Starbucks 2010 Annual Report Download - page 67

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Comprehensive income, net of related tax effects (in millions):
Fiscal Year Ended Oct 3, 2010 Sep 27, 2009 Sep 28, 2008
Net earnings attributable to Starbucks ..................... $945.6 $390.8 $315.5
Unrealized holding gains/(losses) on available-for-sale
securities, net of tax (provision)/benefit of $0.1, $(1.9) and
$2.4, respectively ................................. (0.2) 3.3 (4.0)
Unrealized holding gains/(losses) on cash flow hedging
instruments, net of tax (provision)/benefit of $6.6, $(2.4)
and $(0.4), respectively ............................ (11.3) 4.0 0.7
Unrealized holding losses on net investment hedging
instruments, net of tax benefit of $4.0, $4.0 and $0.6,
respectively ..................................... (6.8) (6.8) (0.9)
Reclassification adjustment for net losses realized in net
earnings for cash flow hedges, net of tax benefit of $0.8,
$0.8 and $3.0, respectively ......................... 1.3 1.3 5.0
Net unrealized gain/(loss) .............................. (17.0) 1.8 0.8
Translation adjustment, net of tax (provision)/benefit of $(3.2),
$6.0 and $0.3, respectively ........................... 8.8 15.2 (7.0)
Totalcomprehensiveincome............................ $937.4 $407.8 $309.3
The favorable translation adjustment change during fiscal 2010 was primarily due to the weakening of the US dollar
against several currencies including the Japanese yen and Canadian dollar, partially offset by the strengthening of
the US dollar against the euro. The favorable translation adjustment change during fiscal 2009 was primarily due to
the weakening of the US dollar against the Japanese yen, Australian dollar and the euro. The unfavorable translation
adjustment change during fiscal 2008 was primarily due to the strengthening of the US dollar against several
currencies including the Australian dollar, Korean won and Canadian dollar.
Components of accumulated other comprehensive income, net of tax (in millions):
Fiscal Year Ended Oct 3, 2010 Sep 27, 2009
Net unrealized gains/(losses) on available-for-sale securities ............... $ (0.9) $ (0.8)
Net unrealized gains/(losses) on hedging instruments .................... (40.5) (23.7)
Translationadjustment ............................................ 98.6 89.9
Accumulatedothercomprehensiveincome ............................ $57.2 $ 65.4
As of October 3, 2010, the translation adjustment was net of tax provisions of $4.2 million. As of September 27,
2009, the translation adjustment was net of tax provisions of $1.0 million.
Note 14: Employee Stock and Benefit Plans
We maintain several equity incentive plans under which we may grant non-qualified stock options, incentive stock
options, restricted stock, RSUs, or stock appreciation rights to employees, non-employee directors and consultants.
We issue new shares of common stock upon exercise of stock options and the vesting of RSUs. We also have
employee stock purchase plans (“ESPP”).
As of October 3, 2010, there were 27.9 million shares of common stock available for issuance pursuant to future
equity-based compensation awards and 9.0 million shares available for issuance under our ESPP.
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