Fiscal 2016 Financial Highlights

Starbucks Coffee Company

See the following page for a reconciliation of GAAP to non-GAAP measures.

Net Revenues (in billions) Comparable Store Sales Growth*

(Company-Operated Stores Open 13 Months or Longer)
GAAP Non-GAAP

7% 7% 7%
$21.3 $20.9
$19.2 6%
$16.4 5%
$14.9
$13.3

FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16

$4,172 $4,095
Operating Income/(Loss) (in millions) Operating Margin
$3,601 $3,656
19.6% 19.6%
GAAP Non-GAAP
$3,081 $3,063 GAAP Non-GAAP 18.7% 18.6% 18.8% 19.1%
16.5%
$2,459 15.0%
$1,997

($325)
(2.2%)
FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16

Diluted Earnings Per Share** Operating Cash Flow & Capital Expenditures (in millions) $4,575
$1.90 $1.85
GAAP Non-GAAP
$1.82 GAAP Operating Cash Flow
$3,749
$1.58 Non-GAAP Operating Cash Flow
$3,372
Capital Expenditures
$1.35 $1.33 $2,908
$1.10
$0.90
$1,750
$1,304 $1,440
$1,151 $1,161
$856
$608

$0.01

FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16

*Comparable store sales exclude the effect of fluctuations in foreign currency exchange rates.
** Adjusted for two-for-one stock split announced March 19, 2015.
$ in millions, except per share data
NON-GAAP REVENUE RECONCILIATION FY12 FY13 FY14 FY15 FY16
GAAP $ 21,315.9
Impact of the extra week $ (412.4)
Non-GAAP $ 20,903.5

Non-GAAP OPERATING INCOME RECONCILIATION FY12 FY13 FY14 FY15 FY16

GAAP $ 1,997.4
GAAP $ (325.4)
Litigation charge resulting from Kraft Arbitration 2,784.1
Non-GAAP $ 2,458.7
GAAP $ 3,081.1
Litigation credit resulting from Kraft Arbitration (20.2)
(1)
Costs from transactions in Q4 2014 2.4
Non-GAAP $ 3,063.3
GAAP $ 3,601.0
(2)
Starbucks Japan acquisition-related items - other 54.6
Non-GAAP $ 3,655.6
GAAP $ 4,171.9
(2)
Starbucks Japan acquisition-related items - other 57.4
Costs incurred on sale of Germany retail operations (3) 2.8
Impact of the extra week (137.3)
Non-GAAP $ 4,094.8

(1)
Includes a portion of the transaction costs incurred in Q4 FY14 related to the acquisition of Starbucks Japan and costs
related to the sale of our Australia retail operations in Q4 FY14.

(2)
Includes ongoing amortization expense of acquired intangible assets and transaction and integration costs, such as incremental
information technology ("IT") and compensation-related costs associated with the acquisition.

(3)
Includes costs incurred in Q3 FY16 associated with the sale of Germany retail operations.

Non-GAAP OPERATING MARGIN % RECONCILIATION FY12 FY13 FY14 FY15 FY16

GAAP 15.0%
GAAP (2.2)%
Litigation charge resulting from Kraft Arbitration 18.7%
Non-GAAP 16.5%
GAAP 18.7%
Litigation credit resulting from Kraft Arbitration (0.1%)
(1)
Costs from transactions in Q4 2014 0.0%
Non-GAAP 18.6%
GAAP 18.8%
Starbucks Japan acquisition-related items - other (2) 0.3%
Non-GAAP 19.1%
GAAP 19.6%
(2)
Starbucks Japan acquisition-related items - other 0.3%
(3)
Costs incurred on sale of Germany retail operations 0.0%
Impact of the extra week (0.3%)
Non-GAAP 19.6%

(1)
Includes a portion of the transaction costs incurred in Q4 FY14 related to the acquisition of Starbucks Japan and costs
related to the sale of our Australia retail operations in Q4 FY14.

(2)
Includes ongoing amortization expense of acquired intangible assets and transaction and integration costs, such as incremental
information technology ("IT") and compensation-related costs associated with the acquisition.

(3)
Includes costs incurred in Q3 FY16 associated with the sale of Germany retail operations.

Non-GAAP EPS RECONCILIATION FY12 FY13 FY14 FY15 FY16

GAAP $ 0.90
GAAP $ 0.01
Litigation charge resulting from Kraft Arbitration 1.83
Gain on sale of equity in Mexico joint venture (0.02)
Gain on sale of equity in Chile and Argentina joint ventures (0.03)
Income tax effect on Non-GAAP adjustments (1) (0.68)
Non-GAAP $ 1.10
GAAP $ 1.35
Litigation credit resulting from Kraft Arbitration (0.01)
(2)
Net benefit from transactions in Q4 2014 (0.04)
(1)
Income tax effect on Non-GAAP adjustments 0.03
Non-GAAP $ 1.33
GAAP $1.82
(3)
Starbucks Japan acquisition-related items - gain (0.26)
(4)
Starbucks Japan acquisition-related items - other 0.04
(5)
Debt extinguishment-related items 0.04
(1)
Income tax effect on Non-GAAP adjustments (0.02)
Other Tax Matters (6) (0.04)
Non-GAAP $1.58
GAAP $1.90
Starbucks Japan acquisition-related items - other (4) 0.04
Sale of Germany retail operations (7) -
(1)
Income tax effect on Non-GAAP adjustments (0.01)
Other tax matters (6) (0.01)
Impact of the extra week (0.09)
Income tax effect on the impact of the extra week 0.03
Non-GAAP $1.85

(1)
Income tax effect on non-GAAP adjustments was determined based on the nature of the underlying items and their relevant
jurisdictional tax rates.

(2)
The net benefit from transactions in Q4 FY14 relates primarily to a $0.05 pre-tax gain on the sale of our Malaysia equity method
investment, partially offset by a loss on the sale of our Australia retail operations and transaction costs incurred in Q4 FY14
related to the acquisition of Starbucks Japan.

(3)
Gain represents the fair value adjustment of Starbucks preexisting 39.5% ownership interest in Starbucks Japan upon
acquisition.

(4)
Includes ongoing amortization expense of acquired intangible assets and transaction and integration costs.

(5)
Represents the loss on extinguishment of debt ($61.1M), which is comprised of the cost of the optional redemption provision,
unamortized debt issuance costs, and unamortized discount associated with the $550 million of 6.250% 2017 Senior Notes
redeemed in Q4 FY15, as well as the related unamortized interest rate hedge loss ($2.0M), which was recorded in interest expense.

(6)
Other tax matters include the incremental benefit from additional domestic manufacturing deductions claimed in our U.S.
consolidated tax returns pertaining to periods prior to FY16 and FY15, respectively.

(7)
The sale of Germany retail operations is net of certain costs associated with the transfer of these stores to licensed stores.

Non-GAAP OPERATING CASH FLOW RECONCILIATION FY14

GAAP $ 607.8
Kraft arbitration settlement cash payment 2,763.9
Non-GAAP $ 3,371.7