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1、Table of ContentsUNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington,DC 20549FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the Quarterly Period Ended March 31,2024OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANG

2、E ACT OF 1934For the transition period from to .Commission File Number:000-20322Starbucks Corporation(Exact Name of Registrant as Specified in its Charter)Washington91-1325671(State or Other Jurisdiction ofIncorporation or Organization)(IRS EmployerIdentification No.)2401 Utah Avenue South,Seattle,W

3、ashington 98134(Address of principal executive offices,zip code)(206)447-1575(Registrants Telephone Number,including Area Code)Securities registered pursuant to Section 12(b)of the Act:TitleTrading SymbolName of each exchange on which registeredCommon Stock,par value$0.001 per shareSBUXNasdaq Global

4、 Select MarketIndicate by check mark whether the registrant:(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 duringthe preceding 12 months(or for such shorter period that the registrant was required to file such reports),and(2)has been subjec

5、t to such filing requirements forthe past 90 days.Yes x No Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 ofRegulation S-T(232.405 of this chapter)during the preceding 12 months(or for such shorter

6、period that the registrant was required to submit suchfiles).Yes x No Indicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,smaller reporting company,or anemerging growth company.See the definitions of“large accelerated filer,”“accele

7、rated filer,”“smaller reporting company”and“emerging growth company”in Rule 12b-2 of the Exchange Act.Large accelerated filerxAccelerated filerNon-accelerated filerSmaller reporting companyEmerging growth companyIf an emerging growth company,indicate by check mark if the registrant has elected not t

8、o use the extended transition period for complying with any new orrevised financial accounting standards provided pursuant to Section 13(a)of the Exchange Act.Indicate by check mark whether the registrant is a shell company(as defined in Rule 12b-2 of the Exchange Act):Yes No x Indicate the number o

9、f shares outstanding of each of the issuers classes of common stock,as of the latest practicable date.Shares Outstanding as of April 24,20241,132.7 millionTable of ContentsSTARBUCKS CORPORATIONFORM 10-QFor the Quarterly Period Ended March 31,2024Table of Contents PART I.FINANCIAL INFORMATIONItem 1Fi

10、nancial Statements(Unaudited)3Consolidated Statements of Earnings3Consolidated Statements of Comprehensive Income4Consolidated Balance Sheets5Consolidated Statements of Cash Flows6Consolidated Statements of Equity7Index for Notes to Consolidated Financial Statements9Notes to Consolidated Financial S

11、tatements10Item 2Managements Discussion and Analysis of Financial Condition and Results of Operations28Item 3Quantitative and Qualitative Disclosures About Market Risk40Item 4Controls and Procedures41PART II.OTHER INFORMATIONItem 1Legal Proceedings42Item 1ARisk Factors42Item 2Unregistered Sales of E

12、quity Securities and Use of Proceeds42Item 3Defaults Upon Senior Securities42Item 4Mine Safety Disclosures42Item 5Other Information42Item 6Exhibits43Signatures44 Table of ContentsPART I FINANCIAL INFORMATIONItem 1.Financial StatementsSTARBUCKS CORPORATIONCONSOLIDATED STATEMENTS OF EARNINGS(in millio

13、ns,except per share data,unaudited)Quarter EndedTwo Quarters EndedMar 31,2024Apr 2,2023Mar 31,2024Apr 2,2023Net revenues:Company-operated stores$7,052.6$7,142.3$14,807.9$14,225.7 Licensed stores1,054.5 1,069.5 2,246.6 2,189.0 Other455.9 508.0 933.8 1,019.1 Total net revenues8,563.0 8,719.8 17,988.3

14、17,433.8 Product and distribution costs2,648.7 2,801.7 5,629.2 5,611.9 Store operating expenses3,724.1 3,636.0 7,575.6 7,301.3 Other operating expenses132.8 126.2 283.2 255.4 Depreciation and amortization expenses371.9 341.9 737.2 669.0 General and administrative expenses654.6 620.4 1,302.6 1,201.3

15、Restructuring and impairments 8.8 14.7 Total operating expenses7,532.1 7,535.0 15,527.8 15,053.6 Income from equity investees68.0 51.4 123.8 109.2 Gain from sale of assets 91.3 91.3 Operating income1,098.9 1,327.5 2,584.3 2,580.7 Interest income and other,net34.1 18.4 67.9 30.0 Interest expense(140.

16、6)(136.3)(280.7)(266.0)Earnings before income taxes992.4 1,209.6 2,371.5 2,344.7 Income tax expense219.9 301.3 574.6 581.1 Net earnings including noncontrolling interests772.5 908.3 1,796.9 1,763.6 Net earnings attributable to noncontrolling interests0.1 0.0 0.1 0.0 Net earnings attributable to Star

17、bucks$772.4$908.3$1,796.8$1,763.6 Earnings per share-basic$0.68$0.79$1.58$1.54 Earnings per share-diluted$0.68$0.79$1.58$1.53 Weighted average shares outstanding:Basic1,132.4 1,148.5 1,134.5 1,148.4 Diluted1,135.4 1,152.7 1,138.0 1,152.8 See Notes to Consolidated Financial Statements.3Table of Conte

18、ntsSTARBUCKS CORPORATIONCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(in millions,unaudited)Quarter EndedTwo Quarters EndedMar 31,2024Apr 2,2023Mar 31,2024Apr 2,2023Net earnings including noncontrolling interests$772.5$908.3$1,796.9$1,763.6 Other comprehensive income/(loss),net of tax:Unrealized h

19、olding gains/(losses)on available-for-sale debt securities(0.4)3.6 5.2 5.6 Tax(expense)/benefit0.1(0.8)(1.3)(1.3)Unrealized gains/(losses)on cash flow hedging instruments36.4(1.2)71.8(181.9)Tax(expense)/benefit(9.3)0.1(11.1)29.6 Unrealized gains/(losses)on net investment hedging instruments92.5(2.7)

20、67.3(67.3)Tax(expense)/benefit(23.3)0.7(17.0)17.0 Translation adjustment and other(151.2)74.7 31.9 283.6 Tax(expense)/benefit1.1 (3.6)Reclassification adjustment for net(gains)/losses realized in netearnings for available-for-sale debt securities,hedging instruments,and translation adjustment(13.6)(

21、66.6)11.3(165.0)Tax expense/(benefit)4.0 9.5 2.2 21.3 Other comprehensive income/(loss)(63.7)17.3 156.7(58.4)Comprehensive income including noncontrolling interests708.8 925.6 1,953.6 1,705.2 Comprehensive income attributable to noncontrolling interests 0.2 Comprehensive income attributable to Starb

22、ucks$708.8$925.6$1,953.4$1,705.2 See Notes to Consolidated Financial Statements.4Table of ContentsSTARBUCKS CORPORATIONCONSOLIDATED BALANCE SHEETS(in millions,except per share data,unaudited)Mar 31,2024Oct 1,2023ASSETSCurrent assets:Cash and cash equivalents$2,764.1$3,551.5 Short-term investments362

23、.5 401.5 Accounts receivable,net1,110.3 1,184.1 Inventories1,744.0 1,806.4 Prepaid expenses and other current assets484.1 359.9 Total current assets6,465.0 7,303.4 Long-term investments280.4 247.4 Equity investments440.2 439.9 Property,plant and equipment,net7,817.4 7,387.1 Operating lease,right-of-

24、use asset8,686.5 8,412.6 Deferred income taxes,net1,746.5 1,769.8 Other long-term assets587.2 546.5 Other intangible assets110.7 120.5 Goodwill3,229.3 3,218.3 TOTAL ASSETS$29,363.2$29,445.5 LIABILITIES AND SHAREHOLDERS EQUITY/(DEFICIT)Current liabilities:Accounts payable$1,487.4$1,544.3 Accrued liab

25、ilities2,016.0 2,145.1 Accrued payroll and benefits704.8 828.3 Current portion of operating lease liability1,406.6 1,275.3 Stored value card liability and current portion of deferred revenue1,872.0 1,700.2 Short-term debt42.1 33.5 Current portion of long-term debt 1,818.6 Total current liabilities7,

26、528.9 9,345.3 Long-term debt15,547.5 13,547.6 Operating lease liability8,180.3 7,924.8 Deferred revenue6,058.4 6,101.8 Other long-term liabilities490.3 513.8 Total liabilities37,805.4 37,433.3 Shareholders deficit:Common stock($0.001 par value)authorized,2,400.0 shares;issued and outstanding,1,132.7

27、 and 1,142.6shares,respectively1.1 1.1 Additional paid-in capital141.7 38.1 Retained deficit(7,970.7)(7,255.8)Accumulated other comprehensive income/(loss)(621.5)(778.2)Total shareholders deficit(8,449.4)(7,994.8)Noncontrolling interests7.2 7.0 Total deficit(8,442.2)(7,987.8)TOTAL LIABILITIES AND SH

28、AREHOLDERS EQUITY/(DEFICIT)$29,363.2$29,445.5 See Notes to Consolidated Financial Statements.5Table of ContentsSTARBUCKS CORPORATIONCONSOLIDATED STATEMENTS OF CASH FLOWS(in millions,unaudited)Two Quarters EndedMar 31,2024Apr 2,2023OPERATING ACTIVITIES:Net earnings including noncontrolling interests$

29、1,796.9$1,763.6 Adjustments to reconcile net earnings to net cash provided by operating activities:Depreciation and amortization783.6 709.3 Deferred income taxes,net4.0 2.6 Income earned from equity method investees(132.3)(109.9)Distributions received from equity method investees154.5 88.0 Gain on s

30、ale of assets(91.3)Stock-based compensation173.0 159.3 Non-cash lease costs689.5 584.7 Loss on retirement and impairment of assets42.5 75.6 Other16.3 22.6 Cash provided by/(used in)changes in operating assets and liabilities:Accounts receivable86.4 26.2 Inventories64.5 194.6 Income taxes payable(84.

31、9)15.8 Accounts payable(51.6)(51.2)Deferred revenue128.9 54.0 Operating lease liability(635.1)(621.8)Other operating assets and liabilities(146.3)(461.3)Net cash provided by operating activities2,889.9 2,360.8 INVESTING ACTIVITIES:Purchases of investments(472.0)(247.7)Sales of investments0.5 1.9 Mat

32、urities and calls of investments498.7 270.0 Additions to property,plant and equipment(1,255.0)(1,002.0)Proceeds from sale of assets 110.0 Other(36.2)(39.2)Net cash used in investing activities(1,264.0)(907.0)FINANCING ACTIVITIES:Net(payments)/proceeds from issuance of commercial paper(175.0)Net proc

33、eeds from issuance of short-term debt93.2 52.8 Repayments of short-term debt(80.5)Net proceeds from issuance of long-term debt1,995.3 1,497.8 Repayments of long-term debt(1,825.1)(1,000.0)Proceeds from issuance of common stock58.4 129.8 Cash dividends paid(1,293.5)(1,217.4)Repurchase of common stock

34、(1,266.7)(479.3)Minimum tax withholdings on share-based awards(94.1)(81.4)Other(10.6)(10.7)Net cash used in financing activities(2,423.6)(1,283.4)Effect of exchange rate changes on cash and cash equivalents10.4 83.0 Net increase/(decrease)in cash and cash equivalents(787.3)253.4 CASH AND CASH EQUIVA

35、LENTS:Beginning of period3,551.5 2,818.4 End of period$2,764.1$3,071.8 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:Cash paid during the period for:Interest,net of capitalized interest$275.6$250.4 Income taxes$850.9$636.8 See Notes to Consolidated Financial Statements.6Table of ContentsSTARBUCKS

36、 CORPORATIONCONSOLIDATED STATEMENTS OF EQUITYFor the Quarter Ended March 31,2024 and April 2,2023(in millions,except per share data,unaudited)Common StockAdditionalPaid-inCapitalRetainedEarnings/(Deficit)AccumulatedOtherComprehensiveIncome/(Loss)ShareholdersEquity/(Deficit)NoncontrollingInterestsTot

37、al SharesAmountBalance,December 31,20231,132.2$1.1$38.2$(8,097.5)$(557.8)$(8,616.0)$7.1$(8,608.9)Net earnings 772.4 772.4 0.1 772.5 Other comprehensive loss (63.6)(63.6)(0.1)(63.7)Stock-based compensation expense 79.1 79.1 79.1 Exercise of stock options/vesting ofRSUs0.3 10.9 10.9 10.9 Sale of commo

38、n stock0.2 13.0 13.0 13.0 Repurchase of common stock 0.5 0.1 0.6 0.6 Cash dividends declared,$0.57 pershare (645.7)(645.7)(645.7)Other (0.1)(0.1)0.1 Balance,March 31,20241,132.7$1.1$141.7$(7,970.7)$(621.5)$(8,449.4)$7.2$(8,442.2)Balance,January 1,20231,148.5$1.1$67.2$(8,203.2)$(538.9)$(8,673.8)$7.9$

