Capital Budget - Capital Budget Starbucks acquired 100 of...

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Capital Budget Starbucks acquired 100% of outstanding share of Teavana Holdings, Inc. in Dec. 31, 2012, making Teavana a wholly-owned subsidiary of Starbucks. Teavana, a premium loose-leaf tea, authentic and other tea-related merchandise, to elevate the tea experience expanding domestically and internationally. It was an addition to its brands such as Tazo, Seattle’s Best Coffee and others. The company acquired Teavana for a price of $615.8 million in cash and expects to earn $0.01 per share in fiscal year 2013. Out of the total cash paid, $12.2 million was excluded as it represented contingent consideration receivable, all of which has been settled. At closing, the company repaid $35.2 million for long-term debt outstanding on Teavana’s balance sheet. The table below illustrates the allocation of the purchase price to the fair values of the assets ( in millions ): Other current and noncurrent assets acquired include prepaid expense, trade receivables, and deferred tax assets. The brand’s trade name is value was valued at $105.5 million determined to
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  • Fall '11
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  • Finance, Balance Sheet, Generally Accepted Accounting Principles, premium loose-leaf tea, asset intangible assets

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