Starbucks 2010 Annual Report Download - page 23

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closure of underperforming stores, we would need to fund the costs of terminating store leases. If we are unable to
generate sufficient cash flow from operations in the future to satisfy these financial obligations, we may be required
to, among other things:
• seek additional financing in the debt or equity markets;
• refinance or restructure all or a portion of our indebtedness;
• sell selected assets;
• discontinue our common stock dividend; or
• reduce or delay planned capital or operating expenditures.
Such measures might not be sufficient to enable us to satisfy our financial obligations. In addition, any such
financing, refinancing or sale of assets might not be available on economically favorable terms.
Item 1B. Unresolved Staff Comments
None.
Item 2. Properties
The significant properties used by Starbucks in connection with its roasting and distribution operations are as
follows:
Location
Approximate Size
in Square Feet
Owned or
Leased Purpose
Auburn, WA ........................ 491,000 Leased Warehouse and distribution
Kent,WA .......................... 332,000 Owned Roasting and distribution
Kent,WA .......................... 215,000 Leased Warehouse
Renton,WA ........................ 125,000 Leased Warehouse
York County, PA ..................... 450,000 Owned Roasting and distribution
York County, PA ..................... 298,000 Owned Warehouse
CarsonValley,NV ................... 360,000 Owned Roasting and distribution
SandyRun,SC ...................... 117,000 Owned Roasting and distribution
Portland, OR ........................ 68,000 Leased Warehouse
Atlanta,GA......................... 32,000 Leased Warehouse and distribution
Basildon, United Kingdom ............. 142,000 Leased Warehouse and distribution
Amsterdam,Netherlands............... 97,000 Leased Roasting and distribution
We lease approximately 1.0 million square feet of office space in Seattle, Washington for corporate administrative
purposes. Also in Seattle, Washington, we own a 205,000 square foot office building (previously occupied by us, but
now leased to other parties) and an adjacent 285,000 square foot office building, which is currently being marketed
for lease.
As of October 3, 2010, Starbucks had more than 8,800 company-operated retail stores, almost all of which are
leased. We also lease space in various locations for regional, district and other administrative offices, training
facilities and storage.
Item 3. Legal Proceedings
See discussion of Legal Proceedings in Note 17 to the consolidated financial statements included in Item 8 of this
Report.
Item 4. (Removed and Reserved)
17