-left:30px; text-indent:-15px">Foreign Exchange
</div></td>
<td> </td>
<td colspan="3" align="left">Other assets</td>
<td> </td>
<td> </td>
<td align="right">13.7</td>
<td> </td>
<td> </td>
<td colspan="3" align="left">Other long-term liabilities</td>
<td> </td>
<td> </td>
<td align="right">2.7</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td valign="top">
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:30px; text-indent:-15px">Commodity
</div></td>
<td> </td>
<td colspan="3" align="left">Prepaid expenses and other current assets</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td colspan="3" align="left">Other accrued expenses</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">22.9</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7.2</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px">Net Investment Hedges:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td valign="top">
<div style="margin-left:30px; text-indent:-15px">Foreign Exchange
</div></td>
<td> </td>
<td colspan="3" align="left">Prepaid expenses and other current assets</td>
<td> </td>
<td> </td>
<td align="right">1.2</td>
<td> </td>
<td> </td>
<td colspan="3" align="left">Other accrued expenses</td>
<td> </td>
<td> </td>
<td align="right">3.0</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:30px; text-indent:-15px">Foreign Exchange
</div></td>
<td> </td>
<td colspan="3" align="left">Other assets</td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td colspan="3" align="left">Other long-term liabilities</td>
<td> </td>
<td> </td>
<td align="right">2.5</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.2</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5.5</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td valign="top">
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top" nowrap="nowrap">
<div style="margin-left:30px; text-indent:-15px">Total Derivatives under SFAS 133
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">24.1</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">12.7</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td valign="top">
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td colspan="5" align="left"><b><i>Derivatives not designated as hedging instruments under SFAS 133:</i></b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top">
<div style="margin-left:30px; text-indent:-15px">Foreign Exchange
</div></td>
<td> </td>
<td colspan="3" align="left">Prepaid expenses and other current assets</td>
<td> </td>
<td align="left">$</td>
<td align="right">0.4</td>
<td> </td>
<td> </td>
<td colspan="3" align="left">Other accrued expenses</td>
<td> </td>
<td align="left">$</td>
<td align="right">15.0</td>
<td> </td>
</tr>
<tr valign="bottom">
<td valign="top">
<div style="margin-left:30px; text-indent:-15px">Commodity
</div></td>
<td> </td>
<td colspan="3" align="left">Prepaid expenses and other current assets</td>
<td> </td>
<td> </td>
<td align="right">0.8</td>
<td> </td>
<td> </td>
<td colspan="3" align="left">Other accrued expenses</td>
<td> </td>
<td> </td>
<td align="right">0.4</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td valign="top" nowrap="nowrap">
<div style="margin-left:30px; text-indent:-15px">Total Derivatives not under SFAS 133
</div></td>
<td> </td>
<td> </td>
<td align="right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.2</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15.4</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td valign="top">
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td valign="top">
<div style="margin-left:30px; text-indent:-15px">Total Derivatives
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">25.3</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">28.1</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td valign="top">
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table presents the effect of derivative instruments on the consolidated
statements of earnings for the 13-week and 39-week periods ended June 28, 2009 (<i>in millions</i>):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="34%"> </td>
<td width="2%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="2%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="2%"> </td>
<td width="9%"> </td>
<td width="1%"> </td>
<td width="10%"> </td>
<td width="2%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="2%"> </td>
<td width="4%"> </td>
<td width="1%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Location of Gain/(Loss)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Gain/(Loss) reclassed from</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>reclassified from Accumulated</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>Accumulated OCI to Net</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Gain/(Loss) recognized in OCI</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>OCI into Net Earnings -</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Earnings</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Contract Type</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>13 Weeks</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>39 Weeks</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Effective Portion</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>13 Weeks</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>39 Weeks</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td colspan="8">
<div style="margin-left:15px; text-indent:-15px"><b><i>Derivatives designated
as hedging instruments under SFAS 133:</i></b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Cash Flow Hedges:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign
Exchange(1)
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(13.5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">25.7</td>
<td> </td>
<td> </td>
<td colspan="3" align="left">Total net revenue</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(0.6</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(2.8</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right"></td>
<td nowrap="nowrap"></td>
<td> </td>
<td> </td>
<td align="right"></td>
<td> </td>
<td> </td>
<td colspan="3" align="left">Cost of sales including occupancy costs</td>
<td> </td>
<td> </td>
<td align="right">2.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5.0</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Commodity
</div></td>
<td> </td>
<td> </td>
<td align="right">(3.9</td>
<td>) </td>
<td> </td>
<td> </td>
<td align="right">(1.5</td>
<td>) </td>
<td> </td>
<td colspan="3" align="left">Cost of sales including occupancy costs</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(0.2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(0.3</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Interest rate (2)
