UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM 8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the
Securities
and Exchange Act of 1934
Date
of Report (Date of earliest event reported): November 3, 2011
STARBUCKS
CORPORATION
(Exact Name of Registrant as Specified in its
Charter)
Washington |
0-20322 |
91-1325671 |
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
2401 Utah Avenue South, Seattle, Washington 98134
(Address of
Principal Executive Offices)
(206) 447-1575
(Registrant’s
Telephone Number, including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On November 3, 2011, Starbucks Corporation (“Starbucks” or the “Company”) issued a press release announcing its financial results for the fourth quarter and fiscal year ended October 2, 2011. A copy of the press release is attached as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. |
Description |
|
99.1 |
Earnings release of Starbucks Corporation dated November 3, 2011 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
STARBUCKS CORPORATION |
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|
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Dated: |
November 3, 2011 |
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|
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By: |
/s/ Troy Alstead |
|
Troy Alstead |
||||
chief financial officer and chief |
||||
administrative officer |
EXHIBIT INDEX
Exhibit No. |
Description |
|
99.1 |
Earnings release of Starbucks Corporation dated November 3, 2011 |
Exhibit 99.1
Starbucks Reports Record Fourth Quarter and Record Fiscal 2011 Results
U.S. Comparable Store Sales Increase 10% in Q4; Global Comparable Store Sales Increase 9%
Total Net Revenues Grow 15% in the Quarter on a Comparative 13-Week Basis
Q4 EPS Totals $0.47; Q4 EPS Increases 16% to a Record $0.37 Excluding Non-Routine Items
Board Raises Quarterly Cash Dividend by 31% on Strength of Business and Outlook
SEATTLE--(BUSINESS WIRE)--November 3, 2011--Starbucks Corporation (NASDAQ:SBUX) today reported financial results for its 13-week fiscal fourth quarter and 52-week fiscal year ended October 2, 2011. These results include the impact of non-routine gains related to the sale of corporate real estate and the acquisition of the company’s joint venture operations in Switzerland and Austria. The comparable prior-year periods included 14 and 53 weeks, respectively, as fiscal 2010 contained an extra week. In addition, fiscal 2010 results also included the impact of restructuring charges. A reconciliation of select GAAP measures to non-GAAP measures is available at the end of this document.
Fiscal Fourth Quarter 2011 Highlights:
Full-Year 2011 Highlights:
“Fiscal 2011 was an extraordinary year in which Starbucks reported record earnings every quarter, and for the full year, and very strong comp store sales growth all around the world,” said Howard Schultz, chairman, president and ceo. “Starbucks today is executing in all markets and across all channels, and we have never been better positioned to go hard and go fast after the tremendous opportunity that lies ahead in 2012 and beyond,” Schultz added.
"The record results we reported today for the fourth quarter and the full fiscal year are a testament to the overall health and strength of our global business,” commented Troy Alstead, cfo. “The momentum we have built throughout the year continued in the fourth quarter, with the strength of same store sales growth demonstrating that our product innovation and overall store experience are resonating extremely well with our customers. As a result of the strong finish to fiscal 2011, Starbucks entered the new fiscal year well positioned to continue pursuing significant profitable growth opportunities.”
Fourth Quarter Fiscal 2011 Summary |
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Quarter Ended Oct 2, 2011 | ||||||||||||||||
Comparable Store Sales(1) | Sales Growth | Change in Transactions | Change in Ticket | |||||||||||||
Consolidated | 9 | % | 6 | % | 3 | % | ||||||||||
United States | 10 | % | 7 | % | 3 | % | ||||||||||
International | 6 | % | 5 | % | 0 | % | ||||||||||
(1) Comparable store sales growth was calculated excluding the additional week in September 2010. |
||||||||||||||||
Operating Results | Quarter Ended | ||||||||
($ in millions, except per share amounts) | Oct 2, 2011 | Oct 3, 2010 | Change | ||||||
Net New Stores(1) |
(15) | 121 | (136) | ||||||
Revenues | $3,031.9 | $2,838.0 | 7% | ||||||
Operating Income | $448.3 | $399.3 | 12% | ||||||
Operating Margin | 14.8% | 14.1% |
70 |
bps |
|||||
EPS | $0.47 | $0.37 | 27% | ||||||
(1) Net new stores for the fourth quarter of fiscal 2011 includes the closure of 248 licensed Seattle's Best Coffee locations in Borders Bookstores. |
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Consolidated net revenues were a record $3.0 billion in Q4 FY11, an increase of 7% over Q4 FY10. Excluding the impact of the extra week in Q4 FY10, consolidated net revenues increased approximately 15% in Q4 FY11. The increase was primarily due to a 9% increase in global comparable stores sales, growth in CPG revenues and the favorable impact of foreign currency exchange. The 9% increase in comparable store sales was comprised of a 6% increase in the number of transactions and a 3% increase in average ticket.
Consolidated operating income increased to $448.3 million in Q4 FY11, compared to $399.3 million for the same period a year ago. Operating margin expanded 70 basis points to 14.8% in Q4 FY11 compared to 14.1% in the prior-year period. Excluding the non-routine gain in Q4 FY11 and the impact of restructuring and the extra week in Q4 FY10, operating margin expanded 60 basis points to 13.8% from 13.2%. This improvement was primarily due to increased sales leverage, partially offset by higher commodity costs. The increase in commodity costs, primarily coffee, negatively impacted operating margin in the quarter by approximately 290 basis points and EPS by $0.07.
Q4 U.S. Segment Results |
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Quarter Ended | |||||||||||
($ in millions) | Oct 2, 2011 | Oct 3, 2010 | Change | ||||||||
Revenues | $2,029.8 | $1,973.6 | 3% | ||||||||
Operating Income | $374.2 | $342.2 | 9% | ||||||||
Operating Margin | 18.4% | 17.3% | 110 | bps | |||||||
U.S. net revenues were $2.0 billion in Q4 FY11, an increase of 3% over Q4 FY10. Excluding the impact of the extra week in Q4 FY10, U.S. net revenues increased approximately 11% in Q4 FY11. The increase was primarily due to a 10% increase in comparable store sales. The 10% increase in comparable stores sales was comprised of a 7% increase in the number of transactions and a 3% increase in average ticket.
U.S. operating income increased to $374.2 million in Q4 FY11, compared to $342.2 million for the same period a year ago. Operating margin expanded 110 basis points to 18.4% in Q4 FY11 compared to 17.3% in the prior-year period. Excluding the impact of restructuring charges and the extra week in Q4 FY10, operating margin expanded 210 basis points to 18.4% from 16.3%. The improvement was primarily due to increased sales leverage, partially offset by higher coffee costs.
