Segment Reporting

12 Months Ended

Oct. 02, 2022

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

Segment information is prepared on the same basis that our interim ceo, who is our Chief Operating Decision Maker, manages the segments, evaluates financial results and makes key operating decisions.

We have three reportable operating segments: 1) North America, which is inclusive of the U.S. and Canada; 2) International, which is inclusive of China, Japan, Asia Pacific, Europe, Middle East and Africa, Latin America and the Caribbean; and 3) Channel Development.

North America and International 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 North America segment is our most mature business and has achieved significant scale.

Channel Development revenues include packaged coffee, tea, foodservice products and ready-to-drink beverages to customers outside of our company-operated and licensed stores. Most of our Channel Development revenues are from product sales to and royalty revenues from Nestlé through the Global Coffee Alliance.

Consolidated revenue mix by product type (in millions):

Fiscal Year Ended	Oct 2, 2022				Oct 3, 2021				Sep 27, 2020
Beverage(1)	$	19,555.3	61	%	$	18,317.0	63	%	$	14,337.5	61	%
Food(2)	5,804.2		18	%	5,053.4		17	%	3,799.2		16	%
Other(3)	6,890.8		21	%	5,690.2		20	%	5,381.3		23	%
Total	$	32,250.3	100	%	$	29,060.6	100	%	$	23,518.0	100	%

(1)     Beverage represents sales within our company-operated stores.

(2)     Food includes sales within our company-operated stores.

(3)     “Other” primarily consists of packaged and single-serve coffees and teas, royalty and licensing revenues, beverage-related ingredients, serveware and ready-to-drink beverages, among other items.

Information by geographic area (in millions):

Fiscal Year Ended	Oct 2, 2022		Oct 3, 2021		Sep 27, 2020
Net revenues:
United States	$	23,365.6	$	20,377.8	$	16,879.8
China	3,008.3		3,674.8		2,582.8
Other countries	5,876.4		5,008.0		4,055.4
Total	$	32,250.3	$	29,060.6	$	23,518.0
Long-lived assets:
United States	$	13,176.2	$	12,819.4	$	12,624.9
China	4,174.0		4,673.8		4,425.6
Other countries	3,609.5		4,143.0		4,517.6
Total	$	20,959.7	$	21,636.2	$	21,568.1

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 U.S. and China consist primarily of revenues from Japan, Canada and the U.K., which together account for approximately 74% of net revenues from other countries for fiscal 2022.

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 and Estimates.

Operating income represents earnings before other income and expenses and income taxes. The identifiable assets by segment disclosed in this note are those assets specifically identifiable within each segment and include cash and cash equivalents, ROU assets, net property, plant and equipment, equity and cost investments, goodwill and other intangible assets. Assets not attributed to reportable operating segments 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 Corporate and Other segment for the fiscal years ended October 2, 2022, October 3, 2021 and September 27, 2020.

(in millions)	North America		International		Channel Development		Corporate and Other		Total
Fiscal 2022
Total net revenues	$	23,370.8	$	6,940.1	$	1,843.6	$	95.8	$	32,250.3
Depreciation and amortization expenses	808.4		513.0		0.1		126.4		1,447.9
Income from equity investees	—		2.3		231.8		—		234.1
Operating income/(loss)	4,486.5		833.2		817.3		(1,519.2)		4,617.8
Total assets	$	10,029.9	$	8,602.8	$	130.5	$	9,215.2	$	27,978.4
Fiscal 2021
Total net revenues	$	20,447.9	$	6,921.6	$	1,593.6	$	97.5	$	29,060.6
Depreciation and amortization expenses	753.9		544.7		1.2		141.9		1,441.7
Income from equity investees	—		135.3		250.0		—		385.3
Operating income/(loss)	4,259.3		1,245.7		789.1		(1,422.0)		4,872.1
Total assets	$	10,571.8	$	10,083.3	$	125.4	$	10,612.1	$	31,392.6
Fiscal 2020
Total net revenues(1)	$	16,296.2	$	5,230.6	$	1,925.0	$	66.2	$	23,518.0
Depreciation and amortization expenses	762.0		518.4		1.2		149.7		1,431.3
Income from equity investees	—		102.3		220.2		—		322.5
Operating income/(loss)(1)	1,801.7		370.6		687.2		(1,297.8)		1,561.7
Total assets	$	10,717.4	$	9,449.7	$	165.0	$	9,042.4	$	29,374.5

(1)     North America, International and Corporate and Other total net revenues and operating income/(loss) for fiscal year ended September 27, 2020 have been restated to conform with current period presentation.