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td colspan="3" align="left">Interest expense</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(0.2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(0.5</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(17.4</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">24.2</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.4</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net Investment Hedges:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign Exchange (3)
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(8.2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3.8</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(25.6</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">20.4</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.0</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1.4</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="45%"> </td>
<td width="3%"> </td>
<td width="16%"> </td>
<td width="1%"> </td>
<td width="17%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="3%"> </td>
<td width="2%"> </td>
<td width="1%"> </td>
<td width="2%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left" colspan="3"><b>Location of Gain/(Loss) recognized in</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Gain/(Loss) recognized in Net Earnings</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left" colspan="3" style="border-bottom: 1px solid #000000"><b>Net Earnings</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>13 Weeks</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>39 Weeks</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td colspan="8">
<div style="margin-left:15px; text-indent:-15px"><b><i>Derivatives not designated
as hedging instruments under SFAS 133</i></b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Foreign Exchange
</div></td>
<td> </td>
<td colspan="3" align="left">Interest Income and Other, net</td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(24.7</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="right">$</td>
<td align="right">20.8</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Commodity
</div></td>
<td> </td>
<td colspan="3" align="left">Interest Income and Other, net</td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(0.3</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">(0.3</td>
<td nowrap="nowrap">)</td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(1)</td>
<td> </td>
<td>During both the 13 weeks and 39 weeks ended June 28, 2009, $1.1 million and $1.6 million of
gain, respectively, was recognized in “Interest income and other, net,” related to the
ineffective portion.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(2)</td>
<td> </td>
<td>The Company entered into, dedesignated and settled forward interest rate contracts to hedge
movements in interest rates prior to issuing its $550 million 6.25% Senior Notes in fiscal
2007. The resulting net losses from these contracts will continue to be reclassified to
“Interest expense” on the consolidated statements of earnings over the life of the Senior
Notes due in 2017.</td>
</tr>
<tr style="font-size: 3pt">
<td> </td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(3)</td>
<td> </td>
<td>During the 13 weeks and 39 weeks ended June 28, 2009, $0.4 million and $3.1 million of gain,
respectively, were recognized in “Interest income and other, net,” related to the ineffective
portion.</td>
</tr>
</table>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company had the following outstanding derivative contracts as of June 28, 2009, based on
notional amounts:
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>$695 million in foreign exchange contracts</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>$20 million in dairy contracts</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>$11 million in diesel contracts</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>$0.3 million in green coffee contracts</td>
</tr>
</table>
</div>
</div>
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<head></head>
<body>
<!-- Begin Block Tagged Note 5 - us-gaap:FairValueDisclosuresTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 5: Fair Value Measurements</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company adopted SFAS 157 for its financial assets and liabilities effective September 29, 2008,
and will adopt SFAS 157 for nonfinancial assets and liabilities in the first fiscal quarter of
2010. The two-step adoption is in accordance with FSP FAS 157-2, which allows for the delay of the
effective date of SFAS 157 for nonfinancial assets and liabilities. The Company continues to
evaluate the potential impact of the adoption of SFAS 157 fair value measurements related to its
property, plant and equipment, goodwill and other intangible assets.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">SFAS 157 defines fair value, establishes a framework for measuring fair value in generally accepted
accounting principles and expands disclosures about fair value measurements. SFAS 157 also
establishes a fair value hierarchy that prioritizes the inputs used to measure fair value:
</div>
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or
liabilities traded in active markets.</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>Level 2: Inputs other than quoted prices included within Level 1 that are observable for the
asset or liability, either directly or indirectly.</td>
</tr>
<tr>
<td style="font-size: 6pt"> </td>
</tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td>
<td>Level 3: Inputs that are generally unobservable. These inputs may be used with internally
developed methodologies that result in management’s best estimate of fair value.</td>
</tr>
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div style="margin-top: 6pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table presents the financial assets and liabilities measured at fair value on a
recurring basis as of June 28, 2009 (<i>in millions</i>):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Jun 28,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Level 1</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Level 2</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Level 3</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Assets:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Trading securities
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">39.2</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">39.2</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td>$</td>
<td nowrap="nowrap" align="right">—</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Available-for-sale securities