Q4 International Segment Results |
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Quarter Ended | |||||||||||
($ in millions) | Oct 2, 2011 | Oct 3, 2010 | Change | ||||||||
Revenues | $717.9 | $619.3 | 16% | ||||||||
Operating Income | $93.0 | $85.7 | 9% | ||||||||
Operating Margin | 13.0% | 13.8% | (80) |
bps |
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International net revenues were a record $717.9 million in Q4 FY11, an increase of 16% over Q4 FY10. Excluding the impact of the extra week in Q4 FY10, International net revenues increased approximately 25% in Q4 FY11. The increase was due to the favorable impact of foreign currency exchange, a 6% increase in comparable store sales, and the consolidation of the Switzerland and Austria markets. The 6% increase in comparable stores sales was the result of a 5% increase in the number of transactions.
International operating income increased to $93.0 million in Q4 FY11, compared to $85.7 million for the same period a year ago. Operating margin was 13.0% in Q4 FY11 compared to 13.8% in the prior-year period. Excluding the impact of restructuring charges and the extra week in Q4 FY10, operating margin contracted 40 basis points to 13.0% from 13.4%. The margin contraction was primarily driven by higher coffee costs, partially offset by sales leverage.
Q4 Global Consumer Products Group Segment Results |
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Quarter Ended | |||||||||||
($ in millions) | Oct 2, 2011 | Oct 3, 2010 | Change | ||||||||
Revenues | $242.2 | $201.3 | 20% | ||||||||
Operating Income | $76.1 | $79.3 | -4% | ||||||||
Operating Margin | 31.4% | 39.4% | (800) | bps | |||||||
CPG net revenues were a record $242.2 million in Q4 FY11, an increase of 20% over Q4 FY10. Excluding the impact of the extra week in Q4 FY10, CPG net revenues increased approximately 31% in Q4 FY11. The increase was primarily due to the benefit of recognizing the full revenue from packaged coffee and tea sales under the direct distribution model.
CPG operating income was $76.1 million in Q4 FY11 compared to $79.3 million for the same period a year ago. Operating margin was 31.4% in Q4 FY11 compared to 39.4% in the prior-year period. The margin contraction was primarily due to higher coffee costs.
Full-Year Financial Results |
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Year Ended Oct 2, 2011 | ||||||||
Comparable Store Sales(1) |
Sales Growth | Change in Transactions | Change in Ticket | |||||
Consolidated | 8% | 6% | 2% | |||||
United States | 8% | 6% | 2% | |||||
International | 5% | 4% | 1% | |||||
(1) Comparable store sales growth was calculated excluding the additional week in September 2010. |
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Year Ended | |||||||||
($ in millions, except per share amounts) | Oct 2, 2011 | Oct 3, 2010 | Change | ||||||
Net New Stores(1) | 145 | 223 | (78) | ||||||
Revenues | $11,700.4 | $10,707.4 | 9% | ||||||
Operating Income | $1,728.5 | $1,419.4 | 22% | ||||||
Operating Margin | 14.8% | 13.3% | 150 | bps | |||||
EPS | $1.62 | $1.24 | 31% | ||||||
(1) Net new stores for the full year ending October 2, 2011 includes the closure of 475 licensed Seattle's Best Coffee locations in Borders Bookstores. |
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Consolidated net revenues were a record $11.7 billion in FY11, an increase of 9% over FY10. Excluding the impact of the extra week in FY10, consolidated net revenues increased approximately 11% in FY11. The increase was primarily due to an 8% increase in global comparable stores sales and growth in CPG revenues. The 8% increase in comparable store sales was comprised of a 6% increase in the number of transactions and a 2% increase in average ticket.
Consolidated operating income was $1.7 billion in FY11, compared to $1.4 billion in FY10. Operating margin expanded 150 basis points to 14.8% in FY11 compared to 13.3% in FY10. Excluding the non-routine gain in FY11 and the impact of restructuring charges and the extra week in FY10, operating margin expanded 100 basis points to 14.5% from 13.5%. This improvement was primarily due to sales leverage, partially offset by higher commodity costs. The increase in commodity costs, primarily coffee, negatively impacted operating margin in the year by approximately 220 basis points and EPS by $0.20.
Fiscal 2012 Targets
Starbucks has updated its fiscal 2012 targets as follows:
Company Updates
Conference Call
Starbucks will be holding a conference call today at 2:00 p.m. Pacific Time, which will be hosted by Howard Schultz, chairman, president and ceo, and Troy Alstead, cfo. The call will be broadcast live over the Internet and can be accessed at the company’s web site address of http://investor.starbucks.com. A replay of the call will be available via telephone through 9:00 p.m. Pacific Time on Friday, November 4, 2011 by calling 855-859-2056, reservation number 51273805. A replay of the call will also be available via the Investor Relations page on Starbucks.com through approximately 5:00 p.m. Pacific Time on Friday, December 2, 2011 at the following URL: http://investor.starbucks.com.
The company’s consolidated statements of earnings, operating segment results, and other additional information have been provided on the following pages in accordance with current year classifications. This information should be reviewed in conjunction with this press release. Please refer to the company’s Annual Report on Form 10-K for the fiscal year ended October 3, 2010 for additional information.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting the highest quality arabica coffee in the world. Today, with stores around the globe, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at www.starbucks.com.
Forward-Looking Statements
This release contains forward-looking statements relating to certain company initiatives, strategies and plans, as well as trends in or expectations regarding, earnings per share, revenues, operational improvements, changes to the organizational and leadership structures, business momentum, sales leverage, store traffic, average ticket, operating margins, profits, comparable store sales, store openings and closings, restructuring charges, capital expenditures, growth opportunities, the strength, health and potential of our business and brand, product innovations and store experience, tax rate and commodity costs and their impact. These forward-looking statements are based on currently available operating, financial and competitive information and are subject to a number of significant risks and uncertainties. Actual future results may differ materially depending on a variety of factors including, but not limited to, coffee, dairy and other raw material prices and availability, costs associated with, and the successful execution of, the company’s initiatives, strategies and plans, fluctuations in U.S. and international economies and currencies, the impact of competition, the effect of legal proceedings, and other risks detailed in the company filings with the Securities and Exchange Commission, including the “Risk Factors” section of Starbucks Annual Report on Form 10-K for the fiscal year ended October 3, 2010. The company assumes no obligation to update any of these forward-looking statements.
