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, EMEA and CAP 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. Our Americas segment is our most mature business and has achieved significant scale. Certain markets within our EMEA and CAP operations are still in the early stages of development and require a more extensive support organization, relative to their current levels of revenue and operating income, than our Americas operations. The Americas and EMEA segments also include certain foodservice accounts, primarily in Canada and the UK. Our Americas segment also includes our La Boulange^® retail stores.

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, such as Frappuccino® coffee drinks, Starbucks Doubleshot® espresso drinks and Starbucks Refreshers® beverages, as well as Starbucks- and Tazo-branded single-serve products. The US foodservice business, which is included in the Channel Development segment, sells coffee and other related products to institutional foodservice companies.

Consolidated revenue mix by product type (in millions):



Fiscal Year Ended	Sep 28, 2014				Sep 29, 2013				Sep 30, 2012
Beverage	$	9,458.4	58	%	$	8,674.7	58	%	$	7,883.8	59	%
Food	2,505.2		15	%	2,189.8		15	%	1,875.1		14	%
Packaged and single-serve coffees and teas	2,370.0		14	%	2,206.5		15	%	1,965.8		15	%
Other⁽¹⁾	2,114.2		13	%	1,795.8		12	%	1,552.1		12	%
Total	$	16,447.8	100	%	$	14,866.8	100	%	$	13,276.8	100	%


⁽¹⁾	"Other" primarily includes royalty and licensing revenues, beverage-related ingredients, ready-to-drink beverages and serveware, among other items.

In fiscal 2014, we moved ready-to-drink beverage revenues from the "Food" category to the "Other" category and combined packaged and single-serve teas, which were previously included in the "Other" category, with packaged and single serve coffees, which are now categorized as "Packaged and single-serve coffees and teas." Additionally, we revised our discount allocation methodology to more precisely allocate sales discounts to the various revenue product categories. None of these changes had a material impact on the composition of our revenue mix by product type. Prior period amounts have been revised to be consistent with the current period presentation.

Information by geographic area (in millions):



Fiscal Year Ended	Sep 28, 2014		Sep 29, 2013		Sep 30, 2012
Net revenues from external customers:
United States	$	12,590.6	$	11,389.6	$	10,154.8
Other countries	3,857.2		3,477.2		3,122.0
Total	$	16,447.8	$	14,866.8	$	13,276.8

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 65% of net revenues from other countries for fiscal 2014.



Fiscal Year Ended	Sep 28, 2014		Sep 29, 2013		Sep 30, 2012
Long-lived assets:
United States	$	5,135.8	$	4,641.3	$	2,767.1
Other countries	1,448.4		1,404.0		1,252.5
Total	$	6,584.2	$	6,045.3	$	4,019.6

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, Summary of Significant Accounting Policies. 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 and cash equivalents, 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 cash equivalents available for general corporate purposes, 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 28, 2014, September 29, 2013, and September 30, 2012, including reclassifications resulting from the correction of the immaterial error discussed in Note 1, Summary of Significant Accounting Policies. The reclassifications for fiscal years 2013 and 2012 were $21.8 million and $19.2 million for the Channel Development segment, respectively, and $3.6 million and $3.5 million for All Other Segments, respectively.



(in millions)	Americas		EMEA		China / Asia Pacific		Channel Development		All Other Segments			Segment Total
Fiscal 2014
Total net revenues	$	11,980.5	$	1,294.8	$	1,129.6	$	1,546.0	$	496.9		$	16,447.8
Depreciation and amortization expenses	469.5		59.4		46.1		1.8		15.2			592.0
Income from equity investees	—		3.7		164.0		100.6		—			268.3
Operating income/(loss)	2,809.0		119.2		372.5		557.2		(26.8		)	3,831.1
Total assets	2,521.4		663.0		939.8		84.6		825.2			5,034.0

Fiscal 2013
Total net revenues	$	11,000.8	$	1,160.0	$	917.0	$	1,398.9	$	390.1		$	14,866.8
Depreciation and amortization expenses	429.3		55.5		33.8		1.1		11.7			531.4
Income 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	$	1,273.0	$	205.1		$	13,276.8
Depreciation and amortization expenses	392.4		57.1		23.2		1.3		2.5			476.5
Income 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

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 28, 2014			Sep 29, 2013			Sep 30, 2012
Total segment operating income	$	3,831.1		$	3,131.6		$	2,592.8
Unallocated corporate operating expenses⁽¹⁾	(750.0		)	(3,457.0		)	(595.4		)
Consolidated operating income/(loss)	3,081.1			(325.4		)	1,997.4
Interest income and other, net	142.7			123.6			94.4
Interest expense	(64.1		)	(28.1		)	(32.7		)
Earnings/(loss) before income taxes	$	3,159.7		$	(229.9	)	$	2,059.1

⁽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.