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Analysis of Inventory
Inventory Accounting Policy
Inventories are stated at the lower of cost (primarily moving average cost) or net realizable value. Starbucks records inventory reserves for obsolete and slow-moving inventory and for estimated shrinkage between physical inventory counts. Inventory reserves are based on inventory obsolescence trends, historical experience and application of the specific identification method. As of September 30, 2018 and October 1, 2017, inventory reserves were $41.5 million and $38.4 million, respectively.
Source: 10-K (filing date: 2018-11-16).
Starbucks Corp., Statement of Financial Position, Inventory
USD $ in thousands
|Sep 30, 2018||Oct 1, 2017||Oct 2, 2016||Sep 27, 2015||Sep 28, 2014||Sep 29, 2013|
|Other merchandise held for sale|
|Packaging and other supplies|
Based on: 10-K (filing date: 2018-11-16), 10-K (filing date: 2017-11-17), 10-K (filing date: 2016-11-18), 10-K (filing date: 2015-11-12), 10-K (filing date: 2014-11-14), 10-K (filing date: 2013-11-18).
|Inventories||Amount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer.||Starbucks Corp.’s inventories declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.|