STARBUCKS CORPORATION | |||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS | |||||||||||||||||||||||
(unaudited, in millions, except per share data) | |||||||||||||||||||||||
Quarter Ended | Quarter Ended | ||||||||||||||||||||||
October 2, | October 3, | % | October 2, | October 3, | |||||||||||||||||||
2011 | 2010 | Change | 2011 | 2010 | |||||||||||||||||||
As a % of total net revenues | |||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||
Company-operated stores | $ | 2,470.4 | $ | 2,355.0 | 4.9 |
% |
|
81.5 |
% |
|
83.0 |
% |
|
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Licensed stores | 266.8 | 234.3 | 13.9 | 8.8 | 8.3 | ||||||||||||||||||
CPG, foodservice and other | 294.7 | 248.7 | 18.5 | 9.7 | 8.8 | ||||||||||||||||||
Total net revenues | 3,031.9 | 2,838.0 | 6.8 | 100.0 | 100.0 | ||||||||||||||||||
Cost of sales including occupancy costs | 1,322.3 | 1,172.6 | 12.8 | 43.6 | 41.3 | ||||||||||||||||||
Store operating expenses | 939.8 | 938.4 | 0.1 | 31.0 | 33.1 | ||||||||||||||||||
Other operating expenses | 105.9 | 82.3 | 28.7 | 3.5 | 2.9 | ||||||||||||||||||
Depreciation and amortization expenses | 137.1 | 126.1 | 8.7 | 4.5 | 4.4 | ||||||||||||||||||
General and administrative expenses | 165.4 | 160.9 | 2.8 | 5.5 | 5.7 | ||||||||||||||||||
Restructuring charges |
- |
6.4 | (100.0 | ) | - | 0.2 | |||||||||||||||||
Total operating expenses | 2,670.5 | 2,486.7 | 7.4 | 88.1 | 87.6 | ||||||||||||||||||
Gain on sale of properties | 30.2 |
- |
nm | 1.0 | - | ||||||||||||||||||
Income from equity investees | 56.7 | 48.0 | 18.1 | 1.9 | 1.7 | ||||||||||||||||||
Operating income | 448.3 | 399.3 | 12.3 | 14.8 | 14.1 | ||||||||||||||||||
Interest income and other, net | 65.7 | 21.9 | 200.0 | 2.2 | 0.8 | ||||||||||||||||||
Interest expense | (9.8 | ) | (8.6 | ) | 14.0 | (0.3 | ) | (0.3 | ) | ||||||||||||||
Earnings before income taxes | 504.2 | 412.6 | 22.2 | 16.6 | 14.5 | ||||||||||||||||||
Income taxes | 145.9 | 134.1 | 8.8 | 4.8 | 4.7 | ||||||||||||||||||
Net earnings including noncontrolling interest | 358.3 | 278.5 | 28.7 | 11.8 | 9.8 | ||||||||||||||||||
Net earnings attributable to noncontrolling interest | (0.2 | ) | (0.4 | ) | (50.0 | ) | (0.0 | ) | (0.0 | ) | |||||||||||||
Net earnings attributable to Starbucks | $ | 358.5 | $ | 278.9 | 28.5 |
% |
|
11.8 |
% |
|
9.8 |
% |
|
||||||||||
Net earnings per common share - diluted | $ | 0.47 | $ | 0.37 | 27.0 |
% |
|
||||||||||||||||
Weighted avg. shares outstanding - diluted | 768.5 | 760.9 | |||||||||||||||||||||
Cash dividends declared per share | $ | 0.17 | $ | 0.13 | |||||||||||||||||||
Supplemental Ratios: | |||||||||||||||||||||||
Store operating expenses as a percentage of company-operated stores revenue | 38.0 |
% |
|
39.8 |
% |
|
|||||||||||||||||
Effective tax rate including noncontrolling interest | 28.9 |
% |
|
32.5 |
% |
|
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STARBUCKS CORPORATION | ||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||||||||||||||
(unaudited, in millions, except per share data) | ||||||||||||||||||||||||
Year Ended | Year Ended | |||||||||||||||||||||||
October 2, | October 3, | % | October 2, | October 3, | ||||||||||||||||||||
2011 | 2010 | Change | 2011 | 2010 | ||||||||||||||||||||
As a % of total net revenues | ||||||||||||||||||||||||
Net revenues: | ||||||||||||||||||||||||
Company-operated stores | $ | 9,632.4 | $ | 8,963.5 | 7.5 |
% |
|
82.3 |
% |
|
83.7 |
% |
|
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Licensed stores | 1,007.5 | 875.2 | 15.1 | 8.6 | 8.2 | |||||||||||||||||||
CPG, foodservice and other | 1,060.5 | 868.7 | 22.1 | 9.1 | 8.1 | |||||||||||||||||||
Total net revenues | 11,700.4 | 10,707.4 | 9.3 | 100.0 | 100.0 | |||||||||||||||||||
Cost of sales including occupancy costs | 4,949.3 | 4,458.6 | 11.0 | 42.3 | 41.6 | |||||||||||||||||||
Store operating expenses | 3,665.1 | 3,551.4 | 3.2 | 31.3 | 33.2 | |||||||||||||||||||
Other operating expenses | 402.0 | 293.2 | 37.1 | 3.4 | 2.7 | |||||||||||||||||||
Depreciation and amortization expenses | 523.3 | 510.4 | 2.5 | 4.5 | 4.8 | |||||||||||||||||||
General and administrative expenses | 636.1 | 569.5 | 11.7 | 5.4 | 5.3 | |||||||||||||||||||
Restructuring charges | - | 53.0 | (100.0 | ) | - | 0.5 | ||||||||||||||||||
Total operating expenses | 10,175.8 | 9,436.1 | 7.8 | 87.0 | 88.1 | |||||||||||||||||||
Gain on sale of properties | 30.2 |
- |
nm | 0.3 | - | |||||||||||||||||||
Income from equity investees | 173.7 | 148.1 | 17.3 | 1.5 | 1.4 | |||||||||||||||||||
Operating income | 1,728.5 | 1,419.4 | 21.8 | 14.8 | 13.3 | |||||||||||||||||||
Interest income and other, net | 115.9 | 50.3 | 130.4 | 1.0 | 0.5 | |||||||||||||||||||
Interest expense | (33.3 | ) | (32.7 | ) | 1.8 | (0.3 | ) | (0.3 | ) | |||||||||||||||
