Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Starbucks Corp., balance sheet: goodwill and intangible assets

US$ in thousands

	Oct 1, 2023	Oct 2, 2022	Oct 3, 2021	Sep 27, 2020	Sep 29, 2019	Sep 30, 2018
Acquired and reacquired rights	957,600)	990,000)	1,141,500)	1,116,100)	1,075,000)	1,081,700)
Acquired trade secrets and processes	27,600)	27,600)	27,600)	27,600)	27,600)	27,600)
Trade names, trademarks and patents	131,000)	124,600)	126,300)	124,800)	40,600)	33,000)
Licensing agreements	13,000)	19,300)	18,800)	16,600)	16,200)	14,300)
Other finite-lived intangible assets	20,100)	20,600)	24,000)	22,800)	22,000)	25,600)
Finite-lived intangible assets, gross carrying amount	1,149,300)	1,182,100)	1,338,200)	1,307,900)	1,181,400)	1,182,200)
Accumulated amortization	(1,108,200)	(1,123,700)	(1,084,700)	(850,800)	(603,000)	(371,000)
Finite-lived intangible assets, net carrying amount	41,100)	58,400)	253,500)	457,100)	578,400)	811,200)
Trade names, trademarks and patents	79,400)	97,500)	96,400)	95,000)	203,400)	215,900)
Other indefinite-lived intangible assets	—)	—)	—)	—)	—)	15,100)
Indefinite-lived intangible assets	79,400)	97,500)	96,400)	95,000)	203,400)	231,000)
Other intangible assets	120,500)	155,900)	349,900)	552,100)	781,800)	1,042,200)
Goodwill	3,218,300)	3,283,500)	3,677,300)	3,597,200)	3,490,800)	3,541,600)
Other intangible assets and goodwill	3,338,800)	3,439,400)	4,027,200)	4,149,300)	4,272,600)	4,583,800)

Based on: 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30).

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Item	Description	The company
Other intangible assets	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Starbucks Corp. other intangible assets decreased from 2021 to 2022 and from 2022 to 2023.
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Starbucks Corp. goodwill decreased from 2021 to 2022 and from 2022 to 2023.
Other intangible assets and goodwill	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Starbucks Corp. other intangible assets and goodwill decreased from 2021 to 2022 and from 2022 to 2023.

Starbucks Corp., adjustments to financial statements

US$ in thousands

	Oct 1, 2023	Oct 2, 2022	Oct 3, 2021	Sep 27, 2020	Sep 29, 2019	Sep 30, 2018
Adjustment to Total Assets
Total assets (as reported)	29,445,500)	27,978,400)	31,392,600)	29,374,500)	19,219,600)	24,156,400)
Less: Goodwill	3,218,300)	3,283,500)	3,677,300)	3,597,200)	3,490,800)	3,541,600)
Total assets (adjusted)	26,227,200)	24,694,900)	27,715,300)	25,777,300)	15,728,800)	20,614,800)
Adjustment to Shareholders’ Equity (deficit)
Shareholders’ equity (deficit) (as reported)	(7,994,800)	(8,706,600)	(5,321,200)	(7,805,100)	(6,232,200)	1,169,500)
Less: Goodwill	3,218,300)	3,283,500)	3,677,300)	3,597,200)	3,490,800)	3,541,600)
Shareholders’ equity (deficit) (adjusted)	(11,213,100)	(11,990,100)	(8,998,500)	(11,402,300)	(9,723,000)	(2,372,100)
Adjustment to Net Earnings Attributable To Starbucks
Net earnings attributable to Starbucks (as reported)	4,124,500)	3,281,600)	4,199,300)	928,300)	3,599,200)	4,518,300)
Add: Goodwill impairment	—)	—)	—)	—)	10,500)	37,600)
Net earnings attributable to Starbucks (adjusted)	4,124,500)	3,281,600)	4,199,300)	928,300)	3,609,700)	4,555,900)

Based on: 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30).

Starbucks Corp., Financial Data: Reported vs. Adjusted

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Starbucks Corp., adjusted financial ratios

	Oct 1, 2023	Oct 2, 2022	Oct 3, 2021	Sep 27, 2020	Sep 29, 2019	Sep 30, 2018
Net Profit Margin
Reported net profit margin	11.46%	10.18%	14.45%	3.95%	13.58%	18.28%
Adjusted net profit margin	11.46%	10.18%	14.45%	3.95%	13.62%	18.43%
Total Asset Turnover
Reported total asset turnover	1.22	1.15	0.93	0.80	1.38	1.02
Adjusted total asset turnover	1.37	1.31	1.05	0.91	1.69	1.20
Financial Leverage
Reported financial leverage	—	—	—	—	—	20.66
Adjusted financial leverage	—	—	—	—	—	—
Return on Equity (ROE)
Reported ROE	—	—	—	—	—	386.34%
Adjusted ROE	—	—	—	—	—	—
Return on Assets (ROA)
Reported ROA	14.01%	11.73%	13.38%	3.16%	18.73%	18.70%
Adjusted ROA	15.73%	13.29%	15.15%	3.60%	22.95%	22.10%

Based on: 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Starbucks Corp. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Starbucks Corp. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Starbucks Corp. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Starbucks Corp., Financial Ratios: Reported vs. Adjusted

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	Oct 1, 2023	Oct 2, 2022	Oct 3, 2021	Sep 27, 2020	Sep 29, 2019	Sep 30, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net earnings attributable to Starbucks	4,124,500)	3,281,600)	4,199,300)	928,300)	3,599,200)	4,518,300)
Net revenues	35,975,600)	32,250,300)	29,060,600)	23,518,000)	26,508,600)	24,719,500)
Profitability Ratio
Net profit margin¹	11.46%	10.18%	14.45%	3.95%	13.58%	18.28%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net earnings attributable to Starbucks	4,124,500)	3,281,600)	4,199,300)	928,300)	3,609,700)	4,555,900)
Net revenues	35,975,600)	32,250,300)	29,060,600)	23,518,000)	26,508,600)	24,719,500)
Profitability Ratio
Adjusted net profit margin²	11.46%	10.18%	14.45%	3.95%	13.62%	18.43%

Based on: 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30).