</div></td>
<td> </td>
<td> </td>
<td align="right">73.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">17.8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">55.9</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivatives
</div></td>
<td> </td>
<td> </td>
<td align="right">25.3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">25.3</td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">138.2</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">39.2</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">43.1</td>
<td> </td>
<td> </td>
<td>$</td>
<td align="right">55.9</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>Liabilities:</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Derivatives
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">28.1</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">28.1</td>
<td> </td>
<td> </td>
<td>$</td>
<td nowrap="nowrap" align="right">—</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Trading securities include mutual funds and exchange-traded-funds, which the Company holds as an
economic hedge against its liability under the Management Deferred Compensation Plan (“MDCP”). For
these securities, the Company uses quoted prices in active markets for identical assets to
determine their fair value, thus they are considered to be Level 1 instruments.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Available-for-sale securities include corporate bonds and auction-rate securities (“ARS”)
collateralized by student loans, substantially all of which are guaranteed by the United States
Department of Education. The Company uses observable direct and indirect inputs for corporate
bonds, which are considered Level 2 instruments. Level 3 instruments are comprised solely of ARS,
all of which are considered to be illiquid due to the auction failures that began in mid-February
2008. The Company values ARS using an internally developed valuation model, whose inputs include
interest rate curves, credit and liquidity spreads, and effective maturity.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Derivative assets and liabilities include foreign currency forward contracts, commodity swaps and
futures contracts. Where applicable, the Company uses quoted prices in an active market for
identical derivative assets and liabilities that are traded in exchanges. These derivative assets
and liabilities are coffee and dairy futures contracts and are included in Level 1. Derivative
assets and liabilities included in Level 2 are over-the-counter currency forward contracts and
commodity swaps whose fair values are estimated using industry-standard valuation models. Such
models project future cash flows and discount the future amounts to a present value using
market-based observable inputs, including interest rate curves and forward and spot prices for
currencies and commodities.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Changes in Level 3 Instruments Measured at Fair Value on a Recurring Basis</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table presents the changes in Level 3 instruments measured on a recurring basis for
the 39 weeks ended June 28, 2009 (<i>in millions</i>):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="88%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>ARS</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Beginning balance, September 28, 2008
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">59.8</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total reduction in unrealized losses included in other comprehensive income
</div></td>
<td> </td>
<td> </td>
<td align="right">3.5</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Purchases, sales, issuances, and settlements
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(7.4</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Transfers in (out) of Level 3
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Ending balance, June 28, 2009
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">55.9</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company measures certain financial assets, including its cost and equity method investments, at
fair value on a nonrecurring basis. These assets are recognized at fair value when they are deemed
to be other-than-temporarily impaired. During the 13 weeks and 39 weeks ended June 28, 2009, the
Company recorded $0.3 million of other-than-temporary impairment for one of its cost method
investments in privately held equity securities that is unrelated to Starbucks licensed retail
stores.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
</div>
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<!-- Begin Block Tagged Note 6 - us-gaap:InventoryDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 6: Inventories</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Inventories consisted of the following (<i>in millions</i>):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Jun 28,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Sep 28,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Jun 29,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Coffee:
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Unroasted
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">451.4</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">377.7</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">374.7</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Roasted
</div></td>
<td> </td>
<td> </td>
<td align="right">56.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">89.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">84.8</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other merchandise held for sale
</div></td>
<td> </td>
<td> </td>
<td align="right">92.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">120.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">103.9</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Packaging and other supplies
</div></td>
<td> </td>
<td> </td>
<td align="right">103.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">104.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">99.3</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">703.6</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">692.8</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">662.7</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">As of June 28, 2009, the Company had committed to purchasing green coffee totaling $205 million
under fixed-price contracts and an estimated $95 million under price-to-be-fixed contracts. The
Company believes, based on relationships established with its suppliers in the past, the risk of
non-delivery on such purchase commitments is remote.