39、(8,665.9)Net earnings 908.3 908.3 908.3 Other comprehensive income 17.3 17.3 17.3 Stock-based compensation expense 75.0 75.0 75.0 Exercise of stock options/vesting ofRSUs1.3 68.2 68.2 68.2 Sale of common stock0.2 13.3 13.3 13.3 Repurchase of common stock(3.0)(182.5)(121.5)(304.0)(304.0)Cash dividend

40、s declared,$0.53 pershare (608.2)(608.2)(608.2)Purchase of noncontrolling interests(3.0)(3.0)(0.4)(3.4)Balance,April 2,20231,147.0$1.1$38.2$(8,024.6)$(521.6)$(8,506.9)$7.5$(8,499.4)Includes excise tax on share repurchases.See Notes to Consolidated Financial Statements.(1)(1)7Table of ContentsSTARBUC

41、KS CORPORATIONCONSOLIDATED STATEMENTS OF EQUITYFor the Two Quarters Ended March 31,2024 and April 2,2023(in millions,except per share data,unaudited)Common StockAdditionalPaid-inCapitalRetainedEarnings/(Deficit)AccumulatedOtherComprehensiveIncome/(Loss)ShareholdersEquity/(Deficit)NoncontrollingInter

42、estsTotal SharesAmountBalance,October 1,20231,142.6$1.1$38.1$(7,255.8)$(778.2)$(7,994.8)$7.0$(7,987.8)Net earnings 1,796.8 1,796.8 0.1 1,796.9 Other comprehensive income 156.6 156.6 0.1 156.7 Stock-based compensation expense 175.2 175.2 175.2 Exercise of stock options/vesting ofRSUs2.6(64.9)(64.9)(6

43、4.9)Sale of common stock0.3 29.2 29.2 29.2 Repurchase of common stock(12.8)(35.9)(1,223.9)(1,259.8)(1,259.8)Cash dividends declared,$1.14 pershare (1,287.8)(1,287.8)(1,287.8)Other 0.1 0.1 0.1 Balance,March 31,20241,132.7$1.1$141.7$(7,970.7)$(621.5)$(8,449.4)$7.2$(8,442.2)Balance,October 2,20221,147.

44、9$1.1$205.3$(8,449.8)$(463.2)$(8,706.6)$7.9$(8,698.7)Net earnings 1,763.6 1,763.6 1,763.6 Other comprehensive loss (58.4)(58.4)(58.4)Stock-based compensation expense 161.4 161.4 161.4 Exercise of stock options/vesting ofRSUs3.7 23.5 23.5 23.5 Sale of common stock0.3 24.9 24.9 24.9 Repurchase of comm

45、on stock(4.9)(373.9)(121.5)(495.4)(495.4)Cash dividends declared,$1.06 pershare (1,216.9)(1,216.9)(1,216.9)Purchase of noncontrolling interests(3.0)(3.0)(0.4)(3.4)Balance,April 2,20231,147.0$1.1$38.2$(8,024.6)$(521.6)$(8,506.9)$7.5$(8,499.4)Includes excise tax on share repurchases.See Notes to Conso

46、lidated Financial Statements.(1)(1)8Table of ContentsSTARBUCKS CORPORATIONINDEX FOR NOTES TO CONSOLIDATED FINANCIAL STATEMENTSNote 1Summary of Significant Accounting Policies and Estimates10Note 2Acquisitions,Divestitures,and Strategic Alliance10Note 3Derivative Financial Instruments11Note 4Fair Val

47、ue Measurements16Note 5Inventories18Note 6Supplemental Balance Sheet and Statement of Earnings Information18Note 7Other Intangible Assets and Goodwill19Note 8Debt20Note 9Leases22Note 10Deferred Revenue23Note 11Equity24Note 12Employee Stock Plans25Note 13Earnings per Share26Note 14Commitments and Con

48、tingencies26Note 15Segment Reporting269Table of ContentsSTARBUCKS CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS(unaudited)Note 1:Summary of Significant Accounting Policies and EstimatesFinancial Statement PreparationThe unaudited consolidated financial statements as of March 31,2024,and for

49、the quarters and two quarters ended March 31,2024 and April 2,2023,havebeen prepared by Starbucks Corporation under the rules and regulations of the Securities and Exchange Commission(“SEC”).In the opinion of management,the financial information for the quarters and two quarters ended March 31,2024

50、and April 2,2023 reflects all adjustments and accruals,which are of a normalrecurring nature,necessary for a fair presentation of the financial position,results of operations,and cash flows for the interim periods.In this Quarterly Reporton Form 10-Q(“10-Q”),Starbucks Corporation is referred to as“S

51、tarbucks,”the“Company,”“we,”“us,”or“our.”Segment information is prepared on the same basis that our management reviews financial information for operational decision-making purposes.Certain prior period information on the consolidated statements of cash flows have been reclassified to conform to the

52、 current presentation.The financial information as of October 1,2023 is derived from our audited consolidated financial statements and notes for the fiscal year ended October 1,2023(“fiscal 2023”)included in Item 8 in the fiscal 2023 Annual Report on Form 10-K(“10-K”).The information included in thi

53、s 10-Q should be read inconjunction with the footnotes and managements discussion and analysis of the consolidated financial statements in the 10-K.The results of operations for the quarter and two quarters ended March 31,2024 are not necessarily indicative of the results of operations that may be a

54、chievedfor the entire fiscal year ending September 29,2024(“fiscal 2024”).Recent Accounting Pronouncements Not Yet AdoptedIn November 2023,the Financial Accounting Standards Board(“FASB”)issued guidance expanding segment disclosure requirements.The amendmentsrequire enhanced disclosure for certain s

55、egment items and require disclosure on how management uses reported measures to assess segment performance.Theamendments do not change how segments are determined,aggregated,or how thresholds are applied to determine reportable segments.We expect to adopt theguidance for the fiscal year ending Septe

56、mber 28,2025.We are currently evaluating the expanded disclosure requirements and do not expect the adoption ofthis guidance to have a material impact on our consolidated financial statements.In December 2023,the FASB issued guidance expanding disclosure requirements related to income taxes.The amen

57、dments require enhanced jurisdictionaldisclosures for the income tax rate reconciliation and related to cash income taxes paid.Additionally,specific disclosures related to unrecognized tax benefitsand indefinite reinvestment assertions were removed.The amendments are effective for our fiscal year en

58、ding September 27,2026.While we are stillevaluating the specific impacts and timing of adoption,we anticipate this guidance will have a significant impact on our annual income tax disclosures.In March 2024,the SEC issued its final climate disclosure rules,which require the disclosure of climate-rela

59、ted information in annual reports and registrationstatements.The rules require disclosure in the audited financial statements of certain effects of severe weather events and other natural conditions above certainfinancial thresholds,as well as amounts related to carbon offsets and renewable energy c

60、redits or certificates,if material.Disclosure requirements will beginphasing in for fiscal years beginning on or after January 1,2025.On April 4,2024,the SEC determined to voluntarily stay the final rules pending certain legalchallenges.We are currently evaluating the impact of the new rules and exp

61、ect to include updated climate-related disclosures in our Annual Report on Form 10-K for our fiscal year ending September 27,2026,depending on the outcome of the legal challenges.Note 2:Acquisitions,Divestitures,and Strategic AllianceOn January 13,2023,we sold the assets,primarily consisting of inte

62、llectual properties associated with the Seattles Best Coffee brand,to Nestl for$110.0million.The transaction resulted in a pre-tax gain of$91.3 million,which was included in gain from sale of assets on our consolidated statements of earningsfor the quarter and two quarters ended April 2,2023.Results

63、 from Seattles Best Coffee operations prior to the sale are reported in our Channel Developmentoperating segment.10Table of ContentsNote 3:Derivative Financial InstrumentsInterest RatesFrom time to time,we enter into designated cash flow hedges to manage the variability in cash flows due to changes

64、in benchmark interest rates.We enter intointerest rate swap agreements,including forward-starting interest rate swaps and treasury locks,settled in cash based upon the difference between an agreed-upon benchmark rate and the prevailing benchmark rate at settlement.These agreements are generally sett

65、led around the time of the pricing of the related debt.Each derivative agreements gain or loss is recorded in accumulated other comprehensive income(“AOCI”)and is subsequently reclassified to interest expenseover the life of the related debt.To hedge the exposure to changes in the fair value of our

66、fixed-rate debt,we enter into interest rate swap agreements,which are designated as fair value hedges.The changes in fair values of these derivative instruments and the offsetting changes in fair values of the underlying hedged debt due to changes in the relevantbenchmark interest rates are recorded

67、 in interest expense.Refer to Note 8,Debt,for additional information on our long-term debt.Foreign CurrencyTo reduce cash flow volatility from foreign currency fluctuations,we enter into forward and swap contracts to hedge portions of cash flows of anticipatedroyalty payments,inventory purchases,and

68、 intercompany borrowing and lending activities.The resulting gains and losses from these derivatives are recordedin AOCI and subsequently reclassified to revenue,product and distribution costs,or interest income and other,net,respectively,when the hedged exposuresaffect net earnings.From time to tim

69、e,we may enter into financial instruments,including,but not limited to,forward and swap contracts or foreign currency-denominated debt,tohedge the currency exposure of our net investments in certain international operations.The resulting gains and losses from these derivatives are recorded inAOCI an

70、d are subsequently reclassified to net earnings when the hedged net investment is either sold or substantially liquidated.Gains and losses from thesederivatives representing hedged components excluded from the assessment of effectiveness are amortized over the life of the hedging instrument using as

71、ystematic and rational method and recognized in interest expense.Foreign currency forward and swap contracts not designated as hedging instruments are used to mitigate the foreign exchange risk of certain other balancesheet items.Gains and losses from these derivatives are largely offset by the fina

72、ncial impact of translating foreign currency-denominated payables andreceivables,and these gains and losses are recorded in interest income and other,net.CommoditiesDepending on market conditions,we may enter into coffee forward contracts,futures contracts,and collars to hedge anticipated cash flows

73、 under our price-to-be-fixed green coffee contracts,which are described further in Note 5,Inventories,or our longer-dated forecasted coffee demand where underlying fixed priceand price-to-be-fixed contracts are not yet available.The resulting gains and losses are recorded in AOCI and are subsequentl

74、y reclassified to product anddistribution costs when the hedged exposure affects net earnings.Depending on market conditions,we may also enter into dairy forward contracts and futures contracts to hedge a portion of anticipated cash flows under ourdairy purchase contracts and our forecasted dairy de

75、mand.The resulting gains or losses are recorded in AOCI and are subsequently reclassified to product anddistribution costs when the hedged exposure affects net earnings.Cash flow hedges related to anticipated transactions are designated and documented at the inception of each hedge.Cash flows from h

76、edging transactions areclassified in the same categories as the cash flows from the respective hedged items.For de-designated cash flow hedges in which the underlying transactionsare no longer probable of occurring or where price variability in the underlying cash flow ceases to exist,the related ac

77、cumulated derivative gains or losses arerecognized in interest income and other,net on our consolidated statements of earnings.These derivatives may be accounted for prospectively as non-designated derivatives until maturity,re-designated to new hedging relationships,or terminated early.We continue

78、to believe transactions related to our otherdesignated cash flow hedges are probable to occur.To mitigate the price uncertainty of a portion of our future purchases,including diesel fuel and other commodities,we enter into swap contracts,futures,andcollars that are not designated as hedging instrume

79、nts.The resulting gains and losses are recorded in interest income and other,net to help offset pricefluctuations on our beverage,food,packaging,and transportation costs,which are included in product and distribution costs on our consolidated statements ofearnings.11Table of ContentsGains and losses

80、 on derivative contracts and foreign currency-denominated debt designated as hedging instruments included in AOCI and expected to bereclassified into earnings within 12 months,net of tax(in millions):Net Gains/(Losses)Included in AOCINet Gains/(Losses)Expectedto be Reclassified from AOCIinto Earning

81、s within 12MonthsOutstanding Contract/DebtRemaining Maturity(Months)Mar 31,2024Oct 1,2023Cash Flow Hedges:Coffee$16.2$(78.1)$16.2 4Cross-currency swaps0.2(0.6)8Dairy(1.3)(1.8)(1.3)8Foreign currency-other30.6 39.6 21.4 33Interest rates(5.1)(6.6)(3.0)0Net Investment Hedges:Cross-currency swaps127.9 87

