Assumptions

Operating expenses
Depreciation
Growth in Income from equity investments
Interest rate on debt
Interest income on short-term investments
Tax rate
Cash balance
A/R turnover
Inventory turnover
Prepaid expenses
Fixed asset turnover
Assets retired each year
Accounts payable turnover
Other current liabilities
Other long term liabilities
Stock based compensation expense

38.0%
9.5%
5.0%
6.25%
3.0%
35.0%
6.0%
34.0
8.0
1.5%
4.5
10.0%
18.0
13.0%
4.0%
2.5%

(% of sales)
(% of beginning gross book value of PPE)

(% of sales)

(% of sales)
(% of beginning balance of Accumulated depreciation)
(% of sales)
(% of sales)
(% of operating expenses)

Manipulate highlighted cells

STARBUCKS CORP
SALES FORECAST1
(in $ millions)

Fiscal Year

Historical ->
2009

Proforma ->
2011

2010

2012

2013

2014

Segment Forecasts: Net Sales

US
Change in Transaction Volume
Change in Value per Transaction
Comparable Store Sales Growth
Net Store Growth (%)
# Stores
Net Sales

-4.0%
-2.0%
-5.9%

3.0%
4.0%
7.1%

3.0%
2.0%
5.1%

2.9%
2.0%
5.0%

2.8%
2.0%
4.9%

2.7%
2.0%
4.8%

11,128

0.0%
11,131

3.0%
11,465

2.8%
11,786

2.6%
12,092

2.4%
12,383

7,062

7,560

8,181

8,827

9,497

10,187

7.06%

8.21%

7.90%

7.58%

7.27%

2,941
4,120

2,906
4,654

3,272
4,909

3,531
5,296

3,799
5,698

4,075
6,112

Year-over-Year Growth %

Cost of Sales
Gross Margin

58.3%

61.6%

60.0%

60.0%

60.0%

60.0%

International
Change in Transaction Volume
Change in Value per Transaction
Comparable Store Sales Growth

% of Sales

N/A
N/A
-2.0%

5.0%
1.0%
6.1%

5.0%
2.0%
7.1%

4.7%
2.0%
6.8%

4.4%
2.0%
6.5%

4.1%
2.0%
6.2%

Net Store Growth (%)

# Stores

5,507

4.0%
5,727

4.0%
5,956

3.6%
6,170

3.2%
6,368

2.8%
6,546

Net Sales

1,914

3,383

Year-over-Year Growth %

2,289

2,549

2,821

3,100

19.56%

11.38%

10.64%

9.90%

9.16%

Cost of Sales
Gross Margin

961
953

1,078
1,211

1,275
1,275

1,410
1,410

1,550
1,550

1,692
1,692

% of Sales

49.8%

52.9%

50.0%

50.0%

50.0%

50.0%

Global CPG
Net Sales

674

707

743

778

814

850

4.9%

5.0%

4.8%

4.6%

4.4%

Year-over-Year Growth %

Cost of Sales
Gross Margin

351
324

385
323

394
349

413
366

432
383

451
400

% of Sales

48.0%

45.6%

47.0%

47.0%

47.0%

47.0%

206

222

Other
Net Sales

124

151

173

191

21.4%

15.0%

10.0%

8.0%

7.8%

72
53

89
61

104
69

114
76

124
82

133
89

42.3%

40.7%

40.0%

40.0%

40.0%

40.0%

7,062
1,914
674
124
9,775

7,560
2,289
707
151
10,707

8,181
2,549
743
173
11,647

8,827
2,821
778
191
12,617

9,497
3,100
814
206
13,617

10,187
3,383
850
222
14,642

9.5%

8.8%

8.3%

7.9%

7.5%

2,941
961
351
72
4,325

2,906
1,078
385
89
4,459

3,272
1,275
394
104
5,045

3,531
1,410
413
114
5,468

3,799
1,550
432
124
5,904

4,075
1,692
451
133
6,350

44.2%

41.6%

43.3%

43.3%

43.4%

43.4%

4,120
953
324
53
5,450

4,654
1,211
323
61
6,249

4,909
1,275
349
69
6,602

5,296
1,410
366
76
7,149

5,698
1,550
383
82
7,713

6,112
1,692
400
89
8,292

55.8%

58.4%

56.7%

56.7%

56.6%

56.6%

Year-over-Year Growth %

Cost of Sales
Gross Margin
% of Sales

Summary
Net Sales
US
International
Global CPG
Other
Total
Year-over-Year Growth %

Cost of Sales
US
International
Global CPG
Other
Total
% of Sales

Gross Margin
US
International
Global CPG
Other
Total
% of Sales

1) Historical data begins in 2009, the year this information was provided in the annual report.

