Deferred Revenue

9 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer

Deferred Revenue

Our deferred revenue primarily consists of the prepaid royalty from Nestlé, for which we have continuing performance obligations to support the Global Coffee Alliance, our unredeemed stored value card liability, and unredeemed loyalty points (“Stars”) associated with our loyalty program.

As of June 30, 2024, the current and long-term deferred revenue related to the Nestlé up-front payment was $177.0 million and $5.9 billion, respectively. As of October 1, 2023, the current and long-term deferred revenue related to the Nestlé up-front payment was $177.0 million and $6.0 billion, respectively. During each of the quarters ended June 30, 2024 and July 2, 2023, we recognized $44.1 million of prepaid royalty revenue related to Nestlé. During each of the three quarters ended June 30, 2024 and July 2, 2023, we recognized $132.3 million of prepaid royalty revenue related to Nestlé.

Changes in our deferred revenue balance related to our stored value cards and loyalty program (in millions):

Quarter Ended June 30, 2024	Total
Stored value cards and loyalty program at March 31, 2024	$	1,818.9
Revenue deferred - card activations, card reloads and Stars earned	3,833.4
Revenue recognized - card and Stars redemptions and breakage	(3,870.2)
Other(1)	(8.3)
Stored value cards and loyalty program at June 30, 2024(2)	$	1,773.8
Quarter Ended July 2, 2023	Total
Stored value cards and loyalty program at April 2, 2023	$	1,664.5
Revenue deferred - card activations, card reloads and Stars earned	3,641.3
Revenue recognized - card and Stars redemptions and breakage	(3,662.9)
Other(1)	(14.7)
Stored value cards and loyalty program at July 2, 2023(2)	$	1,628.2
Three Quarters Ended June 30, 2024	Total
Stored value cards and loyalty program at October 1, 2023	$	1,567.5
Revenue deferred - card activations, card reloads and Stars earned	11,977.1
Revenue recognized - card and Stars redemptions and breakage	(11,761.0)
Other(1)	(9.8)
Stored value cards and loyalty program at June 30, 2024(2)	$	1,773.8
Three Quarters Ended July 2, 2023	Total
Stored value cards and loyalty program at October 2, 2022	$	1,503.0
Revenue deferred - card activations, card reloads and Stars earned	11,280.7
Revenue recognized - card and Stars redemptions and breakage	(11,155.4)
Other(1)	(0.1)
Stored value cards and loyalty program at July 2, 2023(2)	$	1,628.2

(1)“Other” primarily consists of changes in the stored value cards and loyalty program balances resulting from foreign currency translation.

(2)As of June 30, 2024 and July 2, 2023, approximately $1.6 billion and $1.5 billion, respectively, of these amounts were current.