Estimates certain foodservice accounts, primarily in Canada, Japan

Estimates and assumptions Estimates are based on subjective as well as objective factors
and, as a result, judgment is required to estimate an amount at the date of the
financial statements. Management’s judgment is normally based on its knowledge and
experience about past and current events and its assumptions about conditions
it expects to exist and courses of action it expects to take.

Americas, CAP, and EMEA
operations sell coffee and other beverages, complementary food, packaged
coffees, single-serve coffee products and a focused selection of merchandise
through company-operated stores and licensed stores. Our Americas segment is
our most mature business and has achieved significant scale. Certain markets
within our CAP and EMEA operations are still in the early stages of development
and require a more extensive support organization, relative to their current
levels of revenue and operating income, than our Americas operations. The
Americas, CAP and EMEA segments also include certain foodservice accounts,
primarily in Canada, Japan and the U.K. (

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            Page 84- Note 16 of Starbucks 2017 Annual report have
four reportable operating segments: 1) Americas, inclusive of the U.S., Canada,
and Latin America; 2) China/Asia Pacific (“CAP”); 3) Europe, Middle East, and
Africa (“EMEA”) and 4) Channel Development.

Segment information requires companies to provide information
about the different types of business activities in which an enterprise engages
and the different economic environments in which it operates.  Providing this information helps external
users to better understand the company’s performance, assess its prospects for
future cash flows and make more informed decisions about an organization as a
whole. Management defines operating segments as an integral part that engages
in business activities which generates revenues as well as incur expenses; has operating
processes regularly reviewed by the Chief Operating Decision Maker (CODM) and
has definitive financial information available.

Internal control over financial reporting includes maintaining
records that in reasonable detail accurately and fairly reflect their
transactions; providing reasonable assurance that transactions are recorded as
necessary for preparation of their financial statements; providing reasonable
assurance that receipts and expenditures are made in accordance with management
authorization; and providing reasonable assurance that unauthorized
acquisition, use or disposition of company assets that could have a material
effect on their financial statements would be prevented or detected on a timely
basis. (

As stated on page 86 of Starbucks 2017 annual report, during the
fourth quarter an evaluation was performed under the supervision and with the
participation of management, including the chief executive officer and the chief
financial officer, of the effectiveness of their disclosure controls and procedures,
as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. They
concluded that the current disclosure controls and procedures were effective,
as of the end of the period covered by this report (October 1, 2017). (

Control Procedures are designed to prevent fraud and clerical errors
that may discredit the accuracy of a company’s financial statements.  Strict internal controls also reduce losses
from theft of company assets and identify low performing employees.  Internal controls should be implemented
before any financial information is reported to external auditors, lenders or
investors. Internal controls insure that amongst employees there are segregation
of duties, limitation to access, authorization, record keeping and verification.

We will look at Starbucks Financial Reporting as it relates to the
Financial Accounting Standards Board’s (FASB) generally accepted accounting
principles (GAAP) and submitted under the Securities Exchange Act of 1934 and
in compliance with the Sarbanes-Oxley Act of 2002.