Segment Reporting

Segment information is prepared on the same basis that our ceo, who is our chief operating decision maker, manages the segments, evaluates financial results, and makes key operating decisions. Beginning with the first quarter of fiscal 2012, we redefined our reportable operating segments to align with the three-region leadership and organizational structure of our retail business that took effect at the beginning of fiscal 2012. The three-region structure includes: 1) Americas, inclusive of the US, Canada, and Latin America; 2) Europe, Middle East, and Africa (“EMEA”); and 3) China / Asia Pacific (“CAP”).

Accordingly, beginning with the first quarter of fiscal 2012, we revised our reportable operating segments from 1) US, 2) International, and 3) Global Consumer Products Group to the following four reportable segments: 1) Americas, 2) EMEA, 3) CAP, and 4) Global Consumer Products Group. In the second quarter of fiscal 2012, we renamed our Global Consumer Products Group segment “Channel Development.”

Effective at the beginning of fiscal 2013, we decentralized certain leadership functions in the areas of retail marketing and category management, global store development and partner resources to support and align with the respective operating segment presidents. In conjunction with these moves, certain general and administrative and depreciation and amortization expenses associated with these functions, which were previously reported as unallocated corporate expenses within "Other," are now reported within the respective reportable operating segments to align with the regions which they support.

Concurrent with the change in reportable operating segments and realignment of certain operating expenses noted above, we revised our prior period financial information to reflect comparable financial information for the new segment structure and reporting changes. Historical financial information presented herein reflects these changes. There was no impact on consolidated net revenues, total operating expenses, operating income, or net earnings as a result of these changes.

Beginning in the second quarter of fiscal 2013, we removed unallocated corporate expenses from Other. Other is now referred to as All Other Segments and includes Teavana, Seattle's Best Coffee and Evolution Fresh, as well as our Digital Ventures business. Unallocated corporate operating expenses, which pertain primarily to corporate administrative functions that support the operating segments but are not specifically attributable to or managed by any segment, are presented as a reconciling item between total segment operating results and consolidated financial results. While our consolidated results are not impacted, our historical segment financial information has been revised to be consistent with the current presentation.

Americas

Americas operations sell coffee and other beverages, complementary food, packaged coffees, single serve coffee products and a focused selection of merchandise through company-operated stores and licensed stores. The Americas segment is our most mature business and has achieved significant scale.

Europe, Middle East, and Africa

EMEA operations sell coffee and other beverages, complementary food, packaged coffees, single serve coffee products and a focused selection of merchandise through company-operated stores and licensed stores. Certain markets within EMEA operations are in the early stages of development and require a more extensive support organization, relative to the current levels of revenue and operating income, than Americas.

China / Asia Pacific

China /Asia Pacific operations sell coffee and other beverages, complementary food, packaged coffees, single serve coffee products and a focused selection of merchandise through company-operated stores and licensed stores. Certain markets within China / Asia Pacific operations are in the early stages of development and require a more extensive support organization, relative to the current levels of revenue and operating income, than Americas.

Channel Development

Channel Development operations sell a selection of packaged coffees as well as a selection of premium Tazo® teas globally. Channel Development operations also produce and sell a variety of ready-to-drink beverages, Starbucks- and Tazo-branded single serve products, and Starbucks Refreshers™ beverages. The US foodservice business, which is included in the Channel Development segment, sells coffee and other related products to institutional foodservice companies.

All Other Segments

All Other Segments includes Teavana, Seattle's Best Coffee and Evolution Fresh, as well as our Digital Ventures business.

Consolidated revenue mix by product type (in millions):



Fiscal Year Ended	Sep 29, 2013				Sep 30, 2012				Oct 2, 2011
Beverage	$	8,588.9	58	%	$	7,838.8	59	%	$	7,217.0	62	%
Food	2,424.6		16	%	2,092.8		16	%	2,008.0		17	%
Packaged and single serve coffees	2,166.5		15	%	2,001.1		15	%	1,451.0		12	%
Other⁽¹⁾	1,712.2		11	%	1,366.8		10	%	1,024.4		9	%
Total	$	14,892.2	100	%	$	13,299.5	100	%	$	11,700.4	100	%


⁽¹⁾	Other includes royalty and licensing revenues, beverage-related ingredients, tea, packaging and other merchandise.