82、.1 120Foreign currency16.0 16.0 0Foreign currency debt135.3 140.2 012Table of ContentsPre-tax gains and losses on derivative contracts and foreign currency-denominated long-term debt designated as hedging instruments recognized in othercomprehensive income(“OCI”)and reclassifications from AOCI to ea

83、rnings(in millions):Quarter EndedGains/(Losses)Recognized inOCI Before ReclassificationsGains/(Losses)Reclassified fromAOCI to EarningsLocation of gain/(loss)Mar 31,2024Apr 2,2023Mar 31,2024Apr 2,2023Cash Flow Hedges:Coffee$(1.2)$(0.5)$(6.2)$59.9 Product and distribution costsCross-currency swaps4.0

84、(2.5)0.4(3.0)Interest expense3.3(0.1)Interest income and other,netDairy(1.3)(2.3)(2.3)(3.3)Product and distribution costsForeign currency-other34.9 3.8 7.4 4.0 Licensed stores revenue2.2 2.2 Product and distribution costsInterest rates 0.3(1.0)0.2 Interest expenseNet Investment Hedges:Cross-currency

85、 swaps 67.0(1.1)10.2 7.0 Interest expenseForeign currency debt25.5(1.6)Two Quarters EndedGains/(Losses)Recognized inOCI Before ReclassificationsGains/(Losses)Reclassified fromAOCI to EarningsLocation of gain/(loss)Mar 31,2024Apr 2,2023Mar 31,2024Apr 2,2023Cash Flow Hedges:Coffee$63.1$(119.9)$(46.6)$

86、156.6 Product and distribution costsCross-currency swaps2.4(14.2)1.0(5.7)Interest expense0.6(9.2)Interest income and other,netDairy(3.2)(5.9)(3.9)(4.8)Product and distribution costsForeign currency-other9.5(42.2)16.2 11.9 Licensed stores revenue5.0 4.4 Product and distribution costs 0.2 Interest inc

87、ome and other,netInterest rates 0.3(2.0)(0.3)Interest expenseNet Investment Hedges:Cross-currency swaps73.6(15.1)19.1 12.3 Interest expenseForeign currency debt(6.3)(52.2)Gains and losses recognized in earnings relate to components excluded from the assessment of effectiveness.(1)(1)(1)13Table of Co

88、ntentsPre-tax gains and losses on non-designated derivatives and designated fair value hedging instruments and the related fair value hedged item recognized inearnings(in millions):Gains/(Losses)Recognized in EarningsLocation of gain/(loss)recognized in earningsQuarter EndedTwo Quarters Ended Mar 31

89、,2024Apr 2,2023Mar 31,2024Apr 2,2023Non-Designated Derivatives:Foreign currency-otherInterest income and other,net$3.6$1.6$1.2$(10.0)CoffeeInterest income and other,net (5.5)Diesel fuel and other commoditiesInterest income and other,net0.3(1.7)(0.4)(1.9)Fair Value Hedges:Interest rate swapsInterest

90、expense(8.7)4.7 2.4 3.1 Long-term debt(hedged item)Interest expense5.7(12.1)(8.6)(15.4)Notional amounts of outstanding derivative contracts(in millions):Mar 31,2024Oct 1,2023Coffee$68$266 Cross-currency swaps1,746 1,076 Dairy52 71 Diesel fuel and other commodities14 7 Foreign currency-other1,191 1,1

91、64 Interest rate swaps350 1,100 14Table of ContentsFair value of outstanding derivative contracts(in millions)including the location of the asset and/or liability on the consolidated balance sheets:Derivative AssetsBalance Sheet LocationMar 31,2024Oct 1,2023Designated Derivative Instruments:Cross-cu

92、rrency swapsPrepaid expenses and other current assets$13.0$Other long-term assets164.5 130.1 DairyPrepaid expenses and other current assets0.5 0.4 Foreign currency-otherPrepaid expenses and other current assets27.3 32.0 Other long-term assets16.7 22.9 Interest rate swapsPrepaid expenses and other cu

93、rrent assets 0.4 Non-designated Derivative Instruments:DairyPrepaid expenses and other current assets0.1 Diesel fuel and other commoditiesPrepaid expenses and other current assets0.2 0.7 Foreign currencyPrepaid expenses and other current assets7.0 7.5 Derivative LiabilitiesBalance Sheet LocationMar

94、31,2024Oct 1,2023Designated Derivative Instruments:DairyAccrued liabilities$1.7$1.1 Foreign currency-otherAccrued liabilities2.6 2.0 Other long-term liabilities2.2 Interest rate swapsOther long-term liabilities32.9 41.4 Non-designated Derivative Instruments:DairyAccrued liabilities0.4 Diesel fuel an

95、d other commoditiesAccrued liabilities0.1 Foreign currencyAccrued liabilities0.7 0.5 Other long-term liabilities 1.8 The following amounts were recorded on the consolidated balance sheets related to fixed-to-floating interest rate swaps designated in fair value hedgingrelationships(in millions):Carr

96、ying amount of hedged itemCumulative amount of fair value hedging adjustmentincluded in the carrying amountMar 31,2024Oct 1,2023Mar 31,2024Oct 1,2023Location on the balance sheetLong-term debt$318.6$1,060.0$(31.4)$(40.0)Balance as of October 1,2023 includes$750 million in senior notes that matured o

97、n October 1,2023 but remained in current portion of long-term debt onthe consolidated balance sheet as the debt repayment was not made until the first day of fiscal 2024.Additional disclosures related to cash flow gains and losses included in AOCI,as well as subsequent reclassifications to earnings,

98、are included in Note 11,Equity.(1)(1)15Table of ContentsNote 4:Fair Value MeasurementsAssets and liabilities measured at fair value on a recurring basis(in millions):Fair Value Measurements at Reporting Date Using Balance atMarch 31,2024Quoted Prices in ActiveMarkets for Identical Assets(Level 1)Sig

99、nificant OtherObservable Inputs(Level 2)Significant Unobservable Inputs(Level 3)Assets:Cash and cash equivalents$2,764.1$2,764.1$Short-term investments:Available-for-sale debt securitiesCorporate debt securities37.7 37.7 Foreign corporate bonds0.2 0.2 Mortgage and other asset-backedsecurities0.3 0.3

100、 State and local government obligations1.4 1.4 U.S.government treasury securities16.5 16.5 Total available-for-sale debt securities56.1 16.5 39.6 Structured deposits221.9 221.9 Marketable equity securities84.5 84.5 Total short-term investments362.5 101.0 261.5 Prepaid expenses and other current asse

101、ts:Derivative assets48.1 48.1 Long-term investments:Available-for-sale debt securitiesCorporate debt securities127.4 116.9 10.5 Mortgage and other asset-backedsecurities52.6 52.6 State and local government obligations2.7 2.7 U.S.government treasury securities97.5 97.5 Total available-for-sale debt s

102、ecurities280.2 97.5 172.2 10.5 Structured deposits0.2 0.2 Total long-term investments280.4 97.5 172.4 10.5 Other long-term assets:Derivative assets181.2 181.2 Total assets$3,636.3$2,962.6$663.2$10.5 Liabilities:Accrued liabilities:Derivative liabilities$5.5$5.5$Other long-term liabilities:Derivative

103、 liabilities35.1 35.1 Total liabilities$40.6$40.6$16Table of Contents Fair Value Measurements at Reporting Date Using Balance atOctober 1,2023Quoted Prices in ActiveMarkets for IdenticalAssets(Level 1)Significant OtherObservable Inputs(Level 2)SignificantUnobservable Inputs(Level 3)Assets:Cash and c

104、ash equivalents$3,551.5$3,551.5$Short-term investments:Available-for-sale debt securitiesCorporate debt securities64.0 64.0 U.S.government treasury securities2.8 2.8 Foreign government obligations3.9 3.9 Total available-for-sale debt securities70.7 2.8 67.9 Structured deposits261.2 261.2 Marketable

105、equity securities69.6 69.6 Total short-term investments401.5 72.4 329.1 Prepaid expenses and other current assets:Derivative assets41.0 41.0 Long-term investments:Available-for-sale debt securitiesCorporate debt securities91.1 91.1 Mortgage and other asset-backed securities50.2 50.2 State and local

106、government obligations1.3 1.3 U.S.government treasury securities104.7 104.7 Total long-term investments247.3 104.7 142.6 Other long-term assets:Derivative assets153.0 153.0 Total assets$4,394.3$3,728.6$665.7$Liabilities:Accrued liabilities:Derivative liabilities$3.6$3.6$Other long-term liabilities:D

107、erivative liabilities43.2 43.2 Total liabilities$46.8$46.8$There were no material transfers between levels,and there was no significant activity within Level 3 instruments during the periods presented.The fair valuesof any financial instruments presented above exclude the impact of netting assets an

108、d liabilities when a legally enforceable master netting agreement exists.Gross unrealized holding gains and losses on available-for-sale debt securities,structured deposits,and marketable equity securities were not material as ofMarch 31,2024 and October 1,2023.Assets and Liabilities Measured at Fai

109、r Value on a Nonrecurring BasisAssets and liabilities recognized or disclosed at fair value on the consolidated financial statements on a nonrecurring basis include items such as property,plantand equipment,ROU assets,goodwill and other intangible assets,equity and other investments,and other assets

110、.These assets are measured at fair value ifdetermined to be impaired.The estimated fair value of our long-term debt based on the quoted market price(Level 2)is included at Note 8,Debt.There were no material fair valueadjustments during the two quarters ended March 31,2024 and April 2,2023.17Table of

111、 ContentsNote 5:Inventories(in millions):Mar 31,2024Oct 1,2023Coffee:Unroasted$694.9$747.7 Roasted257.7 280.3 Other merchandise held for sale313.4 364.6 Packaging and other supplies478.0 413.8 Total$1,744.0$1,806.4 Other merchandise held for sale includes,among other items,serveware,food,and tea.Inv

112、entory levels vary due to seasonality,commodity market supply,andprice fluctuations.As of March 31,2024,we had committed to purchasing green coffee totaling$398.6 million under fixed-price contracts and an estimated$855.6 million underprice-to-be-fixed contracts.A portion of our price-to-be-fixed co

113、ntracts are effectively fixed through the use of futures.See Note 3,Derivative FinancialInstruments,for further discussion.Price-to-be-fixed contracts are purchase commitments whereby the quality,quantity,delivery period,and other negotiatedterms are agreed upon,but the date,and therefore the price,

114、at which the base“C”coffee commodity price component will be fixed has not yet beenestablished.For most contracts,either Starbucks or the seller has the option to“fix”the base“C”coffee commodity price prior to the delivery date.For othercontracts,Starbucks and the seller may agree upon pricing param

115、eters determined by the base“C”coffee commodity price.Until prices are fixed,we estimatethe total cost of these purchase commitments.We believe,based on established relationships with our suppliers and continuous monitoring,the risk of non-delivery on these purchase commitments is remote.Note 6:Supp

116、lemental Balance Sheet and Statement of Earnings Information(in millions):Property,Plant and Equipment,netMar 31,2024Oct 1,2023Land$46.1$46.1 Buildings671.8 666.5 Leasehold improvements10,532.8 10,133.7 Store equipment3,468.0 3,332.5 Roasting equipment880.1 859.4 Furniture,fixtures and other1,741.1

117、1,664.5 Work in progress713.5 607.5 Property,plant and equipment,gross18,053.4 17,310.2 Accumulated depreciation(10,236.0)(9,923.1)Property,plant and equipment,net$7,817.4$7,387.1 Accrued LiabilitiesMar 31,2024Oct 1,2023Accrued occupancy costs$78.0$86.7 Accrued dividends payable645.5 651.2 Accrued c

118、apital and other operating expenditures743.7 771.7 Insurance reserves252.0 233.5 Income taxes payable102.6 189.3 Accrued business taxes194.2 212.7 Total accrued liabilities$2,016.0$2,145.1 18Table of ContentsStore Operating ExpensesQuarter EndedTwo Quarters EndedMar 31,2024Apr 2,2023Mar 31,2024Apr 2

119、,2023Wages and benefits$2,139.4$2,174.3$4,348.7$4,389.9 Occupancy costs741.3 703.4 1,487.0 1,374.9 Other expenses843.4 758.3 1,739.9 1,536.5 Total store operating expenses$3,724.1$3,636.0$7,575.6$7,301.3 Note 7:Other Intangible Assets and GoodwillIndefinite-Lived Intangible Assets(in millions)Mar 31

120、,2024Oct 1,2023Trade names,trademarks and patents$79.5$79.4 Finite-Lived Intangible AssetsMar 31,2024Oct 1,2023(in millions)Gross CarryingAmountAccumulatedAmortizationNet CarryingAmountGross CarryingAmountAccumulatedAmortizationNet CarryingAmountAcquired and reacquired rights$962.0$(962.0)$957.6$(95