</div>
</div>
</body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<html>
<head></head>
<body>
<!-- Begin Block Tagged Note 7 - us-gaap:PropertyPlantAndEquipmentDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 7: Property, Plant and Equipment</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Property, plant and equipment consisted of the following (<i>in millions</i>):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Jun 28,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Sep 28,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Land
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">57.6</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">59.1</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Buildings
</div></td>
<td> </td>
<td> </td>
<td align="right">235.3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">217.7</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Leasehold improvements
</div></td>
<td> </td>
<td> </td>
<td align="right">3,308.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3,363.1</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Store equipment
</div></td>
<td> </td>
<td> </td>
<td align="right">1,076.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,045.3</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Roasting equipment
</div></td>
<td> </td>
<td> </td>
<td align="right">272.3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">220.7</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Furniture, fixtures and other
</div></td>
<td> </td>
<td> </td>
<td align="right">588.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">517.8</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Work in progress
</div></td>
<td> </td>
<td> </td>
<td align="right">124.1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">293.6</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right">5,662.8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,717.3</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Less accumulated depreciation and amortization
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(3,068.7</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2,760.9</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Property, plant and equipment, net
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">2,594.1</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">2,956.4</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
</div>
</body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<html>
<head></head>
<body>
<!-- Begin Block Tagged Note 8 - us-gaap:DebtDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 8: Debt</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company’s debt consisted of the following <i>(in millions)</i>:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Jun 28,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Sep 28,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Commercial paper program (weighted average interest rate 3.4%)
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">413.0</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Revolving credit facility (weighted average interest rate of 3.5%)
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">300.0</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Current portion of long-term debt
</div></td>
<td> </td>
<td> </td>
<td align="right">0.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.7</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Short-term debt
</div></td>
<td> </td>
<td> </td>
<td align="right">0.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">713.7</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">6.25% Senior Notes (due Aug 2017)
</div></td>
<td> </td>
<td> </td>
<td align="right">549.3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">549.2</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Other long-term debt
</div></td>
<td> </td>
<td> </td>
<td align="right">0.1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">0.4</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Long-term debt
</div></td>
<td> </td>
<td> </td>
<td align="right">549.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">549.6</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Total debt
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">549.8</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,263.3</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
</body>
</html>
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<html>
<head></head>
<body>
<!-- Begin Block Tagged Note 9 - us-gaap:OtherLiabilitiesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 9: Other Long-term Liabilities</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company’s other long-term liabilities consisted of the following <i>(in millions)</i>:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Jun 28,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Sep 28,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Deferred rent
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">275.4</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">303.9</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Unrecognized tax benefits
</div></td>
<td> </td>
<td> </td>
<td align="right">54.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">60.4</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Asset retirement obligations
</div></td>
<td> </td>
<td> </td>
<td align="right">43.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">44.6</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Minority interest
</div></td>
<td> </td>
<td> </td>
<td align="right">15.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18.3</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Other
</div></td>
<td> </td>
<td> </td>
<td align="right">18.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15.2</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">407.8</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">442.4</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
</body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<html>
<head></head>
<body>
<!-- Begin Block Tagged Note 10 - us-gaap:StockholdersEquityNoteDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 10: Shareholders’ Equity</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In addition to 1.2 billion shares of authorized common stock with $0.001 par value per share, the
Company has authorized 7.5 million shares of preferred stock, none of which was outstanding as of
June 28, 2009.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Share repurchase activity under the Company’s publicly announced plans was as follows <i>(in millions,
except for average price data)</i>:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>39 Weeks Ended</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Jun 28, 2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Jun 29, 2008</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Number of shares acquired
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12.2</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Average price per share of acquired shares
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">24.12</td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total accrual-based cost of acquired shares
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">295.3</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total cash-based cost of acquired shares
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">311.4</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Comprehensive Income</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Comprehensive income, net of related tax effects, was as follows (<i>in millions</i>):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>13 Weeks Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>39 Weeks Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Jun 28, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Jun 29, 2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Jun 28, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Jun 29, 2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net earnings/(loss)
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">151.5</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(6.7</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">240.8</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">310.1</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Unrealized holding gains/(losses) on available-for-sale securities
</div></td>
<td> </td>
<td> </td>
<td align="right">0.7</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(0.6</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">3.0</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(0.6</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Unrealized holding gains/(losses) on cash flow hedging instruments
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(10.7</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">0.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.1</td>
<td> </td>
</tr>
<tr valign="bottom">
<td nowrap="nowrap">
<div style="margin-left:30px; text-indent:-15px">Unrealized holding gains/(losses) on net investment hedging
instruments
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(5.1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">2.8</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2.4</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(2.6</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Reclassification adjustment for net (gains)/losses realized in
net earnings for cash flow hedges
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(1.1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">1.2</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(0.6</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">3.6</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net unrealized gain/(loss)
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(16.2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">4.1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.5</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Translation adjustment
</div></td>
<td> </td>
<td> </td>
<td align="right">26.6</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(9.6</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(15.5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">23.5</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total comprehensive income/(loss)
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">161.9</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(12.2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">240.2</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">335.1</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">The components of accumulated other comprehensive income, net of tax, were as follows <i>(in
millions)</i>:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Jun 28, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Sep 28, 2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net
unrealized gains/(losses) on available-for-sale securities
</div></td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(1.1</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(4.1</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net unrealized gains/(losses) on hedging instruments
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(10.3</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(22.2</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Translation adjustment
</div></td>
<td> </td>
<td> </td>
<td align="right">59.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">74.7</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Accumulated other comprehensive income
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">47.8</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">48.4</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
</div>
</body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
<html>
<head></head>
<body>
<!-- Begin Block Tagged Note 11 - sbux:EmployeeStockPlansTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 11: Employee Stock Plans</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company maintains several equity incentive plans under which it may grant non-qualified stock
options, incentive stock options, restricted stock, restricted stock units (“RSUs”), or stock
appreciation rights to employees, non-employee directors and consultants. As of June 28, 2009,
there were 36.5 million shares of common stock available for issuance pursuant to future
equity-based compensation awards.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Stock Option Exchange Program</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">On March 18, 2009, Starbucks shareholders approved a proposal to allow for a one-time stock option
exchange program, designed to provide eligible employees an opportunity to exchange certain
outstanding underwater stock options for a lesser amount of new options to be granted with lower
exercise prices. Stock options eligible for exchange were those with an exercise price per share
greater than $19.00 that were granted prior to December 1, 2007 under the Company’s Amended and
Restated 2005 Long-Term Equity Incentive Plan (the “2005 Plan”), the Amended and Restated Key
Employee Stock Option Plan-1994 or the 1991 Company-Wide Stock Option Plan. On May 1, 2009
Starbucks commenced the option exchange program, which expired on May 29, 2009. A total of 14.3
million eligible stock options were tendered by employees, representing 65% of the total stock
options eligible for exchange. On June 1, 2009, the Company granted an aggregate of 4.7 million
new stock options in exchange for the eligible stock options surrendered. The exercise price of the
new stock options is $14.92, which was the closing price of Starbucks common stock on June 1, 2009.
