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		Channel Development		All Other Segments			Segment Total
July 1, 2018
Total net revenues	$	4,230.6	$	1,229.0	$	275.4	$	509.0	$	66.3		$	6,310.3
Depreciation and amortization expenses	159.3		120.7		8.0		0.2		1.5			289.7
Income from equity investees	—		23.5		—		47.9		—			71.4
Operating income/(loss)	908.7		234.1		34.9		212.8		(9.8		)	1,380.7

July 2, 2017
Total net revenues	$	3,991.9	$	840.6	$	249.9	$	478.7	$	100.4		$	5,661.5
Depreciation and amortization expenses	152.8		51.0		7.7		0.5		3.0			215.0
Income from equity investees	—		51.8		—		49.2		—			101.0
Operating income/(loss)	974.8		223.8		9.8		210.2		(112.3		)	1,306.3

Three Quarters Ended



	Americas		China/ Asia Pacific		EMEA		Channel Development		All Other Segments			Segment Total
July 1, 2018
Total net revenues	$	12,500.2	$	3,259.1	$	825.3	$	1,569.4	$	261.9		$	18,415.9
Depreciation and amortization expenses	477.7		296.0		23.8		0.9		3.2			801.6
Income from equity investees	—		91.0		—		122.5		—			213.5
Operating income/(loss)	2,689.6		635.5		69.5		671.2		(154.4		)	3,911.4

July 2, 2017
Total net revenues	$	11,703.7	$	2,380.3	$	743.9	$	1,493.6	$	367.0		$	16,688.5
Depreciation and amortization expenses	460.6		148.9		22.9		1.7		9.3			643.4
Income from equity investees	—		138.4		—		131.1		—			269.5
Operating income/(loss)	2,759.4		563.2		81.5		646.5		(127.9		)	3,922.7

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 $134.7 million of which $1.5 million and $119.0 million were recorded within restructuring expenses on the consolidated statement of earnings in the quarter and three quarters ended July 1, 2018, respectively. During the first three 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						Three Quarters Ended
	Jul 1, 2018			Jul 2, 2017			Jul 1, 2018			Jul 2, 2017
Total segment operating income	$	1,380.7		$	1,306.3		$	3,911.4		$	3,922.7
Unallocated corporate operating expenses	(342.5		)	(262.1		)	(984.5		)	(810.6		)
Consolidated operating income	1,038.2			1,044.2			2,926.9			3,112.1
Gain resulting from acquisition of joint venture	2.5			—			1,376.4			—
Net gain resulting from divestiture of certain operations	—			—			496.3			9.6
Interest income and other, net	31.5			31.7			155.2			114.1
Interest expense	(45.4		)	(23.5		)	(106.4		)	(70.2		)
Earnings before income taxes	$	1,026.8		$	1,052.4		$	4,848.4		$	3,165.6