| Equity |
Equity Changes in total equity (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | Two Quarters Ended | | Mar 29, 2015 | | Mar 30, 2014 | | Attributable to Starbucks | | Noncontrolling interest | | Total Equity | | Attributable to Starbucks | | Noncontrolling interest | | Total Equity | Beginning balance of total equity | $ | 5,272.0 |
| | $ | 1.7 |
| | $ | 5,273.7 |
| | $ | 4,480.2 |
| | $ | 2.1 |
| | $ | 4,482.3 |
| Net earnings including noncontrolling interests | 1,478.3 |
| | 2.1 |
| | 1,480.4 |
| | 967.6 |
| | — |
| | 967.6 |
| Translation adjustment, net of reclassifications and tax | (110.3 | ) | | (31.1 | ) | | (141.4 | ) | | (26.1 | ) | | — |
| | (26.1 | ) | Unrealized gains/(losses), net of reclassifications and tax | (0.8 | ) | | — |
| | (0.8 | ) | | 23.4 |
| | — |
| | 23.4 |
| Other comprehensive income/(loss) | (111.1 | ) | | (31.1 | ) | | (142.2 | ) | | (2.7 | ) | | — |
| | (2.7 | ) | Stock-based compensation expense | 105.2 |
| | — |
| | 105.2 |
| | 92.6 |
| | — |
| | 92.6 |
| Exercise of stock options/vesting of RSUs | 104.6 |
| | — |
| | 104.6 |
| | 90.0 |
| | — |
| | 90.0 |
| Sale of common stock | 11.3 |
| | — |
| | 11.3 |
| | 11.0 |
| | — |
| | 11.0 |
| Repurchase of common stock | (342.4 | ) | | — |
| | (342.4 | ) | | (301.2 | ) | | — |
| | (301.2 | ) | Cash dividends declared | (479.9 | ) | | — |
| | (479.9 | ) | | (392.5 | ) | | — |
| | (392.5 | ) | Noncontrolling interest resulting from acquisition | — |
| | 411.1 |
| | 411.1 |
| | — |
| | — |
| | — |
| Purchase of noncontrolling interests | (29.3 | ) | | (381.8 | ) | | (411.1 | ) | | — |
| | — |
| | — |
| Ending balance of total equity | $ | 6,008.7 |
| | $ | 2.0 |
| | $ | 6,010.7 |
| | $ | 4,945.1 |
| | $ | 2.0 |
| | $ | 4,947.1 |
|
Changes in accumulated other comprehensive income ("AOCI") by component, net of tax (in millions): Quarter Ended | | | | | | | | | | | | | | | | | | | | | | Available-for-Sale Securities | | Cash Flow Hedges | | Net Investment Hedges | | Translation Adjustment | | Total | March 29, 2015 | | | | | | | | | | Net gains/(losses) in AOCI, beginning of period | $ | (0.9 | ) | | $ | 32.9 |
| | $ | 1.3 |
| | $ | (130.3 | ) | | $ | (97.0 | ) | Net gains/(losses) recognized in OCI before reclassifications | 1.7 |
| | 9.7 |
| | — |
| | (3.1 | ) | | 8.3 |
| Net (gains)/losses reclassified from AOCI to earnings | (0.4 | ) | | 4.0 |
| | — |
| | — |
| | 3.6 |
| Other comprehensive income/(loss) attributable to Starbucks | 1.3 |
| | 13.7 |
| | — |
| | (3.1 | ) | | 11.9 |
| Purchase of noncontrolling interests | — |
| | — |
| | — |
| | (31.8 | ) | | (31.8 | ) | Net gains/(losses) in AOCI, end of period | $ | 0.4 |
| | $ | 46.6 |
| | $ | 1.3 |
| | $ | (165.2 | ) | | $ | (116.9 | ) | | | | | | | | | | | March 30, 2014 | | | | | | | | | | Net gains/(losses) in AOCI, beginning of period | $ | (1.7 | ) | | $ | 42.2 |
| | $ | (6.7 | ) | | $ | 34.9 |
| | $ | 68.7 |
| Net gains/(losses) recognized in OCI before reclassifications | 0.7 |
| | 6.0 |
| | (2.5 | ) | | (7.4 | ) | | (3.2 | ) | Net (gains)/losses reclassified from AOCI to earnings | 0.2 |
| | (1.4 | ) | | — |
| | — |
| | (1.2 | ) | Other comprehensive income/(loss) attributable to Starbucks | 0.9 |
| | 4.6 |
| | (2.5 | ) | | (7.4 | ) | | (4.4 | ) | Net gains/(losses) in AOCI, end of period | $ | (0.8 | ) | | $ | 46.8 |
| | $ | (9.2 | ) | | $ | 27.5 |
| | $ | 64.3 |
|
Two Quarters Ended | | | | | | | | | | | | | | | | | | | | | | Available-for-Sale Securities | | Cash Flow Hedges | | Net Investment Hedges | | Translation Adjustment | | Total | March 29, 2015 | | | | | | | | | | Net gains/(losses) in AOCI, beginning of period | $ | (0.4 | ) | | $ | 46.3 |
| | $ | 3.2 |
| | $ | (23.8 | ) | | $ | 25.3 |
| Net gains/(losses) recognized in OCI before reclassifications | 1.3 |
| | 48.5 |
| | 2.7 |
| | (124.6 | ) | | (72.1 | ) | Net (gains)/losses reclassified from AOCI to earnings | (0.5 | ) | | (48.2 | ) | | (4.6 | ) | | 14.3 |
| | (39.0 | ) | Other comprehensive income/(loss) attributable to Starbucks | 0.8 |
