SPECIALTY COFFEE
Response to the following:
STARBUCKS CORPORATION*
Fiscal Years ended October 3, 2010, September 27, 2009 and September 28, 2008
Defined Contribution Plans
We maintain voluntary defined contribution plans, both qualified and non-qualified, covering eligible employees as defined in the plan documents. Participating employees may elect to defer and contribute a portion of their eligible compensation to the plans up to limits stated in the plan documents, not to exceed the dollar amounts set by applicable laws. Our matching contributions to all US and non-US plans were $23.5 million, $19.7 million and $25.3 million in fiscal years 2010, 2009 and 2008, respectively.
Required:
a. "Participating employees may elect to defer and contribute a portion of their eligible compensation to the plans up to limits in the plan documents." Comment.
b. Comment on the company liability for this type of plan.
c. Company contributions to all U.S. and non-U.S. plans were "$23.5 million, $19.7 million and $25.3 million in fiscal years 2010, 2009 and 2008, respectively." Why the fluctuations in company contributions?
d. Total net revenues for the Starbucks Corporation were $10,707,400,000, $9,774,000,000 and $10,383,000,000 in fiscal years 2010, 2009 and 2008, respectively. Comment on the materiality of company contributions in relation to net revenues.