2023 Calculations

¹ Net profit margin = 100 × Net earnings attributable to Starbucks ÷ Net revenues
= 100 × 4,124,500 ÷ 35,975,600 = 11.46%

² Adjusted net profit margin = 100 × Adjusted net earnings attributable to Starbucks ÷ Net revenues
= 100 × 4,124,500 ÷ 35,975,600 = 11.46%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Starbucks Corp. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

	Oct 1, 2023	Oct 2, 2022	Oct 3, 2021	Sep 27, 2020	Sep 29, 2019	Sep 30, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net revenues	35,975,600)	32,250,300)	29,060,600)	23,518,000)	26,508,600)	24,719,500)
Total assets	29,445,500)	27,978,400)	31,392,600)	29,374,500)	19,219,600)	24,156,400)
Activity Ratio
Total asset turnover¹	1.22	1.15	0.93	0.80	1.38	1.02
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net revenues	35,975,600)	32,250,300)	29,060,600)	23,518,000)	26,508,600)	24,719,500)
Adjusted total assets	26,227,200)	24,694,900)	27,715,300)	25,777,300)	15,728,800)	20,614,800)
Activity Ratio
Adjusted total asset turnover²	1.37	1.31	1.05	0.91	1.69	1.20

Based on: 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30).

2023 Calculations

¹ Total asset turnover = Net revenues ÷ Total assets
= 35,975,600 ÷ 29,445,500 = 1.22

² Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 35,975,600 ÷ 26,227,200 = 1.37

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Starbucks Corp. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

	Oct 1, 2023	Oct 2, 2022	Oct 3, 2021	Sep 27, 2020	Sep 29, 2019	Sep 30, 2018
As Reported
Selected Financial Data (US$ in thousands)
Total assets	29,445,500)	27,978,400)	31,392,600)	29,374,500)	19,219,600)	24,156,400)
Shareholders’ equity (deficit)	(7,994,800)	(8,706,600)	(5,321,200)	(7,805,100)	(6,232,200)	1,169,500)
Solvency Ratio
Financial leverage¹	—	—	—	—	—	20.66
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets	26,227,200)	24,694,900)	27,715,300)	25,777,300)	15,728,800)	20,614,800)
Adjusted shareholders’ equity (deficit)	(11,213,100)	(11,990,100)	(8,998,500)	(11,402,300)	(9,723,000)	(2,372,100)
Solvency Ratio
Adjusted financial leverage²	—	—	—	—	—	—

Based on: 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30).

2023 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity (deficit)
= 29,445,500 ÷ -7,994,800 = —

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity (deficit)
= 26,227,200 ÷ -11,213,100 = —

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	Oct 1, 2023	Oct 2, 2022	Oct 3, 2021	Sep 27, 2020	Sep 29, 2019	Sep 30, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net earnings attributable to Starbucks	4,124,500)	3,281,600)	4,199,300)	928,300)	3,599,200)	4,518,300)
Shareholders’ equity (deficit)	(7,994,800)	(8,706,600)	(5,321,200)	(7,805,100)	(6,232,200)	1,169,500)
Profitability Ratio
ROE¹	—	—	—	—	—	386.34%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net earnings attributable to Starbucks	4,124,500)	3,281,600)	4,199,300)	928,300)	3,609,700)	4,555,900)
Adjusted shareholders’ equity (deficit)	(11,213,100)	(11,990,100)	(8,998,500)	(11,402,300)	(9,723,000)	(2,372,100)
Profitability Ratio
Adjusted ROE²	—	—	—	—	—	—

Based on: 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30).

2023 Calculations

¹ ROE = 100 × Net earnings attributable to Starbucks ÷ Shareholders’ equity (deficit)
= 100 × 4,124,500 ÷ -7,994,800 = —

² Adjusted ROE = 100 × Adjusted net earnings attributable to Starbucks ÷ Adjusted shareholders’ equity (deficit)
= 100 × 4,124,500 ÷ -11,213,100 = —

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	Oct 1, 2023	Oct 2, 2022	Oct 3, 2021	Sep 27, 2020	Sep 29, 2019	Sep 30, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net earnings attributable to Starbucks	4,124,500)	3,281,600)	4,199,300)	928,300)	3,599,200)	4,518,300)
Total assets	29,445,500)	27,978,400)	31,392,600)	29,374,500)	19,219,600)	24,156,400)
Profitability Ratio
ROA¹	14.01%	11.73%	13.38%	3.16%	18.73%	18.70%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net earnings attributable to Starbucks	4,124,500)	3,281,600)	4,199,300)	928,300)	3,609,700)	4,555,900)
Adjusted total assets	26,227,200)	24,694,900)	27,715,300)	25,777,300)	15,728,800)	20,614,800)
Profitability Ratio
Adjusted ROA²	15.73%	13.29%	15.15%	3.60%	22.95%	22.10%

Based on: 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30).

2023 Calculations

¹ ROA = 100 × Net earnings attributable to Starbucks ÷ Total assets
= 100 × 4,124,500 ÷ 29,445,500 = 14.01%

² Adjusted ROA = 100 × Adjusted net earnings attributable to Starbucks ÷ Adjusted total assets
= 100 × 4,124,500 ÷ 26,227,200 = 15.73%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Starbucks Corp. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Starbucks Corp. (NASDAQ:SBUX)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Starbucks Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Starbucks Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)