Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties. Products other than whole bean coffees and coffee beverages sold in Starbucks ® stores include tea and a number of ready-to-drink beverages that are purchased from several specialty suppliers, usually under long-term supply contracts. Revenues from foodservice accounts comprised 3% of total net revenues in fiscal 2014. We routinely evaluate the likelihood of realizing the benefit of our deferred tax assets and may record a valuation allowance if, based on all available evidence, we determine that some portion of the tax benefit will not be realized. The Company also holds patents on certain products, systems and designs. Product SupplyStarbucks is committed to selling only the finest whole bean coffees and coffee beverages. Starbucks also sells coffee and tea products and licenses its trademark through other channels such as licensed retail stores and, through certain of its equity investees and licensees, Starbucks produces and sells a variety of ready-to-drink beverages.
As a result, Starbucks believes it delivers benefits to the Company and its stakeholders, including employees, business partners, customers, suppliers, shareholders, community members and others. The portion of depreciation expense related to production and distribution facilities is included in cost of sales including occupancy costs in the consolidated statements of earnings. Fair value is the price a willing buyer would pay for the reporting unit and is typically calculated using a discounted cash flow model. A selection ofbeverage-making equipment and accessories are also sold in the stores. Examples include, but are not limited to, estimates for inventory reserves, asset and goodwill impairments, assumptions underlying self-insurance reserves, income from unredeemed stored value cards, stock-based compensation forfeiture rates, future asset retirement obligations, and the potential outcome of future tax consequences of events that have been recognized in the financial statements. Starbucks has a licensing agreement with Kraft Foods, Inc.
Products other than whole bean coffees and coffee beverages sold in Starbucks retail stores are obtained through anumber of different channels. Collectively, these operations accounted for approximately 8% of specialty revenues in fiscal 2003. Further continuing its global expansion, Starbucks increased its by around two thousand during 2017, totaling 27,339 stores by the end of the fiscal year. Food items include pastries, preparedbreakfast and lunch sandwiches, oatmeal, and salads as well as sodas, juices and bottled water. In almost all markets in which we do business, there are numerous competitors in the specialty coffee beverage business.
During fiscal 2008, 550 International licensed stores were opened. Together with our bottling partners, we are executing against a solid, focused vision. And while we did not know how severe the economic downturn would become, we immediately took a hard look at our business and what it would take to weather that storm. We believe that future cash flows generated from operations and existing cash and investments both domestically and internationally will be sufficient to finance capital requirements for our core businesses in those respective markets as well as shareholder distributions for the foreseeable future. Given its premium brand, Starbucks may be impacted more severely than itscompetitors by customers trading down to lower priced coffee beverages and related products. Schultz was the director of Retail Operations and Marketing for Starbucks Coffee Company, and from January 1986 to July 1987, he was the chairman of the board, chief executive officer and president of Il Giornale Coffee Company, a predecessor to the Company. We also expect to fund a majority of the second tender offer step with offshore cash.
Instead, the par value of repurchased shares is deducted from common stock and the excess repurchase price over par value is deducted from additional paid-in capital and from retained earnings, once additional paid-in capital is depleted. Management believes it must preserve and grow the value of the Starbucks brand to be successful in the future, particularly outside of North America, where the Starbucks brand is less well-known. Compensation expense is recognized only for those options expected to vest, with forfeitures estimated at the date of grant based on our historical experience and future expectations. Further, to the extent that the Company is unable to improve its financial performance in fiscal 2009, further restructuring measures may be required in the future. Although most coffee trades in the commodity market, high-altitude arabica coffee of the quality sought by the Company tends to trade on a negotiated basis at a substantial premium above commodity coffee prices, depending upon the supply and demand at the time of purchase.
In addition, our income tax returns are periodically audited by domestic and foreign tax authorities. An annual report is a comprehensive report on a company's activities throughout the preceding year. In certain situations, Starbucks has an equity ownership interest in licensee operations. This was partially offset by the addition of Teavana and continued investment in our emerging brands approximately 60 basis points. Then conscious choice brings one to aspire to lead.
During fiscal 2008, the Company expanded this sustainability program to Africa by establishing a Farmer Support Center in Rwanda. Excluding the impact of company-operated store revenues, other operating expenses decreased 100 basis points, largely due to cost management approximately 60 basis points and sales leverage approximately 40 basis points. This target consists of anticipated savings resulting from store closures, reduction of support staff and infrastructure, supply chain efficiencies, store operations improvements and various other initiatives across the business. Yes ¥ No nIndicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any,every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T § 232. The Company depends upon its relationships with coffee producers, outside trading companies and exporters for itssupply of green coffee. In addition, green coffee prices have been affected in the past, and may be affected in the future, by the actions of certain organizations and associations that have historically attempted to influence prices of green coffee through agreements establishing export quotas or by restricting coffee supplies.
Performance goals are determined by the Board of Directors and may include measures such as earnings per share, operating income and return on invested capital. Our future growth depends on them, and on staying true to the values that made Starbucks the world-class brand it is today. Exhibits, Financial Statement Schedules and Reports on Form 8-K a The following documents are filed as a part of this Annual Report on Form 10-K: 1. The Company also maintains an e-commerce site at SeattlesBest. Moreover, Starbucks operates in a verycompetitive and rapidly changing environment. We have been extremely excited to see our customers in North Americaembrace this 100 percent natural roasted soluble coffee that maintains the high standards of quality and taste of freshlybrewed Starbucks® coffee.