FY18

1. In August 2018, we issued long-term debt in an underwritten registered public offering,

which consisted of $1.25 billion of 7- year 3.800% Senior Notes (the “2025 notes”) due
August 2025, $750 million of 10-year 4.000% Senior Notes (the “2028 notes”) due
November 2028 and $1 billion of 30-year 4.500% Senior Notes (the “2048 notes”) due
November 2048.

In February 2018, we issued long-term debt in an underwritten registered public offering,

which consisted of $1 billion of 5- year 3.100% Senior Notes (the “2023 notes”) due March
2023 and $600 million of 10-year 3.500% Senior Notes (the “2028 notes”) due March
2028.

In November 2017, we issued long-term debt in an underwritten registered public

offering, which consisted of $500 million of 3-year 2.200% Senior Notes (the “2020
notes”) due November 2020 and $500 million of 30-year 3.750% Senior Notes (the “2047
notes”) due December 2047.

In March 2017, we issued Japanese yen-denominated long-term debt in an underwritten

registered public offering. The 7- year 0.372% Senior Notes (the “2024 notes”) due March
2024 were issued with a face value of ¥85 billion, all of which has been designated to
hedge the foreign currency exposure of our net investment in Japan.

In May 2016, we issued long-term debt in an underwritten registered public offering,

which consisted of $500 million of 10- year 2.450% Senior Notes (the “2026 notes”) due
June 2026.

In February 2016, we issued long-term debt in an underwritten registered public offering,

which consisted of $500 million of 5- year 2.100% Senior Notes (the “2021 notes”) due
February 2021. In May 2016, we reopened this offering with the same terms and issued
an additional $250 million of Senior Notes (collectively, the “2021 notes”) for an
aggregate amount outstanding of $750 million.

2. As a result of acquiring the remaining interest in our East China joint venture at the end
of the first quarter of fiscal 2018, we began recording 100% of its revenues and expenses
on our consolidated statements of earnings at the beginning of the second quarter of
fiscal 2018. This is in contrast with our previous joint venture model, where we recorded
only revenues and expenses from products sales to and royalties received from East
China, as well as our proportionate share of the joint venture's net profit. The change
from equity method to consolidation method lowered the operating margin of our
Consolidated and CAP segment, primarily due to incremental depreciation and
amortization expenses and lower income from equity investees.

3. Consolidated operating income decreased to $3.9 billion in fiscal 2018 compared to

operating income of $4.1 billion in fiscal 2017. Fiscal 2018 operating margin was 15.7%
 compared to 18.5% in fiscal 2017. Operating margin compression in fiscal 2018 was
primarily driven by food and beverage-related mix shifts, largely in the Americas segment,
the impact of our ownership change in East China at the end of the first quarter of fiscal
2018, higher restructuring and impairment costs and higher salaries and benefits related
to digital platforms, technology infrastructure and innovations. Restructuring and
impairment expenses increased $71 million, primarily due to higher asset impairments
associated with the decision to close certain company-operated stores in the U.S. and
Canada ($23 million), higher goodwill impairment charges associated with our
Switzerland company-operated retail reporting unit ($20 million) and EMEA restructuring
costs, including severance and asset impairments ($18 million).

4. Earnings per share (“EPS”) for fiscal 2018 increased to $3.24, compared to EPS of $1.97 in
fiscal 2017. The increase was primarily driven by the gains from the acquisition of our East
China joint venture and the sale of our Tazo brand. Additionally, the net favorable impact
from the Tax Cuts and Jobs Act (the “Tax Act”) also contributed to the increase.

FY17
1. Sales Growth of FY16-FY17 (5.02%) is lower than Sales Growth of FY15-16 (11.24%) is due
to the absence of the 53rd week sales - $324 million for Company-operated stores, $41
million for Licensed stores, $47 million for CPG, foodservice and other - recorded in 2016
instead of 2017.

Also, there was gain on the sale of 133 Singapore company-operated retail stores to
Maxim's Caterers Limited (PL gain impact of $84 million) in the fourth quarter of fiscal
2017, converting these operations to a fully licensed market, for a total BS impact of
$119.9 million. This gain is non-taxable and impacts Interest income and other.

2. Fiscal year ends on the Sunday closest to September 30. Fiscal year 2016 included 53
weeks, with the 53rd week falling in the fourth fiscal quarter. Fiscal years 2015 and 2014
included 52 weeks.

