STARBUCKS CORPSBUX
STARBUCKS CORP Fair Value Disclosure
Fair Value Measurements
Assets and Liabilities Measured at Fair Value on a Recurring Basis (in millions):
| Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||
| Balance at September 28, 2025 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Cash and cash equivalents | $ | 3,219.8 | $ | 3,219.8 | $ | — | $ | — | |||||||||||||||
| Short-term investments: | |||||||||||||||||||||||
Available-for-sale debt securities: | |||||||||||||||||||||||
| Corporate debt securities | 67.8 | — | 55.9 | 11.9 | |||||||||||||||||||
| Mortgage and other asset-backed securities | 0.4 | — | 0.4 | — | |||||||||||||||||||
| State and local government obligations | 1.1 | — | 1.1 | — | |||||||||||||||||||
| U.S. government treasury securities | 82.6 | 82.6 | — | — | |||||||||||||||||||
| Total available-for-sale debt securities | 151.9 | 82.6 | 57.4 | 11.9 | |||||||||||||||||||
| Marketable equity securities | 95.3 | 95.3 | — | — | |||||||||||||||||||
| Total short-term investments | 247.2 | 177.9 | 57.4 | 11.9 | |||||||||||||||||||
| Prepaid expenses and other current assets: | |||||||||||||||||||||||
| Derivative assets | 15.9 | — | 15.9 | — | |||||||||||||||||||
| Long-term investments: | |||||||||||||||||||||||
| Available-for-sale debt securities: | |||||||||||||||||||||||
| Corporate debt securities | 132.2 | — | 105.5 | 26.7 | |||||||||||||||||||
| Mortgage and other asset-backed securities | 75.7 | — | 75.7 | — | |||||||||||||||||||
| State and local government obligations | 2.7 | — | 2.7 | — | |||||||||||||||||||
| U.S. government treasury securities | 36.3 | 36.3 | — | — | |||||||||||||||||||
| Total Available-for-sale debt securities | 246.9 | 36.3 | 183.9 | 26.7 | |||||||||||||||||||
| Total long-term investments | 246.9 | 36.3 | 183.9 | 26.7 | |||||||||||||||||||
| Other long-term assets: | |||||||||||||||||||||||
| Derivative assets | 278.6 | — | 278.6 | — | |||||||||||||||||||
| Total assets | $ | 4,008.4 | $ | 3,434.0 | $ | 535.8 | $ | 38.6 | |||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Accrued liabilities: | |||||||||||||||||||||||
| Derivative liabilities | $ | 7.1 | $ | — | $ | 7.1 | $ | — | |||||||||||||||
| Other long-term liabilities: | |||||||||||||||||||||||
| Derivative liabilities | 20.9 | — | 20.9 | — | |||||||||||||||||||
| Total liabilities | $ | 28.0 | $ | — | $ | 28.0 | $ | — | |||||||||||||||
| Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||
| Balance at September 29, 2024 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Cash and cash equivalents | $ | 3,286.2 | $ | 3,286.2 | $ | — | $ | — | |||||||||||||||
| Short-term investments: | |||||||||||||||||||||||
| Available-for-sale debt securities | |||||||||||||||||||||||
Corporate debt securities | 51.8 | — | 51.8 | — | |||||||||||||||||||
Foreign corporate bonds | 0.2 | — | 0.2 | — | |||||||||||||||||||
| Mortgage and other asset-backed securities | 0.4 | — | 0.4 | — | |||||||||||||||||||
State and local government obligations | 1.4 | — | 1.4 | — | |||||||||||||||||||
| U.S. government treasury securities | 36.9 | 36.9 | — | — | |||||||||||||||||||
| Total available-for-sale debt securities | 90.7 | 36.9 | 53.8 | — | |||||||||||||||||||
| Structured deposits | 84.1 | — | 84.1 | — | |||||||||||||||||||
| Marketable equity securities | 82.2 | 82.2 | — | — | |||||||||||||||||||
| Total short-term investments | 257.0 | 119.1 | 137.9 | — | |||||||||||||||||||
| Prepaid expenses and other current assets: | |||||||||||||||||||||||
| Derivative assets | 8.7 | — | 8.7 | — | |||||||||||||||||||
| Long-term investments: | |||||||||||||||||||||||
| Available-for-sale debt securities | |||||||||||||||||||||||
| Corporate debt securities | 112.8 | — | 101.8 | 11.0 | |||||||||||||||||||
| Mortgage and other asset-backed securities | 64.4 | — | 64.4 | — | |||||||||||||||||||