Earnings before income taxes | 1,811.1 | 1,437.0 | 26.0 | 15.5 | 13.4 | |||||||||||||||||||
Income taxes | 563.1 | 488.7 | 15.2 | 4.8 | 4.6 | |||||||||||||||||||
Net earnings including noncontrolling interest | 1,248.0 | 948.3 | 31.6 | 10.7 | 8.9 | |||||||||||||||||||
Net earnings (loss) attributable to noncontrolling interest | 2.3 |
|
2.7 | (14.8 | ) | 0.0 | 0.0 | |||||||||||||||||
Net earnings attributable to Starbucks | $ | 1,245.7 | $ | 945.6 | 31.7 |
% |
|
10.6 |
% |
|
8.8 |
% |
|
|||||||||||
Net earnings per common share - diluted | $ | 1.62 | $ | 1.24 | 30.6 |
% |
|
|||||||||||||||||
Weighted avg. shares outstanding - diluted | 769.7 | 764.2 | ||||||||||||||||||||||
Cash dividends declared per share | $ | 0.56 | $ | 0.36 | ||||||||||||||||||||
Supplemental Ratios: | ||||||||||||||||||||||||
Store operating expenses as a percentage of company-operated stores revenue | 38.0 |
% |
|
39.6 |
% |
|
||||||||||||||||||
Effective tax rate including noncontrolling interest | 31.1 |
% |
|
34.0 |
% |
|
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Segment Results
The tables below present reportable segment results net of intersegment eliminations (in millions):
United States | October 2, | October 3, | % | October 2, | October 3, | ||||||||||||||
2011 | 2010 | Change | 2011 | 2010 | |||||||||||||||
Quarter Ended |
As a % of US total net |
||||||||||||||||||
Net revenues: | |||||||||||||||||||
Company-operated stores | $ | 1,874.9 | $ | 1,836.8 | 2.1 |
% |
|
92.4 | % | 93.1 | % | ||||||||
Licensed stores | 154.8 | 136.7 | 13.2 | 7.6 | 6.9 | ||||||||||||||
Other | 0.1 | 0.1 | - | - | - | ||||||||||||||
Total net revenues | 2,029.8 | 1,973.6 | 2.8 | 100.0 | 100.0 | ||||||||||||||
Cost of sales including occupancy costs | 796.7 | 750.9 | 6.1 | 39.3 | 38.0 | ||||||||||||||
Store operating expenses | 734.0 | 753.7 | (2.6 | ) | 36.2 | 38.2 | |||||||||||||
Other operating expenses | 16.6 | 14.2 | 16.9 | 0.8 | 0.7 | ||||||||||||||
Depreciation and amortization expenses | 86.0 | 86.4 | (0.5 | ) | 4.2 | 4.4 | |||||||||||||
General and administrative expenses | 22.3 | 25.1 | (11.2 | ) | 1.1 | 1.3 | |||||||||||||
Restructuring charges | - | 1.1 | (100.0 | ) | - | 0.1 | |||||||||||||
Total operating expenses | 1,655.6 | 1,631.4 | 1.5 | 81.6 | 82.7 | ||||||||||||||
Operating income | $ | 374.2 | $ | 342.2 | 9.4 |
% |
|
18.4 | % | 17.3 | % | ||||||||
Supplemental Ratios: | |||||||||||||||||||
Store operating expenses as a percentage of company-operated stores revenue | 39.1 | % | 41.0 | % | |||||||||||||||
Year Ended |
|||||||||||||||||||
Net revenues: | |||||||||||||||||||
Company-operated stores | $ | 7,447.0 | $ | 7,031.8 | 5.9 |
% |
|
92.6 | % | 93.0 | % | ||||||||
Licensed stores | 590.4 | 524.0 | 12.7 | 7.3 | 6.9 | ||||||||||||||
Other | 0.6 | 4.6 | (87.0 | ) | 0.0 | 0.1 | |||||||||||||
Total net revenues | 8,038.0 | 7,560.4 | 6.3 | 100.0 | 100.0 | ||||||||||||||
Cost of sales including occupancy costs | 3,093.9 | 2,906.1 | 6.5 | 38.5 | 38.4 | ||||||||||||||
Store operating expenses | 2,891.3 | 2,831.9 | 2.1 | 36.0 | 37.5 | ||||||||||||||
Other operating expenses | 62.7 | 55.6 | 12.8 | 0.8 | 0.7 | ||||||||||||||
Depreciation and amortization expenses | 343.8 | 350.7 | (2.0 | ) | 4.3 | 4.6 | |||||||||||||
General and administrative expenses | 83.7 | 97.8 | (14.4 | ) | 1.0 | 1.3 | |||||||||||||
Restructuring charges | - | 27.2 | (100.0 | ) | - | 0.4 | |||||||||||||
Total operating expenses | 6,475.4 | 6,269.3 | 3.3 | 80.6 | 82.9 | ||||||||||||||
Operating income | $ | 1,562.6 | $ | 1,291.1 | 21.0 |
% |
|
19.4 | % | 17.1 | % | ||||||||
Supplemental Ratios: | |||||||||||||||||||
Store operating expenses as a percentage of company-operated stores revenue | 38.8 | % | 40.3 | % | |||||||||||||||
International | October 2, | October 3, | % | October 2, | October 3, | |||||||||||||||
2011 | 2010 | Change | 2011 | 2010 | ||||||||||||||||
Quarter Ended |
As a % of International
total net revenues |
|||||||||||||||||||
Net revenues: | ||||||||||||||||||||
Company-operated stores | $ | 595.5 | $ | 518.2 | 14.9 |
% |
|
83.0 | % | 83.7 | % | |||||||||
Licensed stores | 108.5 | 88.2 | 23.0 | 15.1 | 14.2 | |||||||||||||||
Foodservice | 13.9 | 12.9 | 7.8 | 1.9 | 2.1 | |||||||||||||||
Total net revenues | 717.9 | 619.3 | 15.9 | 100.0 | 100.0 | |||||||||||||||
Cost of sales including occupancy costs | 356.3 | 283.7 | 25.6 | 49.6 | 45.8 | |||||||||||||||
Store operating expenses | 205.8 | 184.7 | 11.4 | 28.7 | 29.8 | |||||||||||||||
Other operating expenses | 26.3 | 24.5 | 7.3 | 3.7 | 4.0 | |||||||||||||||
Depreciation and amortization expenses | 33.1 | 26.8 | 23.5 | 4.6 | 4.3 | |||||||||||||||
General and administrative expenses | 34.0 | 32.5 | 4.6 | 4.7 | 5.2 | |||||||||||||||
Restructuring charges | - | 5.3 |
(100.0 |
) |
|
- | 0.9 | |||||||||||||
Total operating expenses | 655.5 | 557.5 | 17.6 | 91.3 | 90.0 | |||||||||||||||