The new stock options were granted under the 2005 Plan. No incremental stock option
expense was recognized for the exchange, which was determined to be fair value neutral under SFAS
123(R), because the fair value of the surrendered options, as determined based on the Black-Scholes
option pricing model, was equal to the fair value, in the aggregate, of the eligible options being
exchanged.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company also has employee stock purchase plans (“ESPP”). The ESPP for US employees was amended
in March 2009 to change the employees’ purchase price to 95% of the fair market value of the stock
on the last business day of the quarterly offering period. Prior to the amendment, the employees’
purchase price was 85% of the lesser of the fair market value of the stock on the first business
day or the last business day of the quarterly offering period.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table presents total stock-based compensation expense recognized in the consolidated
statements of earnings (<i>in millions</i>):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>13 Weeks Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>39 Weeks Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Jun 28, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Jun 29, 2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Jun 28, 2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Jun 29, 2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Stock option expense
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">16.6</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">15.4</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">47.7</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">47.3</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">RSU expense
</div></td>
<td> </td>
<td> </td>
<td align="right">3.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">3.1</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">ESPP expense
</div></td>
<td> </td>
<td> </td>
<td align="right">0.1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9.3</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total stock-based compensation expense
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">20.6</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">20.4</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">63.1</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">59.7</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Options</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table presents the weighted average assumptions used to value stock options granted
outside of the stock option exchange program described above, along with the related weighted
average grant price for the 13-week and 39-week periods ended June 28, 2009 and June 29, 2008:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>13 Weeks Ended</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>39 Weeks Ended</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Jun 28, 2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Jun 29, 2008</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Jun 28, 2009</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Jun 29, 2008</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Expected term (in years)
</div></td>
<td> </td>
<td> </td>
<td align="right">4.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.7</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Expected stock price volatility
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">43.8</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">30.9</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">44.4</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">29.1</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Risk-free interest rate
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">2.0</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">3.2</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">2.2</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">3.5</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Expected dividend yield
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">0.0</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">0.0</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">0.0</td>
<td nowrap="nowrap">%</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">0.0</td>
<td nowrap="nowrap">%</td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Weighted average grant price
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">12.90</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">17.44</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">8.78</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">22.39</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Estimated fair value per option granted
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">4.93</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">5.40</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">3.54</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">6.93</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The assumptions used to calculate the fair value of stock options granted are evaluated and
revised, as necessary, to reflect market conditions and the Company’s experience.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table summarizes all stock option transactions from September 29, 2008 through June
28, 2009 (<i>in millions, except per share and contractual life amounts):</i>
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Weighted</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Weighted</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Average</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Average</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Shares</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Exercise</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Remaining</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Aggregate</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Subject to</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Price</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Contractual</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Intrinsic</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Options</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>per Share</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Life (Years)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Value</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Outstanding, September 28, 2008
</div></td>
<td> </td>
<td> </td>
<td align="right">63.0</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">20.96</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5.7</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">114.9</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Granted
</div></td>
<td> </td>
<td> </td>
<td align="right">34.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">9.60</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Exercised
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(4.6</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">6.17</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Forfeited/Cancelled/Exchanged
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(25.6</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">24.94</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Outstanding, June 28, 2009
</div></td>
<td> </td>
<td> </td>
<td align="right">67.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14.59</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">216.3</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom"><!-- Blank Space -->
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Exercisable, June 28, 2009
</div></td>
<td> </td>
<td> </td>
<td align="right">30.1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">17.19</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">67.5</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Vested and expected to vest, June 28, 2009
</div></td>
<td> </td>
<td> </td>
<td align="right">60.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15.00</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">183.1</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The closing market value of the Company’s stock on June 26, 2009 was $14.53. As of June 28, 2009,
total unrecognized stock-based compensation expense related to nonvested stock options was
approximately $79 million, before income taxes, and is expected to be recognized over a weighted
average period of approximately 2.9 years.