121、7.6)$Acquired trade secrets and processes27.6(27.6)27.6(27.6)Trade names,trademarks and patents130.3(100.6)29.7 131.0(91.9)39.1 Licensing agreements12.9(11.4)1.5 13.0(11.0)2.0 Other finite-lived intangible assets20.3(20.3)20.1(20.1)Total finite-lived intangible assets$1,153.1$(1,121.9)$31.2$1,149.3$

122、(1,108.2)$41.1 Amortization expense for finite-lived intangible assets was$5.1 million and$10.2 million for the quarter and two quarters ended March 31,2024,respectively,and$5.3 million and$10.9 million for the quarter and two quarters ended April 2,2023,respectively.Estimated future amortization ex

123、pense as of March 31,2024(in millions):Fiscal YearTotal2024(excluding the two quarters ended March 31,2024)$9.9 202514.0 20262.1 20271.8 20281.2 Thereafter2.2 Total estimated future amortization expense$31.2 GoodwillChanges in the carrying amount of goodwill by reportable operating segment(in millio

124、ns):North AmericaInternationalChannel DevelopmentCorporate and OtherTotalGoodwill balance at October 1,2023$491.5$2,691.1$34.7$1.0$3,218.3 Other(0.1)11.1 11.0 Goodwill balance at March 31,2024$491.4$2,702.2$34.7$1.0$3,229.3“Other”consists of changes in the goodwill balance resulting from foreign cur

125、rency translation.(1)(1)19Table of ContentsNote 8:DebtRevolving Credit FacilityOur$3.0 billion unsecured five-year revolving credit facility(the“2021 credit facility”),of which$150.0 million may be used for issuances of letters of credit,is currently set to mature on September 16,2026.The 2021 credi

126、t facility is available for working capital,capital expenditures,and other corporate purposes,including acquisitions and share repurchases.We have the option,subject to negotiation and agreement with the related banks,to increase the maximumcommitment amount by an additional$1.0 billion.Borrowings u

127、nder the 2021 credit facility,which was most recently amended in April 2023,will bear interest at a variable rate based on Term SOFR,and,forU.S.dollar-denominated loans under certain circumstances,a Base Rate(as defined in the 2021 credit facility),in each case plus an applicable margin.Theapplicabl

128、e margin is based on the Companys long-term credit ratings assigned by the Moodys and Standard&Poors rating agencies.The“Base Rate”is thehighest of(i)the Federal Funds Rate(as defined in the 2021 credit facility)plus 0.500%,(ii)Bank of Americas prime rate,and(iii)Term SOFR plus 1.000%.Term SOFR mean

129、s the forward-looking SOFR term rate administrated by the Chicago Mercantile Exchange plus a SOFR Adjustment of 0.100%.The 2021 credit facility contains provisions requiring us to maintain compliance with certain covenants,including a minimum fixed charge coverage ratio,which measures our ability to

130、 cover financing expenses.As of March 31,2024,we were in compliance with all applicable covenants.No amounts wereoutstanding under our 2021 credit facility as of March 31,2024 or October 1,2023.Short-term DebtUnder our commercial paper program,we may issue unsecured commercial paper notes up to a ma

131、ximum aggregate amount outstanding at any time of$3.0billion,with individual maturities that may vary but not exceed 397 days from the date of issue.Amounts outstanding under the commercial paper program arerequired to be backstopped by available commitments under our 2021 credit facility.The procee

132、ds from borrowings under our commercial paper program maybe used for working capital needs,capital expenditures,and other corporate purposes,including,but not limited to,business expansion,payment of cashdividends on our common stock,and share repurchases.No amounts were outstanding under our commer

133、cial paper program as of March 31,2024 andOctober 1,2023.Additionally,we hold the following Japanese yen-denominated credit facilities that are available for working capital needs and capital expenditures within ourJapanese market:A 5.0 billion,or$33.0 million,credit facility is currently set to mat

134、ure on December 30,2024.Borrowings under this credit facility are subject toterms defined within the facility and will bear interest at a variable rate based on Tokyo Interbank Offered Rate(“TIBOR”)plus an applicable marginof 0.400%.A 10.0 billion,or$66.1 million,credit facility is currently set to

135、mature on March 27,2025.Borrowings under this credit facility are subject to termsdefined within the facility and will bear interest at a variable rate based on TIBOR plus an applicable margin of 0.300%.As of March 31,2024,we had 5.0 billion,or$33.0 million,of borrowings outstanding under these cred

136、it facilities.As of October 1,2023,we had 5.0 billion,or$33.5 million,of borrowings outstanding under these credit facilities.20Table of ContentsLong-term DebtComponents of long-term debt including the associated interest rates and related estimated fair values by calendar maturity(in millions,excep

137、t interest rates):Mar 31,2024Oct 1,2023Stated Interest RateEffective InterestRateIssuanceAmountEstimated FairValueAmountEstimated FairValueOctober 2023 notes$750.0$749.9 3.850%2.859%February 2024 notes 500.0 504.2 5.848%6.079%March 2024 notes 569.3 569.3 0.372%0.462%August 2025 notes1,250.0 1,225.4

138、1,250.0 1,210.5 3.800%3.721%February 2026 notes1,000.0 994.3 1,000.0 985.5 4.750%4.788%June 2026 notes500.0 472.5 500.0 463.5 2.450%2.511%February 2027 notes1,000.0 998.0 4.850%4.958%March 2027 notes500.0 459.6 500.0 446.1 2.000%2.058%March 2028 notes600.0 570.4 600.0 554.7 3.500%3.529%November 2028

139、 notes750.0 726.8 750.0 704.5 4.000%3.958%August 2029 notes1,000.0 942.6 1,000.0 904.1 3.550%3.840%March 2030 notes750.0 646.4 750.0 615.1 2.250%3.084%November 2030 notes1,250.0 1,083.6 1,250.0 1,027.1 2.550%2.582%February 2031 notes500.0 497.4 4.900%5.046%February 2032 notes1,000.0 874.8 1,000.0 82

140、8.0 3.000%3.155%February 2033 notes500.0 495.0 500.0 470.7 4.800%3.798%February 2034 notes500.0 496.5 5.000%5.127%June 2045 notes350.0 303.7 350.0 275.3 4.300%4.348%December 2047 notes500.0 393.7 500.0 354.0 3.750%3.765%November 2048 notes1,000.0 878.0 1,000.0 799.0 4.500%4.504%August 2049 notes1,00

141、0.0 869.5 1,000.0 792.7 4.450%4.447%March 2050 notes500.0 355.8 500.0 328.6 3.350%3.362%November 2050 notes1,250.0 925.9 1,250.0 843.4 3.500%3.528%Total15,700.0 14,209.9 15,519.3 13,426.2 Aggregate debt issuance costs andunamortized premium/(discount),net(121.1)(113.1)Hedge accounting fair value adj

142、ustment(31.4)(40.0)Total$15,547.5$15,366.2 Includes the effects of the amortization of any premium or discount and any gain or loss upon settlement of related treasury locks or forward-startinginterest rate swaps utilized to hedge interest rate risk prior to the debt issuance.Amount includes the cha

143、nge in fair value due to changes in benchmark interest rates related to hedging our October 2023 notes and$350.0 million of ourAugust 2029 notes.Refer to Note 3,Derivative Financial Instruments,for additional information on our interest rate swap agreements designated as fairvalue hedges.Floating ra

144、te notes that bear interest at a rate equal to Compounded SOFR(as defined in the February 2024 notes)plus 0.420%,resulting in a statedinterest rate of 5.848%at maturity on February 14,2024.Japanese yen-denominated long-term debt.(1)(2)(3)(4)(2)(2)(1)(2)(3)(4)21Table of ContentsThe following table su

145、mmarizes our long-term debt maturities as of March 31,2024 by fiscal year(in millions):Fiscal YearTotal2024$20251,250.0 20261,500.0 20271,500.0 2028600.0 Thereafter10,850.0 Total$15,700.0 Note 9:LeasesThe components of lease costs(in millions):Quarter EndedTwo Quarters EndedMar 31,2024Apr 2,2023Mar

146、31,2024Apr 2,2023Operating lease costs$424.1$401.7$841.5$786.5 Variable lease costs271.7 253.9 543.6 489.2 Short-term lease costs7.2 7.0 14.9 14.0 Total lease costs$703.0$662.6$1,400.0$1,289.7 Includes immaterial amounts of sublease income and rent concessions.The following table includes supplement

147、al information(in millions):Two Quarters EndedMar 31,2024Apr 2,2023Cash paid related to operating lease liabilities$778.8$819.0 Operating lease liabilities arising from obtaining right-of-use assets980.5 828.0 Mar 31,2024Apr 2,2023Weighted-average remaining operating lease term8.6 years8.5 yearsWeig

148、hted-average operating lease discount rate3.2%2.9%Finance lease assets are recorded in property,plant and equipment,net with the corresponding lease liabilities included in accrued liabilities and other long-term liabilities on the consolidated balance sheet.There were no material finance leases as

149、of March 31,2024 and October 1,2023.Minimum future maturities of operating lease liabilities(in millions):Fiscal YearTotal2024(excluding the two quarters ended March 31,2024)$861.1 20251,658.0 20261,515.8 20271,338.7 20281,139.4 Thereafter4,589.9 Total lease payments11,102.9 Less imputed interest(1,

150、515.9)Total$9,587.0 As of March 31,2024,we have entered into operating leases that have not yet commenced of$1.6 billion,primarily related to real estate leases.These leaseswill commence between fiscal year 2024 and fiscal year 2027 with lease terms ranging from two to twenty years.(1)(1)22Table of

151、ContentsNote 10:Deferred RevenueOur deferred revenue primarily consists of the prepaid royalty from Nestl,for which we have continuing performance obligations to support the Global CoffeeAlliance,our unredeemed stored value card liability,and unredeemed loyalty points(“Stars”)associated with our loy

152、alty program.As of March 31,2024,the current and long-term deferred revenue related to the Nestl up-front payment was$177.0 million and$5.9 billion,respectively.Asof October 1,2023,the current and long-term deferred revenue related to the Nestl up-front payment was$177.0 million and$6.0 billion,resp

153、ectively.Duringeach of the quarters ended March 31,2024 and April 2,2023,we recognized$44.1 million of prepaid royalty revenue related to Nestl.During each of the twoquarters ended March 31,2024 and April 2,2023,we recognized$88.2 million of prepaid royalty revenue related to Nestl.Changes in our de

154、ferred revenue balance related to our stored value cards and loyalty program(in millions):Quarter Ended March 31,2024TotalStored value cards and loyalty program at December 31,2023$2,169.7 Revenue deferred-card activations,card reloads and Stars earned3,456.5 Revenue recognized-card and Stars redemp

155、tions and breakage(3,792.4)Other(14.9)Stored value cards and loyalty program at March 31,2024$1,818.9 Quarter Ended April 2,2023TotalStored value cards and loyalty program at January 1,2023$2,025.6 Revenue deferred-card activations,card reloads and Stars earned3,416.0 Revenue recognized-card and Sta

156、rs redemptions and breakage(3,778.4)Other1.3 Stored value cards and loyalty program at April 2,2023$1,664.5 Two Quarters Ended March 31,2024TotalStored value cards and loyalty program at October 1,2023$1,567.5 Revenue deferred-card activations,card reloads and Stars earned8,143.7 Revenue recognized-

157、card and Stars redemptions and breakage(7,890.8)Other(1.5)Stored value cards and loyalty program at March 31,2024$1,818.9 Two Quarters Ended April 2,2023TotalStored value cards and loyalty program at October 2,2022$1,503.0 Revenue deferred-card activations,card reloads and Stars earned7,639.4 Revenu

158、e recognized-card and Stars redemptions and breakage(7,492.5)Other14.6 Stored value cards and loyalty program at April 2,2023$1,664.5“Other”primarily consists of changes in the stored value cards and loyalty program balances resulting from foreign currency translation.As of March 31,2024 and April 2

159、,2023,approximately$1.7 billion and$1.6 billion,respectively,of these amounts were current.(1)(2)(1)(2)(1)(2)(1)(2)(1)(2)23Table of ContentsNote 11:EquityChanges in AOCI by component,net of tax(in millions):Quarter Ended Available-for-SaleDebt Securities Cash FlowHedges Net InvestmentHedgesTranslati

160、onAdjustment andOtherTotalMarch 31,2024Net gains/(losses)in AOCI,beginning of period$(7.9)$15.7$217.7$(783.3)$(557.8)Net gains/(losses)recognized in OCI before reclassifications(0.3)27.1 69.2(150.0)(54.0)Net(gains)/losses reclassified from AOCI to earnings0.3(2.2)(7.7)(9.6)Other comprehensive income