Income from equity investees | 30.6 | 23.9 | 28.0 | 4.3 | 3.9 | |||||||||||||||
Operating income | $ | 93.0 | $ | 85.7 | 8.5 |
% |
|
13.0 | % | 13.8 | % | |||||||||
Supplemental Ratios: | ||||||||||||||||||||
Store operating expenses as a percentage of company-operated stores revenue | 34.6 | % | 35.6 | % | ||||||||||||||||
Year Ended |
||||||||||||||||||||
Net revenues: | ||||||||||||||||||||
Company-operated stores | $ | 2,185.4 | $ | 1,931.7 | 13.1 |
% |
|
83.2 | % | 84.4 | ||||||||||
Licensed stores | 389.4 | 310.5 | 25.4 | 14.8 | 13.6 | |||||||||||||||
Foodservice | 51.3 | 46.6 | 10.1 | 2.0 | 2.0 | |||||||||||||||
Total net revenues | 2,626.1 | 2,288.8 | 14.7 | 100.0 | 100.0 | |||||||||||||||
Cost of sales including occupancy costs | 1,259.8 | 1,078.2 | 16.8 | 48.0 | 47.1 | |||||||||||||||
Store operating expenses | 773.8 | 719.5 | 7.5 | 29.5 | 31.4 | |||||||||||||||
Other operating expenses | 91.9 | 85.7 | 7.2 | 3.5 | 3.7 | |||||||||||||||
Depreciation and amortization expenses | 118.5 | 108.6 | 9.1 | 4.5 | 4.7 | |||||||||||||||
General and administrative expenses | 132.9 | 126.6 | 5.0 | 5.1 | 5.5 | |||||||||||||||
Restructuring charges | - | 25.8 |
(100.0 |
) |
|
- | 1.1 | |||||||||||||
Total operating expenses | 2,376.9 | 2,144.4 | 10.8 | 90.5 | 93.7 | |||||||||||||||
Income from equity investees | 100.5 | 80.8 | 24.4 | 3.8 | 3.5 | |||||||||||||||
Operating income | $ | 349.7 | $ | 225.2 | 55.3 |
% |
|
13.3 | % | 9.8 | % | |||||||||
Supplemental Ratios: | ||||||||||||||||||||
Store operating expenses as a percentage of company-operated stores revenue | 35.4 | % | 37.2 | % | ||||||||||||||||
Global CPG | October 2, | October 3, | % | October 2, | October 3, | |||||||||||||||
2011 | 2010 | Change | 2011 | 2010 | ||||||||||||||||
Quarter Ended |
As a % of CPG
total net revenues |
|||||||||||||||||||
Net revenues: | ||||||||||||||||||||
CPG | $ | 162.2 | $ | 127.2 | 27.5 |
% |
|
67.0 | % | 63.2 | % | |||||||||
Foodservice | 80.0 | 74.1 | 8.0 | 33.0 | 36.8 | |||||||||||||||
Total net revenues | 242.2 | 201.3 | 20.3 | 100.0 | 100.0 | |||||||||||||||
Cost of sales | 141.4 | 110.6 | 27.8 | 58.4 | 54.9 | |||||||||||||||
Other operating expenses | 47.5 | 34.2 | 38.9 | 19.6 | 17.0 | |||||||||||||||
Depreciation and amortization expenses | 0.5 | 0.8 | (37.5 | ) | 0.2 | 0.4 | ||||||||||||||
General and administrative expenses | 3.8 | 2.5 | 52.0 | 1.6 | 1.2 | |||||||||||||||
Total operating expenses | 193.2 | 148.1 | 30.5 | 79.8 | 73.6 | |||||||||||||||
Income from equity investees | 27.1 | 26.1 | 3.8 | 11.2 | 13.0 | |||||||||||||||
Operating income | $ | 76.1 | $ | 79.3 | (4.0 | ) | % | 31.4 | % | 39.4 | % | |||||||||
Year Ended |
||||||||||||||||||||
Net revenues: | ||||||||||||||||||||
CPG | $ | 553.2 | $ | 425.6 | 30.0 |
% |
|
64.3 | % | 60.2 | % | |||||||||
Foodservice | 307.3 | 281.8 | 9.0 | 35.7 | 39.8 | |||||||||||||||
Total net revenues | 860.5 | 707.4 | 21.6 | 100.0 | 100.0 | |||||||||||||||
Cost of sales | 492.5 | 384.9 | 28.0 | 57.2 | 54.4 | |||||||||||||||
Other operating expenses | 153.9 | 117.0 | 31.5 | 17.9 | 16.5 | |||||||||||||||
Depreciation and amortization expenses | 2.4 | 3.7 | (35.1 | ) | 0.3 | 0.5 | ||||||||||||||
General and administrative expenses | 14.3 | 11.0 | 30.0 | 1.7 | 1.6 | |||||||||||||||
Total operating expenses | 663.1 | 516.6 | 28.4 | 77.1 | 73.0 | |||||||||||||||
Income from equity investees | 75.6 | 70.6 | 7.1 | 8.8 | 10.0 | |||||||||||||||
Operating income | $ | 273.0 | $ | 261.4 | 4.4 |
% |
|
31.7 | % | 37.0 | % | |||||||||
Other | October 2, | October 3, | % | ||||||||||||||
2011 | 2010 | Change | |||||||||||||||
Quarter Ended |
|||||||||||||||||
Net revenues: | |||||||||||||||||
Licensed stores | $ | 3.5 | $ | 9.4 | (62.8 | ) | % | ||||||||||
CPG, Foodservice and other | 38.5 | 34.4 | 11.9 | ||||||||||||||
Total net revenues | 42.0 | 43.8 | (4.1 | ) | |||||||||||||
Cost of sales | 27.9 | 27.4 | 1.8 | ||||||||||||||
Other operating expenses | 15.5 | 9.4 | 64.9 | ||||||||||||||
Depreciation and amortization expenses | 17.5 | 12.1 | 44.6 | ||||||||||||||
General and administrative expenses | 105.3 | 100.8 | 4.5 | ||||||||||||||
Total operating expenses | 166.2 | 149.7 | 11.0 | ||||||||||||||
Gain on sale of properties | 30.2 | 0.0 | nm | ||||||||||||||
Income from equity investees | (1.0 | ) | (2.0 | ) | (50.0 | ) | |||||||||||
Operating loss | $ | (95.0 | ) | $ | (107.9 | ) | (12.0 | ) | % | ||||||||
Year Ended |
|||||||||||||||||
Net revenues: | |||||||||||||||||
Licensed stores | $ | 27.7 | $ | 40.7 | (31.9 | ) | % | ||||||||||
CPG, Foodservice and other | 148.1 | 110.1 | 34.5 | ||||||||||||||
Total net revenues | 175.8 | 150.8 | 16.6 | ||||||||||||||
Cost of sales | 103.1 | 89.4 | 15.3 | ||||||||||||||
Other operating expenses | 93.5 | 34.9 | 167.9 | ||||||||||||||
