• The cash flow statement reports the cash purchases for property, plant and equipment. How much did the company purchase and sell?

Property, Plant and Equipment Property, plant and equipment, which includes assets under capital leases, are carried at cost less accumulated depreciation. Cost includes all direct costs necessary to acquire and prepare assets for use, including internal labor and overhead in some cases. Depreciation is computed using the straight-line method over estimated useful lives of the assets, generally ranging from 2 to 15 years for equipment and 30 to 40 years for buildings. Leasehold improvements are amortized over the shorter of their estimated useful lives or the related lease life, generally 10 years. For leases with renewal periods at our option, we generally use the original lease term, excluding renewal option periods, to determine estimated useful lives. If failure to exercise a renewal option imposes an economic penalty to us, we may determine at the inception of the lease that renewal is reasonably assured and include the renewal option period in the determination of the appropriate estimated useful lives. The portion of depreciation expense related to production and distribution facilities is included in cost of sales on our consolidated statements of earnings. The costs of repairs and maintenance are expensed when incurred, while expenditures for refurbishments and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. When assets are disposed of, whether through retirement or sale, the net gain or loss is recognized in net earnings. Long-lived assets to be disposed of are reported at the lower of their carrying amount or fair value less estimated costs to sell. We evaluate property, plant and equipment for impairment when facts and circumstances indicate that the carrying values of such assets may not be recoverable. When evaluating for impairment, we first compare the carrying value of the asset to the asset's estimated future undiscounted cash flows. If the estimated undiscounted future cash flows are less than the carrying value of the asset, we determine if we have an impairment loss by comparing the carrying value of the asset to the asset's estimated fair value and recognize an impairment charge when the asset's carrying value exceeds its estimated fair value. The fair value of the asset is estimated using a discounted cash flow model based on forecasted future revenues and operating costs, using internal projections. Property, plant and equipment assets are grouped at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For company-operated store assets, the impairment test is performed at the individual store asset group level. Starbucks Corporation 2019 Form 10-K 53 We recognized net disposition charges of $64.6 million, $32.8 million, and $46.9 million in fiscal 2019, 2018, and 2017, respectively. Additionally, we recognized net impairment charges of $43.4 million, $42.8 million, and $56.1 million in fiscal 2019, 2018, and 2017, respectively. Of the total net impairment charges, $7.1 million and $37.0 million in fiscal 2019 and 2018, respectively, were restructuring related and recorded in restructuring and impairment expenses. Unless it is restructuring related, the nature of the underlying asset that is impaired or disposed of will determine the operating expense line on which the related impact is recorded on our consolidated statements of earnings. STARBUCKS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Sep 30, Oct 1 Oct 2 Fiscal Year Ended 2018 2017 2016 OPERATING ACTIVITIES: Net earnings including noncontrolling interests $ 4,518.0 $ 2,884.9 $ 2,818.9 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 1,305.9 1,067.1 1,030.1 Deferred income taxes, net 714.9 95.1 265.7 Income earned from equity method investees (242.8) (310.2) (250.2) Distributions received from equity method investees 226.8 186.6 223.3 Gain resulting from acquisition of joint venture (1,376.4) Net gain resulting from divestiture of certain retail operations (499.2) (93.5) (6.1) Stock-based compensation 250.3 176.0 218.1 Goodwill impairments 37.6 87.2 Other 89.0 68.9 45.1 Cash provided by changes in operating