Segment Reporting

12 Months Ended

Oct. 01, 2023

Segment Reporting [Abstract]

Segment Reporting

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.

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 beverage sales 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 1, 2023				Oct 2, 2022				Oct 3, 2021
Beverage(1)	$	21,684.8	60	%	$	19,555.3	61	%	$	18,317.0	63	%
Food(2)	6,585.1		18	%	5,804.2		18	%	5,053.4		17	%
Other(3)	7,705.7		22	%	6,890.8		21	%	5,690.2		20	%
Total	$	35,975.6	100	%	$	32,250.3	100	%	$	29,060.6	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 and serveware, among other items.

Information by geographic area (in millions):

Fiscal Year Ended	Oct 1, 2023		Oct 2, 2022		Oct 3, 2021
Net revenues:
United States	$	26,398.3	$	23,365.6	$	20,377.8
China	3,081.5		3,008.3		3,674.8
Other countries	6,495.8		5,876.4		5,008.0
Total	$	35,975.6	$	32,250.3	$	29,060.6
			Oct 1, 2023		Oct 2, 2022
Long-lived assets:
United States			$	14,011.4	$	13,176.2
China			4,244.9		4,174.0
Other countries			3,885.8		3,609.5
Total			$	22,142.1	$	20,959.7

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 71% of net revenues from other countries for fiscal 2023.

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 financial information below is presented for our reportable operating segments and Corporate and Other for the fiscal years ended October 1, 2023, October 2, 2022 and October 3, 2021 and as of October 1, 2023 and October 2, 2022.

(in millions)	North America		International		Channel Development		Corporate and Other		Total
Fiscal 2023
Total net revenues	$	26,569.6	$	7,487.6	$	1,893.8	$	24.6	$	35,975.6
Depreciation and amortization expenses	910.1		335.1		0.1		117.3		1,362.6
Income from equity investees	—		2.7		295.7		—		298.4
Operating income/(loss)	$	5,495.7	$	1,230.9	$	967.6	$	(1,823.4)	$	5,870.8
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
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
(in millions)	North America		International		Channel Development		Corporate and Other		Total
Total assets at October 1, 2023	$	10,869.1	$	8,045.3	$	188.8	$	10,342.3	$	29,445.5
Total assets at October 2, 2022	10,029.9		8,602.8		130.5		9,215.2		27,978.4