Starbucks 2010 Annual Report Download - page 65

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vary, but not exceed, 397 days from the date of issue. The program is backstopped by our new credit facility, and the
combined borrowing limit is $500 million for the commercial paper program and the credit facility. We may issue
commercial paper from time to time, and the proceeds of the commercial paper financing will be used for working
capital needs, capital expenditures and other corporate purposes, including acquisitions and share repurchases.
As of October 3, 2010, we had $15 million in letters of credit outstanding under the old credit facility. As of
September 27, 2009, letters of credit totaling $14 million were outstanding.
Long-term Debt
In August 2007, we issued $550 million of 6.25% Senior Notes (the “notes”) due in August 2017, in an underwritten
registered public offering. Interest is payable semi-annually on February 15 and August 15 of each year. The notes
require us to maintain compliance with certain covenants, which limit future liens and sale and leaseback
transactions on certain material properties.
Interest Expense
Interest expense, net of interest capitalized, was $32.7 million, $39.1 million and $53.4 million in fiscal 2010, 2009
and 2008, respectively. In fiscal 2010, 2009 and 2008, $4.9 million, $2.9 million and $7.2 million, respectively, of
interest was capitalized for new store and other asset construction projects, and included in net property, plant and
equipment on the consolidated balance sheets.
Note 11: Other Accrued Liabilities and Other Long-term Liabilities (in millions)
Oct 3, 2010 Sep 27, 2009
Accrueddividendpayable ......................................... $ 96.5 $ 0.0
Other ......................................................... 166.3 147.5
Total other accrued liabilities ....................................... $262.8 $147.5
Oct 3, 2010 Sep 27, 2009
Deferredrent ................................................... $239.7 $266.0
Unrecognized tax benefits ......................................... 65.1 55.1
Asset retirement obligations ........................................ 47.7 43.4
Other ......................................................... 22.6 25.1
Total other long term liabilities ..................................... $375.1 $389.6
Note 12: Leases
Rental expense under operating lease agreements (in millions):
Fiscal Year Ended Oct 3, 2010 Sep 27, 2009 Sep 28, 2008
Minimumrentals ..................................... $688.5 $690.0 $709.1
Contingentrentals .................................... 26.1 24.7 32.0
Total .............................................. $714.6 $714.7 $741.1
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