assets and liabilities: Accounts receivable 131.0 (96.8) (55.6) Inventories (41.2) 14.0 (67.5) Accounts payable 391.6 46.4 46.9 Deferred revenue 7,109.4 130.8 180.4 Other operating assets and liabilities (677.1) (4.7) 248.8 Net cash provided by operating activities 11,937.8 4,251.8 4,697.9 INVESTING ACTIVITIES: Purchases of investments (191.9) (674.4) (1,585.7) Sales of investments 459.0 1,054.5 680.7 Maturities and calls of investments 45.3 149.6 27.9 Acquisitions, net of cash acquired (1,311.3) Additions to property, plant and equipment (1,976.4) (1,519.4) (1,440.3) Net proceeds from the divestiture of certain operations 608.2 85.4 69.6 Other 5.6 54.3 24.9 Net cash used by investing activities (2,361.5) (850.0) (2,222.9) FINANCING ACTIVITIES: Proceeds from issuance of long-term debt 5,584.1 750.2 1,254.5 Repayments of long-term debt (400.0) Proceeds from issuance of common stock 153.9 150.8 160.7 Cash dividends paid (1,743.4) (1,450.4) (1,178.0) Repurchase of common stock (7,133.5) (2,042.5) (1,995.6) Minimum tax withholdings on share-based awards (62.7) (82.8) (106.0) Other (41.2) (8.4) Net cash used by financing activities (3,242.8) (3,079.1) (1,872.8) Effect of exchange rate changes on cash and cash equivalents (39.5) 10.8 (3.5) Net increase in cash and cash equivalents 6,294.0 333.5 598.7 CASH AND CASH EQUIVALENTS: Beginning of period 2.462.3 2,128.8 1,530.1 End of period 8.756.3 S 2.462.35 2.128.8 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the period for: Interest, net of capitalized interest $ 137.1 $ 96.6 S 74.7 Income taxes, net of refunds $ 1,176.9 $ 1,389.1 S 878.7 See Notes to Consolidated Financial Statements. Sep 30, 2018 Oct 1, 2017 4,518,0 $ 2,884.9 1,067.1 95.1 (310.2) 186.6 1,305.9 714.9 (242.8) 226.8 (1,376.4) (499.2) 250.3 37.6 89.0 (93.5) 176.0 87.2 68.9 131.0 (41.2) (839.5) 146.0 3916 7,109.4 16.4 11,937.8 (96.8) 14.0 (20.0) (91.9) 46.4 130.8 1072 4,251.8 STARBUCKS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Sep 29, Fiscal Year Ended 2019 OPERATING ACTIVITIES: Net earnings including noncontrolling interests 3,594.6 $ Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 1,449.3 Deferred income taxes, net (1,495.4) Income earned from equity method investees (250.6) Distributions received from equity method investees 216.8 Gain resulting from acquisition of joint venture Net gain resulting from divestiture of certain retail operations (622.8) Stock-based compensation 3080 Goodwill impairments 10.5 Other 1879 Cash provided by changes in operating assets and liabilities: Accounts receivable (1977) Inventories (173.0) Prepaid expenses and other current assets 922.0 Income taxes payable 1,237.1 Accounts payable 31.9 Deferred revenue (30.5) Other operating assets and liabilities (141.1) Net cash provided by operating activities 5,047.0 INVESTING ACTIVITIES: Purchases of investments (190.4) Sales of investments 298.3 Maturities and calls of investments 59.8 Acquisitions, net of cash acquired Additions to property, plant and equipment (1.806.6) Net proceeds from the divestiture of certain operations 684.3 Other (56.2) Net cash used by investing activities (1,010,8) FINANCING ACTIVITIES: Proceeds from issuance of long-term debt 1,996.0 Repayments of long-term debt (350,0) Proceeds from issuance of common stock 409.8 Cash dividends paid (1.761.3) Repurchase of common stock (10,222.3) Minimum tax withholdings on share-based awards (1116) Other (17.5) Net cash used by financing activities (10,056,9) Effect of exchange rate changes on cash and cash equivalents (49.0) Net increase/(decrease) in cash and cash equivalents (6,069.7) CASH AND CASH EQUIVALENTS: Beginning of period 8.7563 End of period 2.686.6 SUPPLEMENTAL DISCLOSURE OF CASH FLOW Cash paid during the period for: Interest, net of capitalized interest 299,5 s Income taxes, net of refunds 470.1 See Notes to Consolidated Financial Statements. (674.4) 1,054.5 149.6 (191.9) 459.0 45.3 (1,311.3) (1.976.4) 608.2 5.6 (2,361.5) (1,519.4) 85.4 54.3 (850.0) 5,584.1 153.9 (1,743.4) (7,133.5) (62.7) (41.2) (3,242.8) (395) 6,294.0 750.2 (400.0) 150.8 (1.450.4) (2,042.5) (82.8) (3,079.1) 10.8 333.5 2.462 3 8.756.3 2.128.8 2.462.3 137.1 S 1,176.9 $ 96.6 1,389.1