</div>
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>RSUs</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company has both time-vested and performance-based RSUs. Time-vested RSUs are awarded to
eligible employees and entitle the grantee to receive shares of common stock at the end of a
vesting period, subject solely to the employee’s continuing employment. The Company’s
performance-based RSUs are awarded to eligible employees and entitle the grantee to receive shares
of common stock if the Company achieves target earnings per share for the full fiscal year in the
year of award, and the grantee remains employed during the subsequent vesting period. The fair
value of RSUs is based on the closing price of Starbucks common stock on the award date. Expense
for performance-based RSUs is recognized when it is probable the performance goal will be achieved.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table summarizes all RSU transactions from September 29, 2008 through June 28, 2009
(<i>in millions, except per share and contractual life amounts)</i>:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Weighted</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Weighted</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Average</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Average</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Number</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Grant Date</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Remaining</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Aggregate</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>of</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Fair Value</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Contractual</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Intrinsic</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Shares</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>per Share</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Life (Years)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Value</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Nonvested, September 28, 2008
</div></td>
<td> </td>
<td> </td>
<td align="right">2.0</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">17.36</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2.5</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">30.5</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Granted
</div></td>
<td> </td>
<td> </td>
<td align="right">3.3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">8.71</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Vested
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Forfeited/Cancelled
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(0.8</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">14.21</td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Nonvested, June 28, 2009
</div></td>
<td> </td>
<td> </td>
<td align="right">4.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11.63</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">66.0</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td> </td>
<td align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">As of June 28, 2009, total unrecognized stock-based compensation expense related to nonvested RSUs
was approximately $37 million, before income taxes, and is expected to be recognized over a
weighted average period of approximately 2.6 years.
</div>
<!-- Folio -->
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<div style="font-family: 'Times New Roman',Times,serif">
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<body>
<!-- Begin Block Tagged Note 12 - us-gaap:EarningsPerShareTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 12: Earnings/(Loss) Per Share</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table presents the calculation of net earnings/(loss) per common share (“EPS”) —
basic and diluted (<i>in millions, except EPS</i>):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="52%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>13 Weeks Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>39 Weeks Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Jun 28,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Jun 29,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Jun 28,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Jun 29,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2008</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net earnings/(loss)
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">151.5</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(6.7</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">240.8</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">310.1</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Weighted average common shares and common stock units
outstanding (for basic calculation)
</div></td>
<td> </td>
<td> </td>
<td align="right">739.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">731.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">737.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">730.7</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Dilutive effect of outstanding common stock options and RSUs
</div></td>
<td> </td>
<td> </td>
<td align="right">7.3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">4.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11.0</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Weighted average common and common equivalent shares
outstanding (for diluted calculation)
</div></td>
<td> </td>
<td> </td>
<td align="right">746.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">731.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">741.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">741.7</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">EPS — basic
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">0.20</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(0.01</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">0.33</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.42</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">EPS — diluted
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">0.20</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="left">$</td>
<td align="right">(0.01</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td align="left">$</td>
<td align="right">0.32</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">0.42</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Potential dilutive shares consist of the incremental common shares issuable upon the exercise of
outstanding stock options (both vested and non-vested) and unvested RSUs, using the treasury stock
method. Potential dilutive shares are excluded from the computation of earnings per share if their
effect is antidilutive.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The number of antidilutive options and RSUs totaled 37.3 million for the 13-week period ended June
28, 2009. Potential dilutive options and RSUs of 69.8 million for the 13-week period ended June
29, 2008 were not included in the computation of diluted net loss per common share, because to do
so would have decreased the loss per share for the period. The number of antidilutive options and
RSUs totaled 62.6 million and 40.7 million for the 39-week periods ended June 28, 2009 and June 29,
2008, respectively.