STARBUCKS CORP
CONSOLIDATED INCOME STATEMENT
(in $ millions, except per share amounts)

Fiscal Year

Historical ->
2006

2007

2008

2009

Proforma ->
2011

2010

2012

2013

2014

Net sales

7,787

9,412

10,383

9,775

10,707

11,647

12,617

13,617

14,642

Cost of goods sold

Gross margin

3,179
4,608

3,999
5,412

4,645
5,738

4,325
5,450

4,459
6,249

5,045
6,602

5,468
7,149

5,904
7,713

6,350
8,292

Depreciation and amortization

Operating expenses
Total expenses

387
3,421
3,808

467
3,999
4,467

549
4,798
5,347

535
4,475
5,010

510
4,467
4,978

531
4,426
4,957

566
4,794
5,361

606
5,174
5,780

648
5,564
6,213

Income from equity investees

94

108

114

122

148

156

163

171

180

894

1,054

504

562

1,419

1,800

1,952

2,104

2,260

Interest expense
Interest income

Operating income

8
-21

38
-40

53
-9

39
-36

33
-48

34
-9

0
-9

0
-9

0
-9

Earnings before income taxes

906

1,056

459

559

1,434

1,774

1,960

2,113

2,268

Income taxes
Effect of an accounting change

325
-17

384

144

168

489

621

686

739

794

Net earnings

564

673

315

391

946

1,153

1,274

1,373

1,474

STARBUCKS CORP
CONSOLIDATED BALANCE SHEETS
(in $ millions, except per share amounts)

Fiscal Year

Historical ->
2006

2007

2008

2009

2010

Proforma ->
2011

2012

2013

2014

ASSETS
Current Assets
Cash and equivalents
Short-term investments
Accounts receivable
Inventory
Prepaid expenses and other
Deferred income taxes, net
Total Current Assets

313
141
224
636
127
89

281
157
288
692
149
130

270
53
330
693
169
234

600
66
271
665
147
287

1,164
286
303
543
157
304

699
286
343
631
175
304

757
286
371
684
189
304

817
286
400
738
204
304

879
286
431
794
220
304

1,530

1,697

1,748

2,036

2,756

2,437

2,591

2,750

2,913

4,258
-1,970

5,307
-2,416

5,717
-2,760

5,701
-3,165

5,889
-3,472

6,273
-3,684

6,716
-3,912

7,185
-4,159

7,679
-4,425

2,288

2,890

2,956

2,536

2,417

2,588

2,804

3,026

3,254

6
219
386

21
259
477

71
303
594

71
352
581

192
342
680

192
497
680

192
660
680

192
832
680

192
1,012
680

4,429

5,344

5,673

5,577

6,386

6,393

6,926

7,479

8,050

341
1
1,594

391
1
1,764

325
1
1,864

267
0
1,314

283
0
1,497

285
0
1,514

307
0
1,640

331
0
1,770

356
0
1,904

1,936

2,156

2,190

1,581

1,779

1,799

1,947

2,101

2,259

2
263

550
354

550
442

549
390

549
375

0
466

0
505

0
545

0
586

265

904

992

939

925

466

505

545

586

2,229

2,284

2,491

3,057

3,682

4,128

4,475

4,833

5,205

4,429

5,344

5,673

5,577

6,386

6,393

6,926

7,479

8,050

Property and Equipment

Gross Property and Equipment
Accumulated depreciation and amortization
Net Property and Equipment
Long-term investments
Equity and cost investments
Intangible and other assets
Total Assets

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
Accounts payable
Current portion of long-term debt
Other current liabilities
Total Current Liabilities
Long-Term Liabilities
Long-term debt
Other long-term liabilities
Total Long-term liabilities
Stockholders' Equity
Total Stockholders' Equity
Total Liabilities and Shareholders' Equity