Depreciation and amortization expenses | 58.6 | 47.4 | 23.6 | ||||||||||||||
General and administrative expenses | 405.2 | 334.1 | 21.3 | ||||||||||||||
Total operating expenses | 660.4 | 505.8 | 30.6 | ||||||||||||||
Gain on sale of properties | 30.2 | 0.0 | nm | ||||||||||||||
Income from equity investees | (2.4 | ) | (3.3 | ) | (27.3 | ) | |||||||||||
Operating loss | $ | (456.8 | ) | $ | (358.3 | ) | 27.5 | % | |||||||||
STARBUCKS CORPORATION | ||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||
(in millions, except per share data) | ||||||||||||
(unaudited) | ||||||||||||
October 2, | October 3, | |||||||||||
2011 | 2010 | |||||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 1,148.1 | $ | 1,164.0 | ||||||||
Short-term investments - available-for-sale securities | 855.0 | 236.5 | ||||||||||
Short-term investments - trading securities | 47.6 | 49.2 | ||||||||||
Accounts receivable, net | 386.5 | 302.7 | ||||||||||
Inventories | 965.8 | 543.3 | ||||||||||
Prepaid expenses and other current assets | 161.5 | 156.5 | ||||||||||
Deferred income taxes, net | 230.4 | 304.2 | ||||||||||
Total current assets | 3,794.9 | 2,756.4 | ||||||||||
Long-term investments – available-for-sale securities | 107.0 | 191.8 | ||||||||||
Equity and other investments | 372.3 | 341.5 | ||||||||||
Property, plant and equipment, net | 2,355.0 | 2,416.5 | ||||||||||
Other assets | 297.7 | 346.5 | ||||||||||
Other intangible assets | 111.9 | 70.8 | ||||||||||
Goodwill | 321.6 | 262.4 | ||||||||||
TOTAL ASSETS | $ | 7,360.4 | $ | 6,385.9 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable | 540.0 | 282.6 | ||||||||||
Accrued compensation and related costs | 364.4 | 400.0 | ||||||||||
Accrued occupancy costs | 148.3 | 173.2 | ||||||||||
Accrued taxes | 109.2 | 100.2 | ||||||||||
Insurance reserves | 145.6 | 146.2 | ||||||||||
Other accrued liabilities | 319.0 | 262.8 | ||||||||||
Deferred revenue | 449.3 | 414.1 | ||||||||||
Total current liabilities |
2,075.8 | 1,779.1 | ||||||||||
Long-term debt | 549.5 | 549.4 | ||||||||||
Other long-term liabilities | 347.8 | 375.1 | ||||||||||
Total liabilities | 2,973.1 | 2,703.6 | ||||||||||
Shareholders’ equity: | ||||||||||||
Common stock ($0.001 par value) - authorized, 1,200 shares; issued |
0.7 | 0.7 | ||||||||||
Additional paid-in-capital | 1.1 | 106.2 | ||||||||||
Other additional paid-in-capital | 39.4 | 39.4 | ||||||||||
Retained earnings | 4,297.4 | 3,471.2 | ||||||||||
Accumulated other comprehensive income | 46.3 | 57.2 | ||||||||||
Total shareholders’ equity | 4,384.9 | 3,674.7 | ||||||||||
Noncontrolling interests | 2.4 | 7.6 | ||||||||||
Total equity | 4,387.3 | 3,682.3 | ||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 7,360.4 | $ | 6,385.9 | ||||||||
STARBUCKS CORPORATION | ||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
(unaudited and in millions) | ||||||||||||||
Year Ended | Year Ended | |||||||||||||
October 2, | October 3, | |||||||||||||
2011 | 2010 | |||||||||||||
OPERATING ACTIVITIES: | ||||||||||||||
Net earnings including noncontrolling interests | $ | 1,248.0 | $ | 948.3 | ||||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | 550.0 | 540.8 | ||||||||||||
Gain on sale of properties | (30.2 | ) | - | |||||||||||
Provision for impairments and asset disposals | 36.2 | 67.7 | ||||||||||||
Deferred income taxes, net | 106.2 | (42.0 | ) | |||||||||||
Equity in income of investees | (118.5 | ) | (108.6 | ) | ||||||||||
Distributions of income from equity investees | 85.6 | 91.4 | ||||||||||||
Gain resulting from acquisition of joint ventures |
(55.2 |
) |
(23.1 |
) |
||||||||||
Stock-based compensation | 145.2 | 113.6 | ||||||||||||
Excess tax benefit from exercise of stock options |
(103.9 |
) | (36.9 | ) | ||||||||||
Other | (2.9 | ) | 7.8 | |||||||||||
Cash provided/(used) by changes in operating assets and liabilities: | ||||||||||||||
Accounts receivable | (88.7 | ) | (33.4 | ) | ||||||||||
Inventories | (422.3 | ) | 123.2 | |||||||||||
Accounts payable | 227.5 | (3.6 | ) | |||||||||||
Accrued taxes | 104.0 | 0.6 | ||||||||||||
Deferred revenue | 35.8 | 24.2 | ||||||||||||
Other operating assets | (22.5 | ) | 17.3 | |||||||||||
Other operating liabilities | (81.9 | ) | 17.6 | |||||||||||
Net cash provided by operating activities | 1,612.4 |
1,704.9 |
||||||||||||
INVESTING ACTIVITIES: | ||||||||||||||
Purchase of available-for-sale securities | (966.0 | ) | (549.0 | ) | ||||||||||
Maturities and calls of available-for-sale securities | 430.0 | 209.9 | ||||||||||||
Sales of available-for-sale securities | - | 1.1 | ||||||||||||
Acquisitions, net of cash acquired |
(55.8 | ) | (12.0 | ) | ||||||||||
Net purchases of equity, other investments and other assets | (13.2 | ) | 1.2 | |||||||||||
Additions to property, plant and equipment | (531.9 | ) | (440.7 | ) | ||||||||||