</div>
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<!-- Begin Block Tagged Note 13 - us-gaap:CommitmentsAndContingenciesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 13: Commitments and Contingencies</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><i>Guarantees</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following table presents information on unconditional guarantees as of June 28, 2009 (<i>in
millions</i>):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="64%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%" nowrap="nowrap">     </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%" nowrap="nowrap">     </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Fair value estimate</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Maximum</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Year Guarantee</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>recorded on</b></td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Exposure</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Expires in</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Balance Sheet</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Japanese yen-denominated bank loans
(Starbucks Japan — an unconsolidated equity
investee)
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">3.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2014</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right">$</td>
<td align="right">—</td>
<td nowrap="nowrap"> <sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Borrowings of other unconsolidated equity investees
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">17.1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2012</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">3.7</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left">(1)</td>
<td> </td>
<td>Since there has been no modification of these loan guarantees subsequent to the Company’s
adoption of FASB Interpretation No. 45, “Guarantor’s Accounting and Disclosure Requirements
for Guarantees, Including Indirect Guarantees of Indebtedness of Others,” Starbucks has
applied the disclosure provisions only and has not recorded the guarantees on its consolidated
balance sheets.</td>
</tr>
</table>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><i>Legal Proceedings</i>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">On October 8, 2004, a former hourly employee of the Company filed a lawsuit in San Diego County
Superior Court entitled <i>Jou Chau v. Starbucks Coffee Company</i>. The lawsuit alleges that the Company
violated the California Labor Code by allowing shift supervisors to receive tips. More
specifically, the lawsuit alleges that since shift supervisors direct the work of baristas, they
qualify as “agents” of the Company and are therefore excluded from receiving tips under California
Labor Code Section 351, which prohibits employers and their agents from collecting or receiving
tips left by patrons for other employees. The lawsuit further alleges that because the tipping
practices violate the Labor Code, they also are unfair practices under the California Unfair
Competition Law. In addition to recovery of an unspecified amount of tips distributed to shift
supervisors, the lawsuit seeks penalties under California Labor Code Section 203 for willful
failure to pay wages due. Plaintiff also seeks attorneys’ fees and costs. On February 28, 2008, the
trial court ruled against the Company in the liability phase of the trial and on March 20, 2008 the
court ordered the Company to pay approximately $87 million in restitution, plus interest. The
Company appealed the decision of the trial court and on June 2, 2009 the California Court of Appeal
reversed the trial court’s judgment in its entirety and ruled in favor of Starbucks. The Court of
Appeal denied plaintiffs’ petition for rehearing and reaffirmed its ruling on July 2, 2009. The
plaintiffs have filed a petition with the California Supreme Court on July 13, 2009 seeking review
of the decision of the Court of Appeal. Starbucks believes that the likelihood that the Company
will ultimately incur a loss in connection with this litigation is reasonably possible rather than
probable. The Company has not accrued any loss related to this
litigation.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"> On June 30, 2005, three individuals, Erik Lords, Hon Yeung, and Donald Brown, filed a lawsuit in
Orange County Superior Court, California. The lawsuit alleges that the Company violated the
California Labor Code section 432.8 by asking job applicants to disclose
at the time of application convictions for marijuana-related offenses more than two years old. The
California Court of Appeals issued a ruling on December 10, 2008 instructing the trial judge to
enter summary judgment against plaintiffs and the California Supreme Court has rejected the
plaintiffs’ appeal. The matter is now back before the trial court awaiting final dismissal.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company is party to various other legal proceedings arising in the ordinary course of its
business, but it is not currently a party to any legal proceeding that management believes would
have a material adverse effect on the consolidated financial position or results of operations of
the Company.
</div>
<!-- Folio -->
<!-- /Folio -->
</div>
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<div style="font-family: 'Times New Roman',Times,serif">
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<!-- Begin Block Tagged Note 14 - us-gaap:SegmentReportingDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Note 14: Segment Reporting</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">Segment information is prepared on the same basis that the Company’s management reviews financial
information for operational decision making purposes. The tables below present information by
operating segment (<i>in millions</i>):
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="40%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
<td width="5%"> </td>
<td width="3%"> </td>
<td width="1%"> </td>
<td width="3%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>United</b></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"><b>Unallocated</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>States</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>International</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Global CPG</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Corporate</b><sup style="font-size: 85%; vertical-align: text-top"><b>(1)</b></sup></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Total</b></td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>13 Weeks Ended</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><i>June 28, 2009</i>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Company-operated retail revenues
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">1,613.2</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">400.6</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">2,013.8</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Licensing revenues
</div></td>
<td> </td>
<td> </td>
<td align="right">129.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">65.3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">106.3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">301.0</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Foodservice and other revenues
</div></td>
<td> </td>
<td> </td>
<td align="right">77.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">89.1</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total net revenues
</div></td>
<td> </td>
<td> </td>
<td align="right">1,820.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">477.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">106.3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,403.9</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Depreciation and amortization expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">95.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">26.3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">11.8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">133.7</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income from equity investees
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">29.7</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Operating income/(loss)
</div></td>
<td> </td>
<td> </td>
<td align="right">204.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">34.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">49.2</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(84.2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">204.0</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Earnings/(loss) before income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right">212.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">47.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">49.2</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(91.6</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">217.3</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net impairment and disposition losses
</div></td>
<td> </td>
<td> </td>
<td align="right">32.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">6.8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">13.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">53.3</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><i>June 29, 2008</i>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Company-operated retail revenues
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">1,730.4</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">449.8</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">2,180.2</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Licensing revenues
