Income Taxes (Tables)

12 Months Ended

Sep. 28, 2025

Components of earnings before income taxes (in millions):


Fiscal Year Ended	Sep 28, 2025		Sep 29, 2024		Oct 1, 2023
United States	$	1,850.1	$	4,087.6	$	4,488.6
Foreign	657.2		882.0		913.3
Total earnings before income taxes	$	2,507.3	$	4,969.6	$	5,401.9

Provision/(benefit) for income taxes (in millions):

Reconciliation of the statutory U.S. federal income tax rate with our effective income tax rate:


Fiscal Year Ended	Sep 28, 2025		Sep 29, 2024		Oct 1, 2023
Statutory rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal tax benefit	3.4		3.3		3.4
Foreign rate differential	0.3		0.3		0.4
Residual tax on foreign earnings	3.6		0.4		—
Foreign derived intangible income	(1.6)		(0.8)		(0.8)







Tax status change of foreign entity	(1.4)		—		—

Other, net	0.6		0.1		(0.4)
Effective tax rate	25.9	%	24.3	%	23.6	%

Tax effect of temporary differences and carryforwards that comprise significant portions of deferred tax assets and liabilities (in millions):


	Sep 28, 2025		Sep 29, 2024
Deferred tax assets:
Operating lease liabilities	$	2,646.7	$	2,595.1

Stored value card liability and deferred revenue	1,593.0		1,612.5
Intangible assets and goodwill	355.5		372.6









Other	780.9		692.2
Total	5,376.1		5,272.4
Valuation allowance	(189.2)		(194.5)
Total deferred tax asset, net of valuation allowance	5,186.9		5,077.9
Deferred tax liabilities:
Operating lease, right-of-use assets	(2,466.8)		(2,483.7)
Property, plant and equipment	(641.3)		(580.8)

Other	(302.3)		(267.8)
Total	(3,410.4)		(3,332.3)
Net deferred tax asset (liability)	$	1,776.5	$	1,745.6
Reported as:

Deferred income tax assets	$	1,826.9	$	1,766.7

Deferred income tax liabilities (included in Other long-term liabilities)	(50.4)		(21.1)
Net deferred tax asset (liability)	$	1,776.5	$	1,745.6

The following table summarizes the activity related to our unrecognized tax benefits (in millions):


	Sep 28, 2025		Sep 29, 2024		Oct 1, 2023
Beginning balance	$	108.0	$	105.0	$	89.7
Increase related to prior year tax positions	3.1		7.9		1.2
Decrease related to prior year tax positions	(0.4)		(6.4)		(0.4)
Increase related to current year tax positions	12.9		10.3		14.5

Decreases related to settlements with taxing authorities	(0.7)		(8.8)		—
Decrease related to lapsing of statute of limitations	(3.0)		—		—
Ending balance	$	119.9	$	108.0	$	105.0

STARBUCKS CORP 10-K