Proceeds from sale of property, plant and equipment | 117.4 | - | ||||||||||||
Net cash used by investing activities | (1,019.5 | ) | (789.5 | ) | ||||||||||
FINANCING ACTIVITIES: | ||||||||||||||
Proceeds from short-term borrowings | 30.8 | - | ||||||||||||
Purchase of noncontrolling interest | (27.5 | ) | (45.8 | ) | ||||||||||
Proceeds from issuance of common stock | 235.4 | 127.9 | ||||||||||||
Excess tax benefit from exercise of stock options | 103.9 | 36.9 | ||||||||||||
Principal payments on long-term debt | (4.3 | ) | (6.6 | ) | ||||||||||
Cash dividends paid | (389.5 | ) | (171.0 | ) | ||||||||||
Repurchase of common stock | (555.9 | ) | (285.6 | ) | ||||||||||
Other | (0.9 | ) | (1.8 | ) | ||||||||||
Net cash used by financing activities | (608.0 | ) | (346.0 | ) | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | (0.8 | ) | (5.2 | ) | ||||||||||
Net increase/(decrease) in cash and cash equivalents | (15.9 | ) |
564.2 |
|||||||||||
CASH AND CASH EQUIVALENTS: | ||||||||||||||
Beginning of period | 1,164.0 | 599.8 | ||||||||||||
End of the period | $ | 1,148.1 | $ |
1,164.0 |
||||||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||||
Cash paid during the period for: | ||||||||||||||
Interest, net of capitalized interest | $ | 34.4 | $ | 32.0 | ||||||||||
Income taxes | $ | 350.1 | $ | 527.0 | ||||||||||
Fiscal Fourth Quarter 2011 Store Data The company’s store data for the periods presented are as follows: |
|||||||||||||||||
Net stores opened/(closed) during the period | |||||||||||||||||
Quarter Ended | Year Ended | Stores open as of | |||||||||||||||
October 2, | October 3, | October 2, | October 3, | October 2, | October 3, | ||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | ||||||||||||
United States: | |||||||||||||||||
Company-operated stores | 14 | (20 | ) | (2 | ) | (57 | ) | 6,705 | 6,707 | ||||||||
Licensed stores(1) |
(184 | ) | 20 | (342 | ) | 60 | 4,082 | 4,424 | |||||||||
(170 | ) | 0 | (344 | ) | 3 | 10,787 | 11,131 | ||||||||||
International: | |||||||||||||||||
Company-operated stores(2) |
51 | 21 | 144 | (16 | ) | 2,326 | 2,182 | ||||||||||
Licensed stores(2) |
104 | 100 | 345 | 236 | 3,890 | 3,545 | |||||||||||
155 | 121 | 489 | 220 | 6,216 | 5,727 | ||||||||||||
Total | (15 | ) | 121 | 145 | 223 | 17,003 | 16,858 |
(1) Includes the closure of 248 and 475 licensed Seattle's Best Coffee locations in Borders Bookstores in Q4 fiscal 2011 and YTD fiscal 2011, respectively.
(2) International store data has been adjusted for the acquisition of store locations in Austria and Switzerland in Q4 fiscal 2011, by reclassifying historical information from Licensed stores to Company-operated stores.
Non-GAAP Disclosure
In addition to the GAAP results provided in this release, the company provides non-GAAP net revenues, non-GAAP operating income, non-GAAP operating margin and non-GAAP earnings per share (non-GAAP EPS) for fiscal 2010 and fiscal 2011. These non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States. The GAAP measure most directly comparable to non-GAAP net revenues, non-GAAP operating income, non-GAAP operating margin, and non-GAAP earnings per share (non-GAAP EPS) are net revenues, operating income, operating margin, and diluted net earnings per share, respectively.
The fiscal 2010 non-GAAP financial measures provided in this release exclude fiscal 2010 restructuring charges, primarily related to previously-announced company-operated store closures, and the impact of the extra week in fiscal 2010. The fiscal 2011 non-GAAP financial measures provided in this release exclude non-routine gains from the sale of properties and the acquisition of the company’s joint venture operations in Switzerland and Austria in fiscal 2011. The company’s management believes that providing these non-GAAP financial measures better enables investors to understand and evaluate the company’s historical and prospective operating performance. More specifically, for historical non-GAAP financial measures, management excludes restructuring charges and the impact of the extra week in fiscal 2010, as well as the non-routine gains in fiscal 2011, because it believes that these costs, the impact of an additional week in a certain fiscal year and non-routine gains do not reflect expected future revenues and operating expenses and do not contribute to a meaningful evaluation of the company’s future operating performance or comparisons to the company’s past operating performance.
These non-GAAP financial measures may have limitations as analytical tools, and these measures should not be considered in isolation or as a substitute for analysis of the company’s results as reported under GAAP. Other companies may calculate these non-GAAP financial measures differently than the company does, limiting the usefulness of those measures for comparative purposes.