</div></td>
<td> </td>
<td> </td>
<td align="right">119.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">71.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">90.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">281.3</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Foodservice and other revenues
</div></td>
<td> </td>
<td> </td>
<td align="right">98.1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">112.5</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Total net revenues
</div></td>
<td> </td>
<td> </td>
<td align="right">1,947.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">535.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">90.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">2,574.0</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Depreciation and amortization expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">101.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">27.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">10.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">139.8</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Income/(loss) from equity investees
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(0.6</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">14.8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">14.8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">29.0</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Operating income/(loss)
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(27.8</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">35.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">48.7</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(78.0</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(21.6</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Earnings/(loss) before income taxes
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(25.9</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">35.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">48.7</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(91.5</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(33.2</td>
<td nowrap="nowrap">)</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Net impairment and disposition losses
</div></td>
<td> </td>
<td> </td>
<td align="right">194.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(0.3</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">195.1</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px"><b>39 Weeks Ended</b>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><i>June 28, 2009</i>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Company-operated retail revenues
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">4,977.2</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1,174.6</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">6,151.8</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Licensing revenues
</div></td>
<td> </td>
<td> </td>
<td align="right">404.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">198.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">315.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">918.1</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Foodservice and other revenues
</div></td>
<td> </td>
<td> </td>
<td align="right">248.8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">33.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">282.5</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total net revenues
</div></td>
<td> </td>
<td> </td>
<td align="right">5,630.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,406.8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">315.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,352.4</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Depreciation and amortization expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">290.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">75.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">36.3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">402.1</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income from equity investees
</div></td>
<td> </td>
<td> </td>
<td align="right">0.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">38.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">39.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">78.4</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Operating income/(loss)
</div></td>
<td> </td>
<td> </td>
<td align="right">429.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">53.3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">146.0</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(265.9</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">362.6</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Earnings/(loss) before income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right">447.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">60.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">146.0</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(303.0</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">350.5</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net impairment and disposition losses
</div></td>
<td> </td>
<td> </td>
<td align="right">106.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">38.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">54.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">199.0</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"><i>June 29, 2008</i>
</div></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Company-operated retail revenues
</div></td>
<td> </td>
<td align="right">$</td>
<td align="right">5,346.2</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">1,328.4</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td align="right">$</td>
<td align="right">6,674.6</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:30px; text-indent:-15px">Licensing revenues
</div></td>
<td> </td>
<td> </td>
<td align="right">372.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">200.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">287.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">860.5</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:30px; text-indent:-15px">Foodservice and other revenues
</div></td>
<td> </td>
<td> </td>
<td align="right">291.8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">40.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">332.5</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Total net revenues
</div></td>
<td> </td>
<td> </td>
<td align="right">6,010.2</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">1,569.8</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">287.6</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">7,867.6</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Depreciation and amortization expenses
</div></td>
<td> </td>
<td> </td>
<td align="right">302.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">80.1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">28.5</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">411.1</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Income/(loss) from equity investees
</div></td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(0.9</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">42.1</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">35.9</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">77.1</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Operating income/(loss)
</div></td>
<td> </td>
<td> </td>
<td align="right">477.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">107.4</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">142.0</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(236.7</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">489.7</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Earnings/(loss) before income taxes
</div></td>
<td> </td>
<td> </td>
<td align="right">486.3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">116.3</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">142.0</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(283.9</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">460.7</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Net impairment and disposition losses
</div></td>
<td> </td>
<td> </td>
<td align="right">225.7</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">12.0</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="right"> </td>
<td align="right">(0.2</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td> </td>
<td align="right">237.5</td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left">
<div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000"> 
</div>
</div>
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left">
<tr>
<td width="3%"></td>
<td width="1%"></td>
<td width="96"></td>
</tr>
<tr valign="top">
<td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td>
<td> </td>
<td>Unallocated Corporate includes expenses pertaining to corporate administrative
functions that support the operating segments but are not specifically attributable to or
managed by any operating segment and are not included in the reported financial results of the
operating segments. These unallocated corporate expenses include certain general and
administrative expenses, related depreciation and amortization expenses, restructuring
charges, and amounts included in “Interest income and other, net” and “Interest expense” on
the consolidated statements of earnings.</td>
</tr>
</table>
<!-- Folio -->
<!-- /Folio -->
</div>
<!-- PAGEBREAK -->
</body>
</html>
false
--09-27
2009-06-28
10-Q
0000829224
737100000
Yes
Large Accelerated Filer
12100000000
STARBUCKS CORPORATION
No
Yes
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