3. Recognized net impairment charges of $56.1 million, $24.1 million, and $25.8 million in
fiscal 2017, 2016, and 2015, respectively, of which $39.9 million in fiscal 2017 were
restructuring related and recorded in restructuring and impairment expenses.
 Restructuring and impairment charges for fiscal 2017 were $153.5 million and primarily
related to strategic changes in Teavana business including a partial goodwill impairment,
store asset impairments, costs associated with early closure of stores and severance.
Additional amounts incurred related to an impairment of Switzerland retail business and
asset impairments of certain Starbucks® company-operated stores in Canada.

4.

FY15
1. Regarding cashflow, cash provided by operating activities was $3.7 billion for fiscal 2015,
compared to $607.8 million for fiscal 2014 (increase 516.83%). The increase was driven
by lapping the prior year payment of $2.8 billion for the Kraft Foods Global, Inc arbitration
matter.

The litigation charge of $2,784.1 million in fiscal 2013 reflects the charge we recorded as
a result of the conclusion of the arbitration with Kraft. This charge included $2,227.5
million in damages and $556.6 million in estimated interest and attorneys' fees. The $20.2
million litigation credit recorded in fiscal 2014 reflects a reduction to our estimated
prejudgment interest payable associated with the Kraft arbitration as a result of paying
our obligation earlier than anticipated.

2.

FY14
1. Cash flows from operations were $607.8 million in fiscal 2014 compared to $2.9 billion in
fiscal 2013 (decrease 79.10%). The decline in fiscal 2014 was driven by the payment of
$2.8 billion during the year for the Kraft arbitration matter. This was partially offset by
cash provided by operating activities of $3.4 billion resulting from strong earnings and
favorable changes in working capital accounts in the current year.

2. Earnings per share for fiscal 2014 increased to $2.71, compared to EPS of $0.01 in fiscal
2013 (increase of 26,900%), primarily due to lapping the Kraft litigation charge, which
reduced EPS by $2.25 per share in fiscal 2013. The remaining increase was primarily due
to the improved sales leverage and lower commodity costs, as well as a gain on the sale
of our equity interest in our Malaysia joint venture.

3.

FY13
1. On December 31, 2012, we acquired 100% of the outstanding shares of Teavana Holdings,
Inc. (“Teavana”), a specialty retailer of premium loose-leaf teas, authentic artisanal
teawares and other tea-related merchandise, to elevate our tea offerings as well as
expand our domestic and global tea footprint. We acquired Teavana for $615.8 million in
cash. Of the total cash paid, $12.2 million was excluded from the purchase price allocation
 below as it represents contingent consideration receivable. At closing, we also repaid
$35.2 million for long term debt outstanding on Teavana's balance sheet, which was
recognized separately from the business combination.
2. In September 2013, we issued $750 million of 10-year 3.85% Senior Notes ("the 2013
notes") due October 2023, in an underwritten registered public offering, leading to an
increase in long-term debt from $549.6 million in 2012 to $1,299.4 million (136.43%).

In August 2007, we issued $550 million of 6.25% Senior Notes (“the 2007 notes”) due in
August 2017, in an underwritten registered public offering.

3. Consolidated operating income decreased to $(0.3) billion in fiscal 2013 compared to $2.0
billion in fiscal 2012 and fiscal 2013 operating margin was (2.2)% compared to 15.0% in
fiscal 2012. The declines were due to the litigation charge with Kraft Foods Global, Inc.
("Kraft") on November 12, 2013.

4.

FY12
1. On July 3, 2012, we acquired 100% ownership interest in Bay Bread, LLC and its La
Boulange bakery brand (collectively “La Boulange”), to elevate our core food offerings
and build a premium, artisanal bakery brand. We acquired La Boulange for a purchase
price of approximately $100 million in cash.

FY11
1. Inventory levels vary due to seasonality, commodity market supply and price fluctuations.

FY09
1. Starbucks has taken a number of actions in fiscal 2008 and 2009 to rationalize its store
portfolio. These actions have included plans (announced in July 2008 and January 2009)
to close a total of approximately 800 Company-operated stores in the US, restructure its
Australia market, and close approximately 100 additional Company-operated stores
internationally. As of the end of fiscal 2009, nearly all of the approximately 800 US stores,
61 stores in Australia and 41 stores in other International markets have been closed. The
remaining International closures are expected to be completed by the end of fiscal 2010.

This results in restructuring charge of $332.4 million in 2009. Restructuring charges

include lease exit and related costs associated with the actions to rationalize the
Company’s global store portfolio and reduce the global cost structure.

2.