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 2, 2022	Oct 3, 2021	Sep 27, 2020	Sep 29, 2019	Sep 30, 2018	Oct 1, 2017
Acquired and reacquired rights	990,000)	1,141,500)	1,116,100)	1,075,000)	1,081,700)	328,800)
Acquired trade secrets and processes	27,600)	27,600)	27,600)	27,600)	27,600)	27,600)
Trade names, trademarks and patents	124,600)	126,300)	124,800)	40,600)	33,000)	31,500)
Licensing agreements	19,300)	18,800)	16,600)	16,200)	14,300)	14,400)
Other finite-lived intangible assets	20,600)	24,000)	22,800)	22,000)	25,600)	6,700)
Finite-lived intangible assets, gross carrying amount	1,182,100)	1,338,200)	1,307,900)	1,181,400)	1,182,200)	409,000)
Accumulated amortization	(1,123,700)	(1,084,700)	(850,800)	(603,000)	(371,000)	(194,800)
Finite-lived intangible assets, net carrying amount	58,400)	253,500)	457,100)	578,400)	811,200)	214,200)
Trade names, trademarks and patents	97,500)	96,400)	95,000)	203,400)	215,900)	212,100)
Other indefinite-lived intangible assets	—)	—)	—)	—)	15,100)	15,100)
Indefinite-lived intangible assets	97,500)	96,400)	95,000)	203,400)	231,000)	227,200)
Other intangible assets	155,900)	349,900)	552,100)	781,800)	1,042,200)	441,400)
Goodwill	3,283,500)	3,677,300)	3,597,200)	3,490,800)	3,541,600)	1,539,200)
Other intangible assets and goodwill	3,439,400)	4,027,200)	4,149,300)	4,272,600)	4,583,800)	1,980,600)

Based on: 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), 10-K (reporting date: 2017-10-01).

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 2020 to 2021 and from 2021 to 2022.
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 increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
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 2020 to 2021 and from 2021 to 2022.

Starbucks Corp., adjustments to financial statements

US$ in thousands

	Oct 2, 2022	Oct 3, 2021	Sep 27, 2020	Sep 29, 2019	Sep 30, 2018	Oct 1, 2017
Adjustment to Total Assets
Total assets (as reported)	27,978,400)	31,392,600)	29,374,500)	19,219,600)	24,156,400)	14,365,600)
Less: Goodwill	3,283,500)	3,677,300)	3,597,200)	3,490,800)	3,541,600)	1,539,200)
Total assets (adjusted)	24,694,900)	27,715,300)	25,777,300)	15,728,800)	20,614,800)	12,826,400)
Adjustment to Shareholders’ Equity (deficit)
Shareholders’ equity (deficit) (as reported)	(8,706,600)	(5,321,200)	(7,805,100)	(6,232,200)	1,169,500)	5,450,100)
Less: Goodwill	3,283,500)	3,677,300)	3,597,200)	3,490,800)	3,541,600)	1,539,200)
Shareholders’ equity (deficit) (adjusted)	(11,990,100)	(8,998,500)	(11,402,300)	(9,723,000)	(2,372,100)	3,910,900)
Adjustment to Net Earnings Attributable To Starbucks
Net earnings attributable to Starbucks (as reported)	3,281,600)	4,199,300)	928,300)	3,599,200)	4,518,300)	2,884,700)
Add: Goodwill impairment	—)	—)	—)	10,500)	37,600)	87,200)
Net earnings attributable to Starbucks (adjusted)	3,281,600)	4,199,300)	928,300)	3,609,700)	4,555,900)	2,971,900)

Based on: 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), 10-K (reporting date: 2017-10-01).

Starbucks Corp., Financial Data: Reported vs. Adjusted

Starbucks Corp., adjusted financial ratios

	Oct 2, 2022	Oct 3, 2021	Sep 27, 2020	Sep 29, 2019	Sep 30, 2018	Oct 1, 2017
Net Profit Margin
Reported net profit margin	10.18%	14.45%	3.95%	13.58%	18.28%	12.89%
Adjusted net profit margin	10.18%	14.45%	3.95%	13.62%	18.43%	13.28%
Total Asset Turnover
Reported total asset turnover	1.15	0.93	0.80	1.38	1.02	1.56
Adjusted total asset turnover	1.31	1.05	0.91	1.69	1.20	1.75
Financial Leverage
Reported financial leverage	—	—	—	—	20.66	2.64
Adjusted financial leverage	—	—	—	—	—	3.28
Return on Equity (ROE)
Reported ROE	—	—	—	—	386.34%	52.93%
Adjusted ROE	—	—	—	—	—	75.99%
Return on Assets (ROA)
Reported ROA	11.73%	13.38%	3.16%	18.73%	18.70%	20.08%
Adjusted ROA	13.29%	15.15%	3.60%	22.95%	22.10%	23.17%

Based on: 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), 10-K (reporting date: 2017-10-01).

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 improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.
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 2020 to 2021 and from 2021 to 2022.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Starbucks Corp. adjusted ROA improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Starbucks Corp., Financial Ratios: Reported vs. Adjusted

	Oct 2, 2022	Oct 3, 2021	Sep 27, 2020	Sep 29, 2019	Sep 30, 2018	Oct 1, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net earnings attributable to Starbucks	3,281,600)	4,199,300)	928,300)	3,599,200)	4,518,300)	2,884,700)
Net revenues	32,250,300)	29,060,600)	23,518,000)	26,508,600)	24,719,500)	22,386,800)
Profitability Ratio
Net profit margin¹	10.18%	14.45%	3.95%	13.58%	18.28%	12.89%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net earnings attributable to Starbucks	3,281,600)	4,199,300)	928,300)	3,609,700)	4,555,900)	2,971,900)
Net revenues	32,250,300)	29,060,600)	23,518,000)	26,508,600)	24,719,500)	22,386,800)
Profitability Ratio
Adjusted net profit margin²	10.18%	14.45%	3.95%	13.62%	18.43%	13.28%

Based on: 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), 10-K (reporting date: 2017-10-01).