161、/(loss)attributable to Starbucks 24.9 61.5(150.0)(63.6)Other comprehensive income/(loss)attributable to NCI (0.1)(0.1)Net gains/(losses)in AOCI,end of period$(7.9)$40.6$279.2$(933.4)$(621.5)April 2,2023Net gains/(losses)in AOCI,beginning of period$(13.9)$(34.9)$156.8$(646.9)$(538.9)Net gains/(losses

162、)recognized in OCI before reclassifications2.8(1.1)(2.0)74.7 74.4 Net(gains)/losses reclassified from AOCI to earnings0.2(52.1)(5.2)(57.1)Other comprehensive income/(loss)attributable to Starbucks3.0(53.2)(7.2)74.7 17.3 Net gains/(losses)in AOCI,end of period$(10.9)$(88.1)$149.6$(572.2)$(521.6)Two Q

163、uarters EndedAvailable-for-SaleDebt SecuritiesCash FlowHedgesNet InvestmentHedgesTranslationAdjustment andOtherTotalMarch 31,2024Net gains/(losses)in AOCI,beginning of period$(12.3)$(47.5)$243.3$(961.7)$(778.2)Net gains/(losses)recognized in OCI before reclassifications3.9 60.7 50.3 28.2 143.1 Net(g

164、ains)/losses reclassified from AOCI to earnings0.5 27.4(14.4)13.5 Other comprehensive income/(loss)attributable to Starbucks4.4 88.1 35.9 28.2 156.6 Other comprehensive income/(loss)attributable to NCI 0.1 0.1 Net gains/(losses)in AOCI,end of period$(7.9)$40.6$279.2$(933.4)$(621.5)April 2,2023Net ga

165、ins/(losses)in AOCI,beginning of period$(15.5)$199.0$209.1$(855.8)$(463.2)Net gains/(losses)recognized in OCI before reclassifications4.3(152.3)(50.3)283.6 85.3 Net(gains)/losses reclassified from AOCI to earnings0.3(134.8)(9.2)(143.7)Other comprehensive income/(loss)attributable to Starbucks4.6(287

166、.1)(59.5)283.6(58.4)Net gains/(losses)in AOCI,end of period$(10.9)$(88.1)$149.6$(572.2)$(521.6)24Table of ContentsImpact of reclassifications from AOCI on the consolidated statements of earnings(in millions):Quarter EndedAOCIComponentsAmounts Reclassified from AOCIAffected Line Item inthe Statements

167、 of EarningsMar 31,2024Apr 2,2023Gains/(losses)on available-for-sale debt securities$(0.4)$(0.3)Interest income and other,netGains/(losses)on cash flow hedges3.8 59.9 Please refer to Note 3,Derivative Financial Instrumentsfor additional information.Gains/(losses)on net investment hedges10.2 7.0 Inte

168、rest expense13.6 66.6 Total before tax(4.0)(9.5)Tax expense$9.6$57.1 Net of taxTwo Quarters EndedAOCIComponentsAmounts Reclassified from AOCIAffected Line Item inthe Statements of EarningsMar 31,2024Apr 2,2023Gains/(losses)on available-for-sale debt securities$(0.7)$(0.4)Interest income and other,ne

169、tGains/(losses)on cash flow hedges(29.7)153.1 Please refer to Note 3,Derivative Financial Instrumentsfor additional information.Gains/(losses)on net investment hedges19.1 12.3 Interest expense(11.3)165.0 Total before tax(2.2)(21.3)Tax expense$(13.5)$143.7 Net of taxIn addition to 2.4 billion shares

170、of authorized common stock with$0.001 par value per share,we have 7.5 million shares of authorized preferred stock,none ofwhich was outstanding as of March 31,2024.During the two quarters ended March 31,2024 and April 2,2023,we repurchased 12.8 million and 4.9 million shares of common stock on the o

171、pen market for$1,250.1 million and$495.3 million,respectively.As of March 31,2024,29.8 million shares remained available for repurchase under current authorizations.During the second quarter of fiscal 2024,our Board of Directors approved a quarterly cash dividend to shareholders of$0.57 per share to

172、 be paid on May 31,2024 to shareholders of record as of the close of business on May 17,2024.Note 12:Employee Stock PlansAs of March 31,2024,there were 84.9 million shares of common stock available for issuance pursuant to future equity-based compensation awards and 10.0million shares available for

173、issuance under our employee stock purchase plan.Stock-based compensation expense recognized in the consolidated statements of earnings(in millions):Quarter EndedTwo Quarters Ended Mar 31,2024Apr 2,2023Mar 31,2024Apr 2,2023Restricted Stock Units(“RSUs”)$78.3$74.1$173.2$159.2 Options(0.1)0.0(0.2)0.1 T

174、otal stock-based compensation expense$78.2$74.1$173.0$159.3 Stock option and RSU transactions from October 1,2023 through March 31,2024(in millions):Stock OptionsRSUsOptions outstanding/Nonvested RSUs,October 1,20232.0 7.3 Granted 4.1 Options exercised/RSUs vested(0.6)(2.9)Forfeited/expired(0.4)Opti

175、ons outstanding/Nonvested RSUs,March 31,20241.4 8.1 Total unrecognized stock-based compensation expense,net of estimated forfeitures,as of March 31,2024$314.1 25Table of ContentsNote 13:Earnings per ShareCalculation of net earnings per common share(“EPS”)basic and diluted(in millions,except EPS):Qua

176、rter EndedTwo Quarters EndedMar 31,2024Apr 2,2023Mar 31,2024Apr 2,2023Net earnings attributable to Starbucks$772.4$908.3$1,796.8$1,763.6 Weighted average common shares outstanding(for basic calculation)1,132.4 1,148.5 1,134.5 1,148.4 Dilutive effect of outstanding common stock options and RSUs3.0 4.

177、2 3.5 4.4 Weighted average common and common equivalent shares outstanding(for diluted calculation)1,135.4 1,152.7 1,138.0 1,152.8 EPS basic$0.68$0.79$1.58$1.54 EPS diluted$0.68$0.79$1.58$1.53 Potential dilutive shares consist of the incremental common shares issuable upon the exercise of outstandin

178、g stock options(both vested and non-vested)andunvested RSUs,calculated using the treasury stock method.The calculation of dilutive shares outstanding excludes anti-dilutive stock options or unvestedRSUs,which were immaterial in the periods presented.Note 14:Commitments and ContingenciesLegal Proceed

179、ingsStarbucks is involved in various legal proceedings arising in the ordinary course of business,including litigation matters associated with labor union organizingefforts and certain employment litigation cases that have been certified as class or collective actions,but is not currently a party to

180、 any legal proceeding thatmanagement believes could have a material adverse effect on our consolidated financial position,results of operations,or cash flows.While we are closelymonitoring the operational and financial impacts of labor union organizing efforts on our business,as of the date of this

181、filing,we believe the risk of a materialcontingent loss associated with these litigation matters is remote.Refer to the Risk Factors in Part I,Item 1A of our most recently filed 10-K for furtherdiscussion of potential risks to our brand and related impacts on our financial results.Note 15:Segment Re

182、portingSegment information is prepared on the same basis that our chief executive officer,who is our chief operating decision maker,manages the segments,evaluatesfinancial results,and makes key operating decisions.Consolidated revenue mix by product type(in millions):Quarter EndedTwo Quarters EndedM

183、ar 31,2024Apr 2,2023Mar 31,2024Apr 2,2023Beverage$5,160.6 60%$5,226.9 60%$10,856.4 60%$10,401.4 60%Food1,583.0 18%1,590.9 18%3,339.9 19%3,157.0 18%Other1,819.4 22%1,902.0 22%3,792.0 21%3,875.4 22%Total$8,563.0 100%$8,719.8 100%$17,988.3 100%$17,433.8 100%“Beverage”represents sales within our company

184、-operated stores.“Food”includes sales within our company-operated stores.“Other”primarily consists of packaged and single-serve coffees and teas,royalty and licensing revenues,beverage-related ingredients,and serveware,among other items.(1)(2)(3)(1)(2)(3)26Table of ContentsThe tables below present f

185、inancial information for our reportable operating segments and Corporate and Other(in millions):Quarter EndedNorth AmericaInternationalChannelDevelopmentCorporate andOtherTotalMarch 31,2024Total net revenues$6,380.0$1,757.3$418.2$7.5$8,563.0 Depreciation and amortization expenses257.1 84.3 30.5 371.

186、9 Income from equity investees 0.2 67.8 68.0 Operating income/(loss)$1,148.3$233.8$216.3$(499.5)$1,098.9 April 2,2023Total net revenues$6,380.6$1,854.8$480.7$3.7$8,719.8 Depreciation and amortization expenses226.3 86.3 0.0 29.3 341.9 Income from equity investees 0.8 50.6 51.4 Operating income/(loss)

187、$1,217.9$314.7$262.1$(467.2)$1,327.5 Two Quarters EndedNorth AmericaInternationalChannelDevelopmentCorporate andOtherTotalMarch 31,2024Total net revenues$13,500.7$3,603.6$866.2$17.8$17,988.3 Depreciation and amortization expenses507.5 168.3 61.4 737.2 Income from equity investees 0.3 123.5 123.8 Ope

188、rating income/(loss)$2,669.1$475.3$426.0$(986.1)$2,584.3 April 2,2023Total net revenues$12,931.8$3,534.9$958.9$8.2$17,433.8 Depreciation and amortization expenses443.1 167.7 0.1 58.1 669.0 Income from equity investees 1.2 108.0 109.2 Operating income/(loss)$2,430.4$555.1$488.4$(893.2)$2,580.7 27Tabl

189、e of ContentsItem 2.Managements Discussion and Analysis of Financial Condition and Results of OperationsCAUTIONARY STATEMENT PURSUANT TO THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995Certain statements contained herein are“forward-looking”statements within the meaning of applicable securities

190、laws and regulations.Generally,thesestatements can be identified by the use of words such as“aim,”“anticipate,”“believe,”“continue,”“could,”“estimate,”“expect,”“feel,”“forecast,”“intend,”“may,”“outlook,”“plan,”“potential,”“predict,”“project,”“seek,”“should,”“will,”“would,”and similar expressions int

191、ended to identifyforward-looking statements,although not all forward-looking statements contain these identifying words.By their nature,forward-looking statements involverisks,uncertainties,and other factors(many beyond our control)that could cause our actual results to differ materially from our hi

192、storical experience or fromour current expectations or projections.Our forward-looking statements,and the risks and uncertainties related thereto,include,but are not limited to,thosedescribed under the“Risk Factors”and“Managements Discussion and Analysis of Financial Condition and Results of Operati

193、ons”sections of our mostrecently filed 10-K and 10-Q and in other filings with the SEC,as well as:our ability to preserve,grow,and leverage our brands,including the risk of negative responses by consumers(such as boycotts or negative publicitycampaigns)or governmental actors(such as retaliatory legi

194、slative treatment)who object to certain actions taken or not taken by the Company,whichresponses could adversely affect our brand value;the acceptance of the Companys products and changes in consumer preferences,consumption,or spending behavior and our ability to anticipate orreact to them;shifts in

195、 demographic or health and wellness trends;or unfavorable consumer reaction to new products,platforms,reformulations,orother innovations;our anticipated operating expenses,including our anticipated total capital expenditures;the costs associated with,and the successful execution and effects of,our e

196、xisting and any future business opportunities,expansions,initiatives,strategies,investments,and plans,including our Triple Shot Reinvention with Two Pumps Plan(“Reinvention”);the impacts of partner investments and changes in the availability and cost of labor including any union organizing efforts a

197、nd our responses to suchefforts;the ability of our business partners,suppliers,and third-party providers to fulfill their responsibilities and commitments;higher costs,lower quality,or unavailability of coffee,dairy,cocoa,energy,water,raw materials,or product ingredients;the impact of significant in

198、creases in logistics costs;a worsening in the terms and conditions upon which we engage with our manufacturers and source suppliers,whether resulting from broader local orglobal conditions,or dynamics specific to our relationships with such parties;unfavorable global or regional economic conditions

199、and related economic slowdowns or recessions,low consumer confidence,high unemployment,weak credit or capital markets,budget deficits,burdensome government debt,austerity measures,higher interest rates,higher taxes,politicalinstability,higher inflation,or deflation;inherent risks of operating a glob

200、al business including geopolitical instability;failure to attract or retain key executive or partner talent or successfully transition executives;the potential negative effects of incidents involving food or beverage-borne illnesses,tampering,adulteration,contamination,or mislabeling;negative public

201、ity related to our Company,products,brands,marketing,executive leadership,partners,Board of Directors,founder,operations,business performance,expansions,initiatives,strategies,investments,plans,or prospects;potential negative effects of a material breach,failure,or corruption of our information tech

