SBUX » Topics » Note 12: Leases

This excerpt taken from the SBUX 10-K filed Dec 14, 2006.
Note 12: Leases
 
Rental expense under operating lease agreements was as follows (in thousands):
 
                         
FISCAL YEAR ENDED   Oct 1, 2006     Oct 2, 2005     Oct 3, 2004  
 
 
Minimum rentals — retail stores
  $ 406,329     $ 340,474     $ 285,250  
Minimum rentals — other
    52,367       43,532       28,108  
Contingent rentals
    40,113       32,910       24,638  
 
 
Total
  $ 498,809     $ 416,916     $ 337,996  
 
 
 
STARBUCKS CORPORATION, FORM 10-K 57


Table of Contents

Minimum future rental payments under noncancelable operating lease obligations as of October 1, 2006, are as follows (in thousands):
 
         
FISCAL YEAR ENDING      
 
 
2007
  $ 531,634  
2008
    520,553  
2009
    492,759  
2010
    452,859  
2011
    408,412  
Thereafter
    1,486,721  
 
 
Total minimum lease payments
  $ 3,892,938  
 
 
 
The Company has subleases related to certain of its operating lease agreements. During fiscal 2006, 2005 and 2004, the Company recognized sublease income of $5.7 million, $4.3 million and $4.0 million, respectively.
 
The Company had capital lease obligations of $4.1 million and $2.6 million as of October 1, 2006 and October 2, 2005, respectively. As of October 1, 2006, the current portion of the total obligation was $1.7 million and was included in “Other accrued expenses” and the remaining long-term portion of $2.4 million was included in “Other long-term liabilities” on the consolidated balance sheet. Capital lease obligations expire at various dates, with the latest maturity in 2020. Assets held under capital leases are included in “Property, plant and equipment, net,” on the consolidated balance sheets.
 
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