2022 Calculations

¹ Net profit margin = 100 × Net earnings attributable to Starbucks ÷ Net revenues
= 100 × 3,281,600 ÷ 32,250,300 = 10.18%

² Adjusted net profit margin = 100 × Adjusted net earnings attributable to Starbucks ÷ Net revenues
= 100 × 3,281,600 ÷ 32,250,300 = 10.18%

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 improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

	Oct 2, 2022	Oct 3, 2021	Sep 27, 2020	Sep 29, 2019	Sep 30, 2018	Oct 1, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net revenues	32,250,300)	29,060,600)	23,518,000)	26,508,600)	24,719,500)	22,386,800)
Total assets	27,978,400)	31,392,600)	29,374,500)	19,219,600)	24,156,400)	14,365,600)
Activity Ratio
Total asset turnover¹	1.15	0.93	0.80	1.38	1.02	1.56
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net revenues	32,250,300)	29,060,600)	23,518,000)	26,508,600)	24,719,500)	22,386,800)
Adjusted total assets	24,694,900)	27,715,300)	25,777,300)	15,728,800)	20,614,800)	12,826,400)
Activity Ratio
Adjusted total asset turnover²	1.31	1.05	0.91	1.69	1.20	1.75

Based on: 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), 10-K (reporting date: 2017-10-01).

2022 Calculations

¹ Total asset turnover = Net revenues ÷ Total assets
= 32,250,300 ÷ 27,978,400 = 1.15

² Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 32,250,300 ÷ 24,694,900 = 1.31

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 2020 to 2021 and from 2021 to 2022.

	Oct 2, 2022	Oct 3, 2021	Sep 27, 2020	Sep 29, 2019	Sep 30, 2018	Oct 1, 2017
As Reported
Selected Financial Data (US$ in thousands)
Total assets	27,978,400)	31,392,600)	29,374,500)	19,219,600)	24,156,400)	14,365,600)
Shareholders’ equity (deficit)	(8,706,600)	(5,321,200)	(7,805,100)	(6,232,200)	1,169,500)	5,450,100)
Solvency Ratio
Financial leverage¹	—	—	—	—	20.66	2.64
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets	24,694,900)	27,715,300)	25,777,300)	15,728,800)	20,614,800)	12,826,400)
Adjusted shareholders’ equity (deficit)	(11,990,100)	(8,998,500)	(11,402,300)	(9,723,000)	(2,372,100)	3,910,900)
Solvency Ratio
Adjusted financial leverage²	—	—	—	—	—	3.28

Based on: 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), 10-K (reporting date: 2017-10-01).

2022 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity (deficit)
= 27,978,400 ÷ -8,706,600 = —

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity (deficit)
= 24,694,900 ÷ -11,990,100 = —

	Oct 2, 2022	Oct 3, 2021	Sep 27, 2020	Sep 29, 2019	Sep 30, 2018	Oct 1, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net earnings attributable to Starbucks	3,281,600)	4,199,300)	928,300)	3,599,200)	4,518,300)	2,884,700)
Shareholders’ equity (deficit)	(8,706,600)	(5,321,200)	(7,805,100)	(6,232,200)	1,169,500)	5,450,100)
Profitability Ratio
ROE¹	—	—	—	—	386.34%	52.93%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net earnings attributable to Starbucks	3,281,600)	4,199,300)	928,300)	3,609,700)	4,555,900)	2,971,900)
Adjusted shareholders’ equity (deficit)	(11,990,100)	(8,998,500)	(11,402,300)	(9,723,000)	(2,372,100)	3,910,900)
Profitability Ratio
Adjusted ROE²	—	—	—	—	—	75.99%

Based on: 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), 10-K (reporting date: 2017-10-01).

2022 Calculations

¹ ROE = 100 × Net earnings attributable to Starbucks ÷ Shareholders’ equity (deficit)
= 100 × 3,281,600 ÷ -8,706,600 = —

² Adjusted ROE = 100 × Adjusted net earnings attributable to Starbucks ÷ Adjusted shareholders’ equity (deficit)
= 100 × 3,281,600 ÷ -11,990,100 = —

	Oct 2, 2022	Oct 3, 2021	Sep 27, 2020	Sep 29, 2019	Sep 30, 2018	Oct 1, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net earnings attributable to Starbucks	3,281,600)	4,199,300)	928,300)	3,599,200)	4,518,300)	2,884,700)
Total assets	27,978,400)	31,392,600)	29,374,500)	19,219,600)	24,156,400)	14,365,600)
Profitability Ratio
ROA¹	11.73%	13.38%	3.16%	18.73%	18.70%	20.08%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net earnings attributable to Starbucks	3,281,600)	4,199,300)	928,300)	3,609,700)	4,555,900)	2,971,900)
Adjusted total assets	24,694,900)	27,715,300)	25,777,300)	15,728,800)	20,614,800)	12,826,400)
Profitability Ratio
Adjusted ROA²	13.29%	15.15%	3.60%	22.95%	22.10%	23.17%

Based on: 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), 10-K (reporting date: 2017-10-01).

2022 Calculations

¹ ROA = 100 × Net earnings attributable to Starbucks ÷ Total assets
= 100 × 3,281,600 ÷ 27,978,400 = 11.73%

² Adjusted ROA = 100 × Adjusted net earnings attributable to Starbucks ÷ Adjusted total assets
= 100 × 3,281,600 ÷ 24,694,900 = 13.29%

Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Starbucks Corp. adjusted ROA improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

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)