202、nology systems or those of our direct and indirectbusiness partners,suppliers,or third-party providers,or failure to comply with data protection laws;our environmental,social,and governance(“ESG”)efforts and any reaction related thereto,such as the rise in opposition to ESG and inclusion anddiversit

203、y efforts;risks associated with acquisitions,dispositions,business partnerships,or investments such as acquisition integration,termination difficulties orcosts,or impairment in recorded value;the impact of foreign currency translation,particularly a stronger U.S.dollar;the impact of substantial comp

204、etition from new entrants,consolidations by competitors,and other competitive activities,such as pricing actions(including price reductions,promotions,discounting,couponing,or free goods),marketing,category expansion,product introductions,or entry orexpansion in our geographic markets;the impact of

205、changes in U.S.tax law and related guidance and regulations that may be implemented,including on tax rates;the impact of health epidemics,pandemics,or other public health events on our business and financial results,and the risk of negative economicimpacts and related regulatory measures or voluntar

206、y actions that may be put in place,including restrictions on business operations or socialdistancing requirements,and the duration and efficacy of such restrictions;failure to comply with anti-corruption laws,trade sanctions,and restrictions,or similar laws or regulations;andthe impact of significan

207、t legal disputes and proceedings,or government investigations.In addition,many of the foregoing risks and uncertainties are,or could be,exacerbated by any worsening of the global business and economic environment.Aforward-looking statement is neither a prediction nor a guarantee of future events or2

208、8Table of Contentscircumstances,and those future events or circumstances may not occur.You should not place undue reliance on the forward-looking statements,which speakonly as of the date of this report.We are under no obligation to update or alter any forward-looking statements,whether as a result

209、of new information,futureevents,or otherwise.This information should be read in conjunction with the unaudited consolidated financial statements and the notes included in Item 1 of Part I of this 10-Q andthe audited consolidated financial statements and notes,and Managements Discussion and Analysis

210、of Financial Condition and Results of Operations(“MD&A”),contained in the 10-K filed with the SEC on November 17,2023.29Table of ContentsIntroduction and OverviewStarbucks is the premier roaster,marketer,and retailer of specialty coffee in the world,operating in 86 markets.As of March 31,2024,Starbu

211、cks had morethan 38,900 company-operated and licensed stores,an increase of 6%from the prior year.Additionally,we sell a variety of consumer-packaged goods,primarily through the Global Coffee Alliance established with Nestl and other partnerships and joint ventures.We have three reportable operating

212、 segments:1)North America,which is inclusive of the U.S.and Canada;2)International,which is inclusive of China,Japan,Asia Pacific,Europe,Middle East,Africa,Latin America,and the Caribbean;and 3)Channel Development.Unallocated corporate expenses are reportedwithin Corporate and Other.We believe our f

213、inancial results and long-term growth model will continue to be driven by new store openings,comparable store sales growth,and operatingmargin management,underpinned by disciplined capital allocation.We believe these key operating metrics are useful to investors because management usesthese metrics

214、to assess the growth of our business and the effectiveness of our marketing and operational strategies.Throughout this MD&A,we commonlydiscuss the following key operating metrics:New store openings and store countComparable store sales growthOperating marginComparable store sales growth represents t

215、he percentage change in sales in one period from the same prior year period for company-operated stores open for13 months or longer and excludes the impact of foreign currency translation.We analyze comparable store sales growth on a constant currency basis as thishelps identify underlying business

216、trends,without distortion from the effects of currency movements.Stores that are temporarily closed or operating at reducedhours remain in comparable store sales while stores identified for permanent closure have been removed.Our fiscal year ends on the Sunday closest to September 30.Fiscal 2024 and

217、 2023 include 52 weeks.All references to store counts,including data for new storeopenings,are reported net of store closures,unless otherwise noted.Starbucks results for the second quarter of fiscal 2024 reflect a complex operating environment globally,including softening consumer sentiment,a perva

218、siveinflationary environment,and disruptions due to multiple international conflicts.However,efficiencies continue to be realized from the strategies underpinningReinvention,leading to tangible financial benefits,which counterbalance broader headwinds.During the second quarter of fiscal 2024,consoli

219、dated netrevenues decreased 2%to$8.6 billion compared to$8.7 billion in the second quarter of fiscal 2023,primarily driven by a decline in global comparable storesales and unfavorable foreign currency fluctuations,partially offset by incremental revenues from net new company-operated store openings

220、over the past 12months.During the quarter ended March 31,2024,our global comparable store sales declined 4%,primarily driven by a 3%decline in the U.S.market and a6%decline internationally.Consolidated operating margin decreased 240 basis points from the prior year to 12.8%,primarily driven by delev

221、erage,increasedinvestments in store partner wages and benefits,increased promotional activity,lapping the gain from the sale of our Seattles Best Coffee brand in the secondquarter of fiscal 2023,and higher general and administrative expenses,primarily in support of Reinvention.These decreases were p

222、artially offset by strategicpricing and in-store operational efficiencies.We anticipate the complex global operating environment and the related headwinds we experienced in the first half of fiscal 2024 may continue to impact thebalance of our fiscal year.Despite these challenges,we have many streng

223、ths to build upon,including our global brand,our loyal global customer base,strongnew store performance,an innovative pipeline of products,and our continued execution against Reinvention-related operational efficiencies.Our Triple ShotReinvention strategy is progressing,enhancing our capabilities an

224、d giving us continued confidence in our long-term growth and durable business model.Results of Operations(in millions)Revenues Quarter EndedTwo Quarters EndedMar 31,2024Apr 2,2023$Change%ChangeMar 31,2024Apr 2,2023$Change%ChangeCompany-operated stores$7,052.6$7,142.3$(89.7)(1.3)%$14,807.9$14,225.7$5

225、82.2 4.1%Licensed stores1,054.5 1,069.5(15.0)(1.4)2,246.6 2,189.0 57.6 2.6 Other455.9 508.0(52.1)(10.3)933.8 1,019.1(85.3)(8.4)Total net revenues$8,563.0$8,719.8$(156.8)(1.8)%$17,988.3$17,433.8$554.5 3.2%For the quarter ended March 31,2024 compared with the quarter ended April 2,202330Table of Conte

226、ntsTotal net revenues for the second quarter of fiscal 2024 decreased$157 million,primarily due to lower revenues from company-operated stores($90 million).The decrease in revenues from company-operated stores was driven by a 4%decrease in comparable store sales($253 million),attributable to a 6%dec

227、rease incomparable transactions and a 2%increase in average ticket.Also contributing to company-operated stores revenue were unfavorable foreign currencytranslation impacts($91 million).Partially offsetting these decreases were incremental revenues from 1,454 net new company-operated stores,or an 8%

228、increase,over the past 12 months($255 million).Licensed stores revenue decreased$15 million,primarily driven by lower product and equipment sales to and royalty revenues from our licensees($11 million)and unfavorable foreign currency translation impacts($7 million).Other revenues decreased$52 millio

229、n,primarily due to a decline in revenue in the Global Coffee Alliance($59 million)following the sale of our Seattles BestCoffee brand to Nestl in the second quarter of fiscal 2023 as well as product SKU optimization.For the two quarters ended March 31,2024 compared with the two quarters ended April

230、2,2023Total net revenues for the first two quarters of fiscal 2024 increased$555 million,primarily due to higher revenues from company-operated stores($582million).The growth of company-operated stores revenue was driven by incremental revenues from 1,454 net newcompany-operated stores,or an 8%incre

231、ase,over the past 12 months($582 million).Also contributing to the growth of company-operated stores revenue was a 1%increase in comparable store sales($117million),attributable to a 2%increase in average ticket,partially offset by a 1%decrease in comparable transactions.Partially offsetting these i

232、ncreases tocompany-operated stores revenue were unfavorable foreign currency translation impacts($121 million).Licensed stores revenue increased$58 million,driven by higher product and equipment sales to,and royalty revenues from,our licensees($51 million),primarily driven by revenues from 863 net n

233、ew licensed store openings,or a 5%increase,over the past 12 months.Other revenues decreased$85 million,primarily due to a decline in revenue in the Global Coffee Alliance($78 million)following the sale of our Seattles BestCoffee brand to Nestl in the second quarter of fiscal 2023 as well as product

234、SKU optimization.Operating Expenses Quarter EndedTwo Quarters EndedMar 31,2024Apr 2,2023$ChangeMar 31,2024Apr 2,2023Mar 31,2024Apr 2,2023$ChangeMar 31,2024Apr 2,2023As a%ofTotal Net RevenuesAs a%ofTotal Net RevenuesProduct and distributioncosts$2,648.7$2,801.7$(153.0)30.9%32.1%$5,629.2$5,611.9$17.3

235、31.3%32.2%Store operating expenses3,724.1 3,636.0 88.1 43.5 41.7 7,575.6 7,301.3 274.3 42.1 41.9 Other operating expenses132.8 126.2 6.6 1.6 1.4 283.2 255.4 27.8 1.6 1.5 Depreciation andamortization expenses371.9 341.9 30.0 4.3 3.9 737.2 669.0 68.2 4.1 3.8 General and administrativeexpenses654.6 620

236、.4 34.2 7.6 7.1 1,302.6 1,201.3 101.3 7.2 6.9 Restructuring andimpairments 8.8(8.8)0.1 14.7(14.7)0.1 Total operating expenses7,532.1 7,535.0(2.9)88.0 86.4 15,527.8 15,053.6 474.2 86.3 86.3 Income from equityinvestees68.0 51.4 16.6 0.8 0.6 123.8 109.2 14.6 0.7 0.6 Gain from sale of assets 91.3(91.3)1

237、.0 91.3(91.3)0.5 Operating income$1,098.9$1,327.5$(228.6)12.8%15.2%$2,584.3$2,580.7$3.6 14.4%14.8%Store operating expenses as a%ofcompany-operated stores revenue52.8%50.9%51.2%51.3%For the quarter ended March 31,2024 compared with the quarter ended April 2,2023 31Table of ContentsProduct and distrib

238、ution costs as a percentage of total net revenues decreased 120 basis points for the second quarter of fiscal 2024,primarily due to the impactof increased sales from pricing(approximately 60 basis points)and a reduction in supply chain costs(approximately 50 basis points).Store operating expenses as

239、 a percentage of total net revenues increased 180 basis points for the second quarter of fiscal 2024.Store operating expenses as apercentage of company-operated stores revenue increased 190 basis points,primarily due to increased investments in store partner wages and benefits(approximately 160 basi

240、s points),deleverage(approximately 110 basis points),and increased promotional activity(approximately 60 basis points).Theseincreases were partially offset by in-store operational efficiencies(approximately 180 basis points).Other operating expenses increased$7 million,primarily due to support costs

241、 for our growing licensed markets.Depreciation and amortization expenses as a percentage of total net revenues increased 40 basis points,primarily due to deleverage.General and administrative expenses increased$34 million,primarily due to certain proxy solicitation and advisory services costs($30 mi

242、llion)andincremental investments in technology($22 million).These increases were partially offset by the lapping of a donation to the Starbucks Foundation made inthe second quarter of fiscal 2023($15 million).Gain from sale of assets includes the sale of our Seattles Best Coffee Brand to Nestl in th

243、e second quarter of fiscal 2023.Income from equity investees increased$17 million,primarily due to higher income from our North American Coffee Partnership joint venture.The combination of these changes resulted in an overall decrease in operating margin of 240 basis points for the second quarter of

244、 fiscal 2024.For the two quarters ended March 31,2024 compared with the two quarters ended April 2,2023Product and distribution costs as a percentage of total net revenues decreased 90 basis points for the first two quarters of fiscal 2024,primarily due to theimpact of increased sales from pricing(a

245、pproximately 60 basis points).Store operating expenses as a percentage of total net revenues increased 20 basis points for the first two quarters of fiscal 2024.Store operating expenses as apercentage of company-operated stores revenue decreased 10 basis points,primarily due to in-store operational

246、efficiencies(approximately 210 basis points),partially offset by increased investments in store partner wages and benefits(approximately 150 basis points),and increased promotional activity(approximately 50 basis points).Other operating expenses increased$28 million,primarily due to support costs fo

247、r our growing licensed markets.Depreciation and amortization expenses as a percentage of total net revenues increased 30 basis points,primarily due to deleverage.General and administrative expenses increased$101 million,primarily due to incremental investments in technology($52 million),investments

248、in partnerwages and benefits($48 million),and certain proxy solicitation and advisory services costs($30 million).These increases were partially offset by the lappingof a donation to the Starbucks Foundation made in the second quarter of fiscal 2023($15 million).Gain from sale of assets includes the

249、 sale of our Seattles Best Coffee Brand to Nestl in the second quarter of fiscal 2023.Income from equity investees increased$15 million,primarily due to higher income from our North American Coffee Partnership joint venture.The combination of these changes resulted in an overall decrease in operatin

250、g margin of 40 basis points for the first two quarters of fiscal 2024.32Table of ContentsOther Income and Expenses Quarter EndedTwo Quarters EndedMar 31,2024Apr 2,2023$ChangeMar 31,2024Apr 2,2023Mar 31,2024Apr 2,2023$ChangeMar 31,2024Apr 2,2023As a%of TotalNet RevenuesAs a%of TotalNet RevenuesOperat

251、ing income$1,098.9$1,327.5$(228.6)12.8%15.2%$2,584.3$2,580.7$3.6 14.4%14.8%Interest income and other,net34.1 18.4 15.7 0.4 0.2 67.9 30.0 37.9 0.4 0.2 Interest expense(140.6)(136.3)(4.3)(1.6)(1.6)(280.7)(266.0)(14.7)(1.6)(1.5)Earnings before incometaxes992.4 1,209.6(217.2)11.6 13.9 2,371.5 2,344.7 26

252、.8 13.2 13.4 Income tax expense219.9 301.3(81.4)2.6 3.5 574.6 581.1(6.5)3.2 3.3 Net earnings includingnoncontrolling interests772.5 908.3(135.8)9.0 10.4 1,796.9 1,763.6 33.3 10.0 10.1 Net earningsattributable tononcontrolling interests0.1 0.1 0.0 0.1 0.1 0.0 Net earningsattributable toStarbucks$772.