| | 0.3 |
| | (1.9 | ) | | (110.3 | ) | | (111.1 | ) | Purchase of noncontrolling interests | — |
| | — |
| | — |
| | (31.1 | ) | | (31.1 | ) | Net gains/(losses) in AOCI, end of period | $ | 0.4 |
| | $ | 46.6 |
| | $ | 1.3 |
| | $ | (165.2 | ) | | $ | (116.9 | ) | | | | | | | | | | | March 30, 2014 | | | | | | | | | | Net gains/(losses) in AOCI, beginning of period | $ | (0.5 | ) | | $ | 26.8 |
| | $ | (12.9 | ) | | $ | 53.6 |
| | $ | 67.0 |
| Net gains/(losses) recognized in OCI before reclassifications | (0.5 | ) | | 13.9 |
| | 3.7 |
| | (26.1 | ) | | (9.0 | ) | Net (gains)/losses reclassified from AOCI to earnings | 0.2 |
| | 6.1 |
| | — |
| | — |
| | 6.3 |
| Other comprehensive income/(loss) attributable to Starbucks | (0.3 | ) | | 20.0 |
| | 3.7 |
| | (26.1 | ) | | (2.7 | ) | Net gains/(losses) in AOCI, end of period | $ | (0.8 | ) | | $ | 46.8 |
| | $ | (9.2 | ) | | $ | 27.5 |
| | $ | 64.3 |
|
Impact of reclassifications from AOCI on the consolidated statements of earnings (in millions): Quarter Ended | | | | | | | | | | | | AOCI Components | | Amounts Reclassified from AOCI | | Affected Line Item in the Statements of Earnings | | Mar 29, 2015 | | Mar 30, 2014 | | Gains/(losses) on cash flow hedges | | | | | | | Interest rate hedges | | $ | 1.3 |
| | $ | 1.3 |
| | Interest expense | Cross-currency swaps | | (10.6 | ) | | — |
| | Interest income and other, net | Foreign currency hedges | | 3.4 |
| | 1.3 |
| | Revenues | Foreign currency/coffee hedges | | 1.3 |
| | (0.1 | ) | | Cost of sales including occupancy costs | | | (4.6 | ) | | 2.5 |
| | Total before tax | | | 0.6 |
| | (1.1 | ) | | Tax (expense)/benefit | | | $ | (4.0 | ) | | $ | 1.4 |
| | Net of tax |
Two Quarters Ended | | | | | | | | | | | | AOCI Components | | Amounts Reclassified from AOCI | | Affected Line Item in the Statements of Earnings | | Mar 29, 2015 | | Mar 30, 2014 | | Gains/(losses) on cash flow hedges | | | | | | | Interest rate hedges | | $ | 2.6 |
| | $ | 2.5 |
| | Interest expense | Cross-currency swaps | | 52.5 |
| | — |
| | Interest income and other, net | Foreign currency hedges | | 5.9 |
| | 2.3 |
| | Revenues | Foreign currency/coffee hedges | | 1.1 |
| | (9.9 | ) | | Cost of sales including occupancy costs | Gains/(losses) on net investment hedges(1) | | 7.2 |
| | — |
| | Gain resulting from acquisition of joint venture | Translation adjustment(2) | | | | | | | Starbucks Japan | | (7.2 | ) | | — |
| | Gain resulting from acquisition of joint venture | Other | | (7.1 | ) | | — |
| | Interest income and other, net | | | 55.0 |
| | (5.1 | ) | | Total before tax | | | (16.5 | ) | | (1.0 | ) | | Tax (expense)/benefit | | | $ | 38.5 |
| | $ | (6.1 | ) | | Net of tax |
| | (1) | Release of pretax cumulative net gains in AOCI related to our net investment derivative instruments used to hedge our preexisting 39.5% equity method investment in Starbucks Japan. |
| | (2) | Release of cumulative translation adjustments to earnings upon sale or liquidation of foreign business. |
As discussed in Note 1, Summary of Significant Accounting Policies, on April 9, 2015, we effected a two-for-one stock split of our $0.001 par value common stock for shareholders of record as of March 30, 2015. All share data presented in this note has been retroactively adjusted to reflect this stock split. In addition to 2.4 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 March 29, 2015. We repurchased 8.6 million shares of common stock at a total cost of $342.4 million, and 8.1 million shares at a total cost of $301.2 million for the two quarters ended March 29, 2015 and March 30, 2014, respectively. As of March 29, 2015, 23.1 million shares remained available for repurchase under the current authorization. During the second quarter of fiscal 2015, our Board of Directors declared a quarterly cash dividend to shareholders of $0.16 per share to be paid on May 22, 2015 to shareholders of record as of the close of business on May 7, 2015. |