STARBUCKS CORPORATION | ||||||||||||||||||||||||||
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES | ||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||
(in millions, except per share data) | ||||||||||||||||||||||||||
Quarter Ended |
Year Ended |
|||||||||||||||||||||||||
October 2, | October 3, | % | October 2, | October 3, | % | |||||||||||||||||||||
2011 | 2010 | Change | 2011 | 2010 | Change | |||||||||||||||||||||
Consolidated | ||||||||||||||||||||||||||
Net revenues, as reported (GAAP) | $ | 3,031.9 | $ | 2,838.0 | 7 | % | $ | 11,700.4 | $ | 10,707.4 | 9 | % | ||||||||||||||
Impact of extra week in fiscal 2010 | - | (207.4 | ) | - | (207.4 | ) | ||||||||||||||||||||
Non-GAAP net revenues | $ | 3,031.9 | $ | 2,630.6 | 15 | % |
$ |
11,700.4 | $ | 10,500.0 | 11 | % | ||||||||||||||
Operating income, as reported (GAAP) | $ | 448.3 | $ | 399.3 | 12 | % |
$ |
1,728.5 | $ | 1,419.4 | ||||||||||||||||
Restructuring charges | - | 6.4 | - | 53.0 | ||||||||||||||||||||||
Impact of extra week in fiscal 2010 | - | (58.8 | ) | - | (58.8 | ) | ||||||||||||||||||||
Gain on sale of properties | (30.2 | ) | - | (30.2 | ) | - | ||||||||||||||||||||
Non-GAAP operating income | $ | 418.1 | $ | 346.9 | 20 | % |
$ |
1,698.3 | $ | 1,413.6 | ||||||||||||||||
Operating margin, as reported (GAAP) | 14.8 |
% |
|
14.1 |
% |
|
0.7 | % | 14.8 |
% |
|
13.3 |
% |
|
1.5 | % | ||||||||||
Restructuring charges | - | 0.2 | - | 0.5 | ||||||||||||||||||||||
Impact of extra week in fiscal 2010 | - | (1.1 | ) | - | (0.3 | ) | ||||||||||||||||||||
Gain on sale of properties | (1.0 | ) | - | (0.3 | ) | - | ||||||||||||||||||||
Non-GAAP operating margin | 13.8 |
% |
|
13.2 |
% |
|
0.6 | % | 14.5 |
% |
|
13.5 |
% |
|
1.0 | % | ||||||||||
Diluted EPS, as reported (GAAP) | $ | 0.47 | $ | 0.37 | 27 | % | $ | 1.62 | $ | 1.24 | 31 | % | ||||||||||||||
Restructuring charges, net of tax | - | - | - | 0.04 | ||||||||||||||||||||||
Gain on sale of properties | (0.02 | ) | - | (0.02 | ) | - | ||||||||||||||||||||
Gain from Switzerland and Austria transaction | (0.07 | ) | - | (0.07 | ) | - | ||||||||||||||||||||
Impact of extra week in fiscal 2010 | - | (0.05 | ) | - | (0.05 | ) | ||||||||||||||||||||
Non-GAAP Diluted EPS | $ | 0.37 | $ | 0.32 | 16 | % | $ | 1.52 | $ | 1.23 | 24 | % | ||||||||||||||
Net cash provided by operating activities | $ | 1,612.4 | ||||||||||||||||||||||||
Additions to property, plant and equipment | (531.9 | ) | ||||||||||||||||||||||||
Free cash flow | $ | 1,080.5 | ||||||||||||||||||||||||
United States | ||||||||||||||||||||||||||
Net revenues, as reported (GAAP) | $ | 2,029.8 | $ | 1,973.6 | 3 | % | ||||||||||||||||||||
Impact of extra week in fiscal 2010 | - | (143.3 | ) | |||||||||||||||||||||||
Non-GAAP net revenues | $ | 2,029.8 | $ | 1,830.3 | 11 | % | ||||||||||||||||||||
Operating income, as reported (GAAP) |
$ |
374.2 | $ | 342.2 | 9 | % | ||||||||||||||||||||
Restructuring charges | - | 1.1 | ||||||||||||||||||||||||
Impact of extra week in fiscal 2010 | - | (45.6 | ) | |||||||||||||||||||||||
Non-GAAP operating income |
$ |
374.2 | $ | 297.7 | 26 | % | ||||||||||||||||||||
Operating margin, as reported (GAAP) | 18.4 |
% |
|
17.3 |
% |
|
1.1 | % | 19.4 |
% |
|
17.1 |
% |
|
2.3 | % | ||||||||||
Restructuring charges | - | 0.1 | - | 0.4 | ||||||||||||||||||||||
Impact of extra week in fiscal 2010 | - | (1.1 | ) | - | (0.3 | ) | ||||||||||||||||||||
Non-GAAP operating margin | 18.4 |
% |
|
16.3 |
% |
|
2.1 | % | 19.4 |
% |
|
17.2 |
% |
|
2.2 | % | ||||||||||
STARBUCKS CORPORATION | |||||||||||||||||||||||||
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES | |||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||
(in millions, except per share data) | |||||||||||||||||||||||||
Quarter Ended |
Year Ended |
||||||||||||||||||||||||
October 2, | October 3, | % | October 2, | October 3, | % | ||||||||||||||||||||
2011 | 2010 | Change | 2011 | 2010 | Change | ||||||||||||||||||||
International | |||||||||||||||||||||||||
Net revenues, as reported (GAAP) | $ | 717.9 | $ | 619.3 | 16 | % | |||||||||||||||||||
Impact of extra week in fiscal 2010 |
- |
(45.2 | ) | ||||||||||||||||||||||
Non-GAAP net revenues |
$ |
717.9 | $ | 574.1 | 25 | % | |||||||||||||||||||
Operating income, as reported (GAAP) |
$ |
93.0 | $ | 85.7 | 9 | % | |||||||||||||||||||
Restructuring charges |
- |
5.3 | |||||||||||||||||||||||
Impact of extra week in fiscal 2010 | - | (13.9 | ) | ||||||||||||||||||||||
Non-GAAP operating income |
$ |
93.0 | $ | 77.1 | 21 | % | |||||||||||||||||||
Operating margin, as reported (GAAP) | 13.0 |
% |
|
13.8 |
% |
|
0.8 | % | 13.3 | % | 9.8 |
% |
|
3.5 | % | ||||||||||
Restructuring charges | - | 0.9 | - | 1.1 | |||||||||||||||||||||
Impact of extra week in fiscal 2010 | - | (1.3 | ) | - | (0.4 | ) | |||||||||||||||||||
Non-GAAP operating margin | 13.0 |
% |
|
13.4 |
% |
|
0.4 | % | 13.3 | % | 10.6 |
% |
|
2.7 | % | ||||||||||
Global CPG | |||||||||||||||||||||||||
Net revenues, as reported (GAAP) | $ | 242.2 | $ | 201.3 | 20 | % | |||||||||||||||||||
Impact of extra week in fiscal 2010 |
- |
(15.8 | ) | ||||||||||||||||||||||
Non-GAAP net revenues |
$ |
242.2 |
$ |
185.5 | 31 |
% |
|||||||||||||||||||
Operating income, as reported (GAAP) |
$ |
76.1 |
$ |
79.3 |
-4 |
% |
|
||||||||||||||||||
Impact of extra week in fiscal 2010 |
- |
(6.2 |
) |
||||||||||||||||||||||
Non-GAAP operating income |
$ |
76.1 |
$ |
73.1 |
4 |
% |
|||||||||||||||||||
Operating margin, as reported (GAAP) |
31.4 |
% |
39.4 |
% |
-8.0 |
% |
|||||||||||||||||||
Impact of extra week in fiscal 2010 |
- |
- |
|||||||||||||||||||||||
Non-GAAP operating margin |
31.4 |
% |
39.4 |
% |
-8.0 |
% |
|||||||||||||||||||
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Starbucks
Investor Relations:
JoAnn DeGrande,
206-318-7118
investorrelations@starbucks.com
or
Media:
Alan
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press@starbucks.com