253、4$908.3$(135.9)9.0%10.4%$1,796.8$1,763.6$33.2 10.0%10.1%Effective tax rate includingnoncontrolling interests22.2%24.9%24.2%24.8%For the quarter ended March 31,2024 compared with the quarter ended April 2,2023Interest income and other,net increased$16 million and interest expense increased$4 million,

254、both primarily due to higher interest rates in the current year.The effective tax rate for the quarter ended March 31,2024 was 22.2%compared to 24.9%for the same period in fiscal 2023.The decrease was primarily dueto electing an alternative tax approach in a certain foreign jurisdiction that resulte

255、d in a tax benefit in the second quarter of fiscal 2024(approximately 300 basispoints).For the two quarters ended March 31,2024 compared with the two quarters ended April 2,2023Interest income and other,net increased$38 million and interest expense increased$15 million,both primarily due to higher i

256、nterest rates in the current year.The effective tax rate for the first two quarters ended March 31,2024 was 24.2%compared to 24.8%for the same period in fiscal 2023.The decrease was dueto electing an alternative tax approach in a certain foreign jurisdiction that resulted in a tax benefit in the sec

257、ond quarter of fiscal 2024(approximately 130 basispoints),partially offset by the accrual of foreign withholding taxes related to the current year earnings of certain foreign subsidiaries(approximately 60 basispoints).33Table of ContentsSegment InformationResults of operations by segment(in millions

258、):North America Quarter EndedTwo Quarters EndedMar 31,2024Apr 2,2023$ChangeMar 31,2024Apr 2,2023Mar 31,2024Apr 2,2023$ChangeMar 31,2024Apr 2,2023As a%of North AmericaTotal Net RevenuesAs a%of North AmericaTotal Net RevenuesNet revenues:Company-operatedstores$5,724.5$5,742.7$(18.2)89.7%90.0%$12,105.7

259、$11,613.2$492.5 89.7%89.8%Licensed stores654.8 637.4 17.4 10.3 10.0 1,392.7 1,317.4 75.3 10.3 10.2 Other0.7 0.5 0.2 0.0 0.0 2.3 1.2 1.1 0.0 0.0 Total net revenues6,380.0 6,380.6(0.6)100.0 100.0 13,500.7 12,931.8 568.9 100.0 100.0 Product anddistribution costs1,767.7 1,821.7(54.0)27.7 28.6 3,791.6 3,

260、739.3 52.3 28.1 28.9 Store operatingexpenses3,037.4 2,951.6 85.8 47.6 46.3 6,185.1 5,983.0 202.1 45.8 46.3 Other operatingexpenses67.1 63.4 3.7 1.1 1.0 144.5 128.9 15.6 1.1 1.0 Depreciation andamortization expenses257.1 226.3 30.8 4.0 3.5 507.5 443.1 64.4 3.8 3.4 General andadministrativeexpenses102

261、.4 91.2 11.2 1.6 1.4 202.9 193.5 9.4 1.5 1.5 Restructuring andimpairments 8.5(8.5)0.1 13.6(13.6)0.1 Total operatingexpenses5,231.7 5,162.7 69.0 82.0 80.9 10,831.6 10,501.4 330.2 80.2 81.2 Operating income$1,148.3$1,217.9$(69.6)18.0%19.1%$2,669.1$2,430.4$238.7 19.8%18.8%Store operating expenses as a%

262、ofcompany-operated stores revenue53.1%51.4%51.1%51.5%For the quarter ended March 31,2024 compared with the quarter ended April 2,2023RevenuesNorth America total net revenues for the second quarter of fiscal 2024 were nearly flat when compared to the prior year period,primarily due to a 3%decreasein

263、comparable store sales($178 million)driven by a 7%decrease in comparable transactions,partially offset by a 4%increase in average ticket,primarily dueto annualization of pricing and a mix shift to cold beverages.This comparable store sales decrease was partially offset by performance of net new comp

264、any-operated store openings over the past 12 months($160 million),as well as higher product and equipment sales to,and royalty revenues from,our licensees($14 million).Operating MarginNorth America operating income for the second quarter of fiscal 2024 decreased 6%to$1.1 billion,compared to$1.2 bill

265、ion in the second quarter of fiscal2023.Operating margin decreased 110 basis points to 18.0%,primarily due to deleverage(approximately 190 basis points),increased investments in storepartner wages and benefits(approximately 140 basis points),and increased promotional activity(approximately 90 basis

266、points),partially offset by strategicpricing(approximately 200 basis points)and in-store operational efficiencies(approximately 180 basis points).34Table of ContentsFor the two quarters ended March 31,2024 compared with the two quarters ended April 2,2023RevenuesNorth America total net revenues for

267、the first two quarters of fiscal 2024 increased$569 million,or 4%,primarily due to net new company-operated storeopenings over the past 12 months($382 million)and a 1%increase in comparable store sales($110 million)driven by a 4%increase in average ticket,primarily due to annualization of pricing.Th

268、is was partially offset by a 3%decrease in comparable transactions.Also contributing to these increases werehigher product and equipment sales to,and royalty revenues from,our licensees($63 million).Operating MarginNorth America operating income for the first two quarters of fiscal 2024 increased 10

269、%to$2.7 billion,compared to$2.4 billion in the first two quarters offiscal 2023.Operating margin increased 100 basis points to 19.8%,primarily driven by in-store operational efficiencies(approximately 220 basis points)andstrategic pricing(approximately 180 basis points),partially offset by increased

270、 investments in store partner wages and benefits(approximately 130 basispoints)and increased promotional activity(approximately 70 basis points).International Quarter EndedTwo Quarters Ended Mar 31,2024Apr 2,2023$ChangeMar 31,2024Apr 2,2023Mar 31,2024Apr 2,2023$ChangeMar 31,2024Apr 2,2023As a%of Int

271、ernationalTotal Net RevenuesAs a%of InternationalTotal Net RevenuesNet revenues:Company-operatedstores$1,328.1$1,399.6$(71.5)75.6%75.5%$2,702.2$2,612.5$89.7 75.0%73.9%Licensed stores399.7 432.1(32.4)22.7 23.3 853.9 871.6(17.7)23.7 24.7 Other29.5 23.1 6.4 1.7 1.2 47.5 50.8(3.3)1.3 1.4 Total net reven

272、ues1,757.3 1,854.8(97.5)100.0 100.0 3,603.6 3,534.9 68.7 100.0 100.0 Product anddistribution costs619.8 632.9(13.1)35.3 34.1 1,286.4 1,226.5 59.9 35.7 34.7 Store operatingexpenses686.7 684.4 2.3 39.1 36.9 1,390.5 1,318.3 72.2 38.6 37.3 Other operatingexpenses50.0 49.9 0.1 2.8 2.7 110.1 100.6 9.5 3.1

273、 2.8 Depreciation andamortization expenses84.3 86.3(2.0)4.8 4.7 168.3 167.7 0.6 4.7 4.7 General andadministrativeexpenses82.9 87.4(4.5)4.7 4.7 173.3 167.9 5.4 4.8 4.7 Total operatingexpenses1,523.7 1,540.9(17.2)86.7 83.1 3,128.6 2,981.0 147.6 86.8 84.3 Income from equityinvestees0.2 0.8(0.6)0.0 0.0

274、0.3 1.2(0.9)0.0 0.0 Operating income$233.8$314.7$(80.9)13.3%17.0%$475.3$555.1$(79.8)13.2%15.7%Store operating expenses as a%of company-operated stores revenue51.7%48.9%51.5%50.5%For the quarter ended March 31,2024 compared with the quarter ended April 2,2023RevenuesInternational total net revenues f

275、or the second quarter of fiscal 2024 decreased$98 million,or 5%,primarily due to unfavorable foreign currency translationimpacts($102 million),as well as a 6%decline in comparable store sales($75 million),driven by a 3%decline in comparable transactions and a 3%decline inaverage ticket.Also contribu

276、ting to the decline in international total net revenues were lower product and equipment sales to,and royalty revenues from,ourlicensees($25 million),largely driven35Table of Contentsby disruptions due to multiple international conflicts.These decreases were partially offset by 974 net new company-o

277、perated store openings,or a 12%increase,over the past 12 months($95 million).Operating MarginInternational operating income for the second quarter of fiscal 2024 decreased to$234 million,compared to$315 million in the second quarter of fiscal 2023.Operating margin decreased 370 basis points to 13.3%

278、,primarily due to increased promotional activity(approximately 220 basis points),increased investmentsin store partner wages and benefits(approximately 130 basis points),and sales mix shift(approximately 90 basis points),partially offset by pricing in certainmarkets(approximately 100 basis points).F

279、or the two quarters ended March 31,2024 compared with the two quarters ended April 2,2023RevenuesInternational total net revenues for the first two quarters of fiscal 2024 increased$69 million,or 2%,primarily due to 974 net new company-operated storeopenings,or a 12%increase,over the past 12 months(

280、$199 million).This increase was partially offset by unfavorable foreign currency translation impacts($130 million).Operating MarginInternational operating income for the first two quarters of fiscal 2024 decreased to$475 million,compared to$555 million for the same period in fiscal 2023.Operating ma

281、rgin decreased 250 basis points to 13.2%,primarily due to increased promotional activity(approximately 190 basis points),increased investmentsin store partner wages and benefits(approximately 120 basis points),and sales mix shift(approximately 80 basis points).These decreases were partially offsetby

282、 leverage(approximately 120 basis points)and pricing in certain markets(approximately 70 basis points).Channel Development Quarter EndedTwo Quarters Ended Mar 31,2024Apr 2,2023$ChangeMar 31,2024Apr 2,2023Mar 31,2024Apr 2,2023$ChangeMar 31,2024Apr 2,2023As a%of ChannelDevelopmentTotal Net RevenuesAs

283、a%of ChannelDevelopmentTotal Net RevenuesNet revenues$418.2$480.7$(62.5)$866.2$958.9$(92.7)Product anddistribution costs252.6 345.6(93.0)60.4%71.9%531.5 639.8(108.3)61.4%66.7%Other operatingexpenses15.2 12.8 2.4 3.6 2.7 28.0 25.8 2.2 3.2 2.7 Depreciation andamortization expenses 0.1(0.1)0.0 General

284、andadministrativeexpenses1.9 2.1(0.2)0.5 0.4 4.2 4.1 0.1 0.5 0.4 Total operatingexpenses269.7 360.5(90.8)64.5 75.0 563.7 669.8(106.1)65.1 69.9 Income from equityinvestees67.8 50.6 17.2 16.2 10.5 123.5 108.0 15.5 14.3 11.3 Gain from sale ofassets 91.3(91.3)19.0 91.3(91.3)9.5 Operatingincome$216.3$262

285、.1$(45.8)51.7%54.5%$426.0$488.4$(62.4)49.2%50.9%For the quarter ended March 31,2024 compared with the quarter ended April 2,2023RevenuesChannel Development total net revenues for the second quarter of fiscal 2024 decreased$63 million,or 13%,primarily due to a decline in revenue in theGlobal Coffee A

286、lliance($59 million),following the sale of our Seattles Best Coffee brand to Nestl in the second quarter of fiscal 2023 as well as productSKU optimization.36Table of ContentsOperating MarginChannel Development operating income for the second quarter of fiscal 2024 decreased 17%to$216 million,compare

