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.

The table below presents financial information for our reportable operating segments and All Other Segments (in millions):

Quarter Ended



	Americas		China/ Asia Pacific		EMEA⁽¹⁾			Channel Development		All Other Segments			Segment Total
April 1, 2018
Total net revenues	$	4,003.5	$	1,186.4	$	266.1		$	500.2	$	75.6		$	6,031.8
Depreciation and amortization expenses	160.4		121.6		8.1			0.2		1.0			291.3
Income from equity investees	—		16.7		—			36.0		—			52.7
Operating income/(loss)	801.3		204.6		(4.3		)	215.3		(114.8		)	1,102.1

April 2, 2017
Total net revenues	$	3,720.4	$	768.9	$	231.7		$	461.3	$	111.7		$	5,294.0
Depreciation and amortization expenses	155.4		49.3		7.6			0.6		3.5			216.4
Income from equity investees	—		44.1		—			40.0		—			84.1
Operating income/(loss)	826.1		175.9		27.7			193.6		(25.5		)	1,197.8

Two Quarters Ended



	Americas		China/ Asia Pacific		EMEA⁽¹⁾		Channel Development		All Other Segments			Segment Total
April 1, 2018
Total net revenues	$	8,269.3	$	2,030.0	$	549.9	$	1,060.4	$	195.9		$	12,105.5
Depreciation and amortization expenses	318.4		175.3		15.8		0.7		1.7			511.9
Income from equity investees	—		67.5		—		74.6		—			142.1
Operating income/(loss)	1,780.6		401.4		34.7		458.4		(144.6		)	2,530.5

April 2, 2017
Total net revenues	$	7,711.8	$	1,539.6	$	493.9	$	1,014.9	$	266.8		$	11,027.0
Depreciation and amortization expenses	307.8		98.0		15.2		1.2		6.3			428.5
Income from equity investees	—		86.6		—		82.0		—			168.6
Operating income/(loss)	1,784.6		339.1		71.6		436.4		(15.4		)	2,616.3

⁽¹⁾During the quarter and two quarters ended April 1, 2018, EMEA operating income/(loss) included an impairment charge of $28.5 million associated with our Starbucks Coffee Switzerland reporting unit. Refer to Note 4, Fair Value Measurements, for additional information.

All Other Segments includes our Teavana business, and fiscal 2018 results reflect the strategy to close Teavana-branded retail stores announced in fiscal 2017 to focus on sales of premium Teavana^TM/MC tea products at Starbucks branded stores and, to a lesser extent, consumer product channels. The existing portfolio of Teavana stores are expected to be closed during fiscal 2018. Lease exit costs associated with our restructuring efforts will be recognized concurrently with either actual store closures or upon reaching a lease termination agreement with the landlord. Total lease exit costs are expected to be approximately $134.5 million of which $100.9 million and $117.5 million were recorded within restructuring expenses on the consolidated statement of earnings in the quarter and two quarters ended April 1, 2018, respectively. During the first two quarters of 2017, we did not record any restructuring expenses. Previously recorded lease exit costs recorded within restructuring expenses for fiscal year 2017 were $15.7 million.

Reconciliation of total segment operating income to consolidated earnings before income taxes (in millions):



	Quarter Ended						Two Quarters Ended
	Apr 1, 2018			Apr 2, 2017			Apr 1, 2018			Apr 2, 2017
Total segment operating income	$	1,102.1		$	1,197.8		$	2,530.5		$	2,616.3
Unallocated corporate operating expenses	(329.6		)	(262.4		)	(641.9		)	(548.0		)
Consolidated operating income	772.5			935.4			1,888.6			2,068.3
Gain resulting from acquisition of joint venture	47.6			—			1,373.9			—
Gains/(loss) resulting from divestiture of certain operations	(4.9		)	9.6			496.3			9.6
Interest income and other, net	35.5			58.3			123.7			82.4
Interest expense	(35.1		)	(22.9		)	(61.0		)	(46.7		)
Earnings before income taxes	$	815.6		$	980.4		$	3,821.5		$	2,113.6