m market to open retail locations.Appendix G:Potential Financial problems:Starbucks annual report states that, in connection with various bank loans entered into by Starbucks Coffee Japan Limited, the Company has guaranteed $25.4 million of the outstanding debt in the event of default by Starbucks Coffee Japan Limited. In the normal course of business, the Company has various legal claims and other contingent matters outstanding. Management believes that any ultimate liability arising from these actions would not have a material adverse effect on the Company ’s results of operations or financial condition as of and for the fiscal year ended October 1,2000. Despite these potential problems, Starbucks remains excited about future growth and continues to be hopeful about the future.Appendix H:Operational Structure:In 1994, Starbucks acquired all of the capital stock of The Coffee Connection, a roaster/retailer of specialty coffee. Starbucks New Venture was created in fiscal 1994 to develop coffee-based beverages in partnership with the Pepsi-Cola Company. In October 1995, SBI was created to pursue development of Starbucks stores internationally, and Starbucks Holding Company was created to enter into a joint venture with Dreyer's Grand Ice Cream, Inc. to develop and distribute Starbucks premium coffee ice creams....