287、d to$262 million in the second quarterof fiscal 2023.Operating margin decreased 280 basis points to 51.7%,primarily driven by lapping the gain from the sale of our Seattles Best Coffee brand inthe second quarter of fiscal 2023(approximately 1,900 basis points),partially offset by growth in our North

288、 American Coffee Partnership joint venture income(approximately 570 basis points),mix shift(approximately 510 basis points),lapping impairment charges against certain manufacturing assets in the secondquarter of fiscal 2023(approximately 350 basis points),and lower product costs related to the Globa

289、l Coffee Alliance(approximately 240 basis points).For the two quarters ended March 31,2024 compared with the two quarters ended April 2,2023RevenuesChannel Development total net revenues for the first two quarters of fiscal 2024 decreased$93 million,or 10%,primarily due to a decline in revenue in th

290、eGlobal Coffee Alliance($78 million),primarily following the sale of our Seattles Best Coffee brand to Nestl in the second quarter of fiscal 2023 as well asproduct SKU optimization,and lower revenue in our global ready-to-drink business($21 million).Operating MarginChannel Development operating inco

291、me for the first two quarters of fiscal 2024 decreased 13%to$426 million,compared to$488 million for the same periodin fiscal 2023.Operating margin decreased 170 basis points to 49.2%,primarily due to lapping the gain from the sale of our Seattles Best Coffee brand in thesecond quarter of fiscal 202

292、3(approximately 950 basis points),partially offset by mix shift(approximately 440 basis points)and growth in our North AmericanCoffee Partnership joint venture income(approximately 300 basis points).Corporate and Other Quarter EndedTwo Quarters EndedMar 31,2024Apr 2,2023$Change%ChangeMar 31,2024Apr

293、2,2023$Change%ChangeNet revenues:Other$7.5$3.7$3.8 102.7%$17.8$8.2$9.6 117.1%Total net revenues7.5 3.7 3.8 102.7 17.8 8.2 9.6 117.1 Product and distribution costs8.6 1.5 7.1 473.3 19.7 6.3 13.4 212.7 Other operating expenses0.5 0.1 0.4 400.0 0.6 0.1 0.5 500.0 Depreciation and amortization expenses30

294、.5 29.3 1.2 4.1 61.4 58.1 3.3 5.7 General and administrative expenses467.4 439.7 27.7 6.3 922.2 835.8 86.4 10.3 Restructuring and impairments 0.3(0.3)nm 1.1(1.1)nmTotal operating expenses507.0 470.9 36.1 7.7 1,003.9 901.4 102.5 11.4 Operating loss$(499.5)$(467.2)$(32.3)6.9%$(986.1)$(893.2)$(92.9)10.

295、4%Corporate and Other primarily consists of our unallocated corporate expenses.Unallocated corporate expenses include corporate administrative functions thatsupport the operating segments but are not specifically attributable to or managed by any segment and are not included in the reported financia

296、l results of theoperating segments.For the quarter ended March 31,2024 compared with the quarter ended April 2,2023Corporate and Other operating loss increased by 7%to$500 million for the second quarter of fiscal 2024 compared to$467 million for the second quarter offiscal 2023.This increase was pri

297、marily driven by certain proxy solicitation and advisory services costs($30 million)and incremental investments intechnology in support of Reinvention($22 million).These increases were partially offset by the lapping of a donation to the Starbucks Foundation made in thesecond quarter of fiscal 2023(

298、$15 million).For the two quarters ended March 31,2024 compared with the two quarters ended April 2,2023Corporate and Other operating loss increased to$986 million for the first two quarters of fiscal 2024,or 10%,compared to$893 million for the same period infiscal 2023.This increase was primarily dr

299、iven by incremental investments in technology in support of Reinvention($52 million),certain proxy solicitationand advisory services costs($30 million),and investments in partner wages and benefits($28 million).These increases were partially offset by the lapping of adonation to the Starbucks Founda

300、tion made in the second quarter of fiscal 2023($15 million).37Table of ContentsQuarterly Store DataOur store data for the periods presented is as follows:Net stores opened/(closed)and transferred during the period Quarter EndedTwo Quarters EndedStores open as ofMar 31,2024Apr 2,2023Mar 31,2024Apr 2,

301、2023Mar 31,2024Apr 2,2023North AmericaCompany-operated stores112 91 199 131 10,827 10,347 Licensed stores22 10 56 56 7,238 7,135 Total North America134 101 255 187 18,065 17,482 InternationalCompany-operated stores132 174 318 271 9,282 8,308 Licensed stores98 189 340 465 11,604 10,844 Total Internat

302、ional230 363 658 736 20,886 19,152 Total Company364 464 913 923 38,951 36,634 Financial Condition,Liquidity and Capital ResourcesCash and Investment OverviewOur cash and investments were$3.4 billion as of March 31,2024 and$4.2 billion as of October 1,2023.We actively manage our cash and investments

303、in orderto internally fund operating needs,make scheduled interest and principal payments on our borrowings,fund acquisitions,and return cash to shareholdersthrough common stock cash dividend payments and share repurchases.Our investment portfolio primarily includes highly liquid available-for-sale

304、securities,including corporate debt securities,government treasury securities(domestic and foreign),and commercial paper,as well as principal-protected structureddeposits.As of March 31,2024,approximately$2.0 billion of cash and short-term investments were held in foreign subsidiaries.Borrowing Capa

305、cityRevolving Credit FacilityOur$3.0 billion unsecured five-year revolving credit facility(the“2021 credit facility”),of which$150.0 million may be used for issuances of letters of credit,is currently set to mature on September 16,2026.The 2021 credit facility is available for working capital,capita

306、l expenditures,and other corporate purposes,including acquisitions and share repurchases.We have the option,subject to negotiation and agreement with the related banks,to increase the maximumcommitment amount by an additional$1.0 billion.Borrowings under the 2021 credit facility,which was most recen

307、tly amended in April 2023,will bear interest at a variable rate based on Term SOFR,and,forU.S.dollar-denominated loans under certain circumstances,a Base Rate(as defined in the 2021 credit facility),in each case plus an applicable margin.Theapplicable margin is based on the Companys long-term credit

308、 ratings assigned by the Moodys and Standard&Poors rating agencies.The“Base Rate”is thehighest of(i)the Federal Funds Rate(as defined in the 2021 credit facility)plus 0.500%,(ii)Bank of Americas prime rate,and(iii)Term SOFR plus 1.000%.Term SOFR means the forward-looking SOFR term rate administrated

309、 by the Chicago Mercantile Exchange plus a SOFR Adjustment of 0.100%.The 2021 credit facility contains provisions requiring us to maintain compliance with certain covenants,including a minimum fixed charge coverage ratio,which measures our ability to cover financing expenses.As of March 31,2024,we w

310、ere in compliance with all applicable covenants.No amounts wereoutstanding under our 2021 credit facility as of March 31,2024 or October 1,2023.Commercial PaperUnder our commercial paper program,we may issue unsecured commercial paper notes up to a maximum aggregate amount outstanding at any time of

311、$3.0billion,with individual maturities that may vary but not exceed 397 days from the date of issue.Amounts outstanding under the commercial paper program arerequired to be backstopped by available commitments under our 2021 credit facility.The proceeds from borrowings under our commercial paper pro

312、gram maybe used for working capital needs,capital expenditures,and other corporate purposes,including,but not limited to,business expansion,payment of cashdividends on our common stock,and share repurchases.No amounts were outstanding under our commercial paper program as38Table of Contentsof March

313、31,2024 and October 1,2023.Our total available contractual borrowing capacity for general corporate purposes was$3.0 billion as of the end of oursecond quarter of fiscal 2024.Credit Facilities in JapanAdditionally,we hold the following Japanese yen-denominated credit facilities that are available fo

314、r working capital needs and capital expenditures within ourJapanese market.A 5.0 billion,or$33.0 million,credit facility is currently set to mature on December 30,2024.Borrowings under this credit facility are subject toterms defined within the facility and will bear interest at a variable rate base

315、d on TIBOR plus an applicable margin of 0.400%.A 10.0 billion,or$66.1 million,credit facility is currently set to mature on March 27,2025.Borrowings under this credit facility are subject to termsdefined within the facility and will bear interest at a variable rate based on TIBOR plus an applicable

316、margin of 0.300%.As of March 31,2024,we had 5.0 billion,or$33.0 million,of borrowings outstanding under these credit facilities.As of October 1,2023,we had 5.0 billion,or$33.5 million,of borrowings outstanding under these credit facilities.See Note 8,Debt,to the consolidated financial statements inc

317、luded in Item 1 of Part I of this 10-Q for details of the components of our long-term debt.Our ability to incur new liens and conduct sale and leaseback transactions on certain material properties is subject to compliance with terms of the indenturesunder which the long-term notes were issued.As of

318、March 31,2024,we were in compliance with all applicable covenants.Use of CashWe expect to use our available cash and investments,including,but not limited to,additional potential future borrowings under the credit facilities,commercialpaper program,and the issuance of debt to support and invest in o

319、ur core businesses,including investing in new ways to serve our customers and supportingour store partners,repaying maturing debts,returning cash to shareholders through common stock cash dividend payments and discretionary share repurchases,and investing in new business opportunities related to our

320、 core and developing businesses.Furthermore,we may use our available cash resources to makeproportionate capital contributions to our investees.We may also seek strategic acquisitions to leverage existing capabilities and further build our business.Acquisitions may include increasing our ownership i

321、nterests in our investees.Any decisions to increase such ownership interests will be driven by valuationand fit with our ownership strategy.We believe that net future cash flows generated from operations and existing cash and investments both domestically and internationally,combined with ourability

322、 to leverage our balance sheet through the issuance of debt,will be sufficient to finance capital requirements for our core businesses as well asshareholder distributions for at least the next 12 months.We are currently not aware of any trends or demands,commitments,events,or uncertainties that will

323、result in,or that are reasonably likely to result in,our liquidity increasing or decreasing in any material way that will impact our capital needs during or beyondthe next 12 months.We have borrowed funds and continue to believe we have the ability to do so at reasonable interest rates;however,addit

324、ional borrowingswould result in increased interest expense in the future.In this regard,we may incur additional debt,within targeted levels,as part of our plans to fund ourcapital programs,including cash returns to shareholders through future dividends and discretionary share repurchases,refinancing

325、 debt maturities,as well asinvesting in new business opportunities.If necessary,we may pursue additional sources of financing,including both short-term and long-term borrowings anddebt issuances.We regularly review our cash positions and our determination of partial indefinite reinvestment of foreig

326、n earnings.In the event we determine that all oranother portion of such foreign earnings are no longer indefinitely reinvested,we may be subject to additional foreign withholding taxes,which could bematerial.Any foreign earnings that are not indefinitely reinvested may be repatriated at managements

327、discretion.In anticipation of repatriation of current yearearnings of certain foreign subsidiaries,we accrued approximately$11 million for foreign withholding taxes during the first two quarters of fiscal year 2024.During the second quarter of fiscal 2024,our Board of Directors approved a quarterly

328、cash dividend to shareholders of$0.57 per share to be paid on May 31,2024 to shareholders of record as of the close of business on May 17,2024.During the two quarters ended March 31,2024,we repurchased 12.8 million shares of common stock for$1,250.1 million on the open market.As of March 31,2024,29.

329、8 million shares remained available for repurchase under current authorizations.Other than normal operating expenses,cash requirements for the remainder of fiscal 2024 are expected to consist primarily of capital expenditures forinvestments in our new and existing stores,our supply chain,and corpora

330、te facilities.Total capital expenditures for fiscal 2024 are expected to beapproximately$3.0 billion.39Table of ContentsIn the MD&A included in the 10-K,we disclosed that we had$33.9 billion of current and long-term material cash requirements as of October 1,2023.Therehave been no material changes t

331、o our material cash requirements during the period covered by this 10-Q outside of the normal course of our business.Cash FlowsNet cash provided by operating activities was$2.9 billion for the first two quarters of fiscal 2024,compared to$2.4 billion for the same period in fiscal 2023.The change was

332、 primarily due to an increase in net cash provided by changes in operating assets and liabilities,an increase in non-cash lease costs,and lappingthe gain on sale of assets from the prior year sale of Seattles Best Coffee brand to Nestl.Net cash used in investing activities totaled$1.3 billion for th

333、e first two quarters of fiscal 2024,compared to$907.0 million for the same period in fiscal 2023.The change was primarily due to an increase in capital expenditures,purchases of investments,and lapping the proceeds from sale of assets from the prior yearsale of Seattles Best Coffee brand to Nestl,partially offset by an increase in maturities and calls of investments.Net cash used in financing acti