| State and local government obligations | 3.7 | — | 3.7 | — | |||||||||||||||||||
| U.S. government treasury securities | 94.9 | 94.9 | — | — | |||||||||||||||||||
Total Available-for-sale debt securities | 275.8 | 94.9 | 169.9 | 11.0 | |||||||||||||||||||
Structured Deposit | 0.2 | — | 0.2 | — | |||||||||||||||||||
Total long-term investments | 276.0 | 94.9 | 170.1 | 11.0 | |||||||||||||||||||
| Other long-term assets: | |||||||||||||||||||||||
| Derivative assets | 179.1 | — | 179.1 | — | |||||||||||||||||||
| Total assets | $ | 4,007.0 | $ | 3,500.2 | $ | 495.8 | $ | 11.0 | |||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Accrued liabilities: | |||||||||||||||||||||||
| Derivative liabilities | $ | 29.2 | $ | — | $ | 29.2 | $ | — | |||||||||||||||
| Other long-term liabilities: | |||||||||||||||||||||||
| Derivative liabilities | 56.7 | — | 56.7 | — | |||||||||||||||||||
| Total liabilities | $ | 85.9 | $ | — | $ | 85.9 | $ | — | |||||||||||||||
There were no material transfers between levels, and there was no significant activity within Level 3 instruments during the periods presented. The fair values of any financial instruments presented above exclude the impact of netting assets and liabilities when a legally enforceable master netting agreement exists.
Available-for-sale Debt Securities
The majority of long-term investments mature within 5 years. Proceeds from sales of securities were $1.1 million, $1.3 million, and $2.5 million for fiscal 2025, 2024, and 2023, respectively. Realized gains and losses were not material for fiscal 2025, 2024, and 2023. Gross unrealized holding gains and losses were not material as of September 28, 2025, and September 29, 2024.
Marketable Equity Securities
Marketable equity securities include equity mutual funds and exchange-traded funds. Our marketable equity securities portfolio approximates a portion of our liability under our MDCP, a defined contribution plan. Our MDCP liability was $115.6 million and $112.3 million as of September 28, 2025, and September 29, 2024, respectively. The changes in net unrealized holding gains and losses in the marketable equity securities portfolio included in earnings for fiscal 2025, 2024, and 2023 were not material. Gross unrealized holding gains and losses on marketable equity securities were not material as of September 28, 2025, and September 29, 2024.
Derivative Assets and Liabilities
Derivative assets and liabilities are described further in Note 3, Derivative Financial Instruments.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Assets and liabilities recognized or disclosed at fair value on the consolidated financial statements on a nonrecurring basis include items such as property, plant and equipment, ROU assets, goodwill and other intangible assets, equity and other investments, and other assets. These assets are measured at fair value if determined to be impaired. Impairment of property, plant and equipment and ROU assets is included in Note 1, Summary of Significant Accounting Policies and Estimates.
We recognized impairments during fiscal years ended September 28, 2025, September 29, 2024, and October 1, 2023. See Note 1, Summary of Significant Accounting Policies and Estimates, and Note 18, Restructuring, to the consolidated financial statements included in Item 8 of Part II of this 10-K for additional discussion of these impairments.
Fair Value of Other Financial Instruments
The estimated fair value of our long-term debt based on the quoted market price (Level 2) is included at Note 9, Debt.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 14, 2025 | Showing above |
| 2024 | Nov 20, 2024 | |
| 2023 | Nov 17, 2023 | |
| 2022 | Nov 18, 2022 | |
| 2021 | Nov 19, 2021 | |
| 2020 | Nov 12, 2020 | |
| 2019 | Nov 15, 2019 | |
| 2018 | Nov 16, 2018 | |
| 2017 | Nov 17, 2017 | |
| 2016 | Nov 18, 2016 | |
| 2015 | Nov 12, 2015 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.