STARBUCKS CORP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in $ millions, except per share amounts)

Fiscal Year

Historical ->
2006

2007

2008

2009

Proforma ->
2011

2010

2012

2013

2014

Cash Flows from Operating Activities

564

673

312

392

948

1,153

1,274

1,373

1,474

17
413
20
-84
-61
49
106
1
-117
2

0
491
26
-37
-66
66
104
8
-93
1

0
605
325
-117
-61
53
75
4
-15
-0

0
563
224
-70
-78
53
83
2
-16
5

0
541
68
-42
-109
91
114
14
-37
-15

0
559
0
0
-156
0
111
0
0
0

0
596
0
0
-163
0
120
0
0
0

0
638
0
0
-171
0
129
0
0
0

0
683
0
0
-180
0
139
0
0
0

-86
105
133
57
-41
54
1,132

-49
36
86
63
-16
39
1,331

-1
-64
7
72
-11
75
1,259

29
-53
57
16
121
61
1,389

123
-4
-13
24
-16
18
1,705

-87
3
0
0
-58
108
1,633

-53
22
0
0
-43
165
1,917

-54
24
0
0
-44
170
2,064

-56
25
0
0
-46
174
2,214

-639
269
431
-92
-39
-771
0
-841

-237
178
48
-53
-57
-1,080
0
-1,202

-72
20
76
-74
-52
-985
0
-1,087

-129
111
5
0
-5
-446
43
-421

-549
210
1
-12
1
-441
0
-790

0
0
0
0
0
-731
0
-731

0
0
0
0
0
-812
0
-812

0
0
0
0
0
-860
0
-860

0
0
0
0
0
-911
0
-911

0
0
1,416
-993
0
159
117
-1
0
0
-854
-155

17,311
-16,601
770
-1,470
0
177
93
-1
0
0
-451
-172

65,771
-66,068
528
-229
0
112
15
-1
0
-311
-2
-184

20,965
-21,379
1,338
-1,638
0
57
16
-1
0
0
-2
-642

0
0
0
0
-46
128
37
-7
-171
-286
-2
-346

0
0
0
0
0
0
0
-549
-818
0
0
-1,368

0
0
0
0
0
0
0
0
-1,047
0
0
-1,047

0
0
0
0
0
0
0
0
-1,144
0
0
-1,144

0
0
0
0
0
0
0
0
-1,242
0
0
-1,242

Effect of exchange rate changes on cash and cash equivalents

Net increase/(decrease) in cash and cash equivalents

4
139

11
-31

1
-12

4
330

-5
564

0
-465

0
58

0
60

0
62

Cash and Cash Equivalents

Beginning of period
End of period
check on change in cash

174
313
139

313
282
-31

281
270
-12

270
600
330

600
1,164
564

1,164
699
-465

699
757
58

757
817
60

817
879
62

Net earnings including noncontrolling interests

Adjustments to reconcile net earnings to net cash provided
by operating activities:
Cumulative effect of accounting change for FIN 47, net of taxes
Depreciation and amortization
Provision for impairments and asset disposals
Deferred income taxes, net
Equity in income of investees
Distributions of income from equity investees
Stock-based compensation
Tax benefit from exercise of stock options
Excess tax benefit from exercise of stock options
Other
Change in operating assets and liabilities
Inventories
Accounts payable
Accrued taxes
Deferred revenue
Other current operating assets (A/R, Ppd exp)
Other operating liabilities (other CL and other LT liab)
Net cash provided by operating activities
Cash Flows from Investing Activities
Purchase of available-for-sale securities
Maturities and calls of available-for-sale securities
Sales of available-for-sale securities
Acquisitions, net of cash acquired
Net purchases of equity, other investments and other assets
Additions to property, plant and equipment
Proceeds from sale of property, plant and equipment
Net cash used by investing activities
Cash Flows from Financing Activities
Proceeds from issuance of commercial paper
Repayments of commercial paper
Proceeds from short-term borrowings
Repayments of short-term borrowings
Purchase of noncontrolling interest
Proceeds from issuance of common stock
Excess tax benefit from exercise of stock options
Principal payments on long-term debt
Cash dividends paid
Repurchase of common stock
Other
Net cash used by financing activities