Information by geographic area (in millions):



Fiscal Year Ended	Sep 29, 2013		Sep 30, 2012		Oct 2, 2011
Net revenues from external customers:
United States	$	11,415.0	$	10,177.5	$	8,966.9
Other countries	3,477.2		3,122.0		2,733.5
Total	$	14,892.2	$	13,299.5	$	11,700.4

No customer accounts for 10% or more of our revenues. Revenues are shown based on the geographic location of our customers. Revenues from countries other than the US consist primarily of revenues from Canada, the UK, and China, which together account for approximately 64% of net revenues from other countries for fiscal 2013.



Fiscal Year Ended	Sep 29, 2013		Sep 30, 2012		Oct 2, 2011
Long-lived assets:
United States	$	4,641.3	$	2,767.1	$	2,587.1
Other countries	1,404.0		1,252.5		978.4
Total	$	6,045.3	$	4,019.6	$	3,565.5

Management evaluates the performance of its operating segments based on net revenues and operating income. The accounting policies of the operating segments are the same as those described in Note 1. Operating income represents earnings before net interest income and other, interest expense and income taxes. Management does not evaluate the performance of its operating segments using asset measures. The identifiable assets by segment disclosed in this note are those assets specifically identifiable within each segment and include cash, net property, plant and equipment, equity and cost investments, goodwill, and other intangible assets. Assets not identified by reportable operating segment below are corporate assets and are primarily comprised of cash and investments, assets of the corporate headquarters and roasting facilities, and inventory.

The table below presents financial information for our reportable operating segments and All Other Segments for the years ended September 29, 2013, September 30, 2012, and October 2, 2011 including the reclassifications discussed in Note 1 (in millions):



	Americas		EMEA		China / Asia Pacific		Channel Development		All Other Segments			Segment Total
Fiscal 2013
Total net revenues	$	11,000.8	$	1,160.0	$	917.0	$	1,420.7	$	393.7		$	14,892.2
Depreciation and amortization expenses	429.3		55.5		33.8		1.1		11.7			531.4
Income/(loss) from equity investees	2.4		0.4		152.0		96.6		—			251.4
Operating income/(loss)	2,365.2		64.2		321.2		415.5		(34.5		)	3,131.6
Total assets	2,323.4		510.6		805.0		89.2		821.1			4,549.3

Fiscal 2012
Total net revenues	$	9,936.0	$	1,141.3	$	721.4	$	1,292.2	$	208.6		$	13,299.5
Depreciation and amortization expenses	392.4		57.1		23.2		1.3		2.5			476.5
Income/(loss) from equity investees	2.1		0.3		122.4		85.2		0.7			210.7
Operating income/(loss)	2,020.4		6.8		252.6		340.4		(27.4		)	2,592.8
Total assets	2,199.0		467.4		656.6		88.8		80.8			3,492.6

Fiscal 2011
Total net revenues	$	9,065.0	$	1,046.8	$	552.3	$	860.5	$	175.8		$	11,700.4
Depreciation and amortization expenses	391.4		53.4		18.1		2.4		1.0			466.3
Income/(loss) from equity investees	1.6		6.0		92.9		75.6		(2.4		)	173.7
Operating income/(loss)	1,775.2		38.9		191.3		283.5		(35.8		)	2,253.1
Total assets	1,841.9		398.2		540.0		54.7		44.8			2,879.6

The following table reconciles total segment operating income in the table above to consolidated earnings/(loss) before income taxes (in millions):



Fiscal Year Ended	Sep 29, 2013			Sep 30, 2012			Oct 2, 2011
Total segment operating income	$	3,131.6		$	2,592.8		$	2,253.1
Unallocated corporate operating expenses⁽¹⁾	(3,457.0		)	(595.4		)	(524.6		)
Consolidated operating income/(loss)	(325.4		)	1,997.4			1,728.5
Interest income and other, net	123.6			94.4			115.9
Interest expense	(28.1		)	(32.7		)	(33.3		)
Earnings/(loss) before income taxes	$	(229.9	)	$	2,059.1		$	1,811.1

⁽¹⁾ Fiscal 2013 includes a pretax charge of $2,784.1 million resulting from the litigation charge we recorded associated with the conclusion of our arbitration with Kraft.