Note 18: Segment Reporting

Segment information is prepared on the same basis that our management reviews financial information for operational decision making purposes. We have three reportable operating segments: US, International, and CPG. Our Seattle's Best Coffee operating segment is reported with our unallocated corporate expenses and Digital Ventures in "Other".

United States

US operations sell coffee and other beverages, complementary food, whole bean coffees, and a focused selection of merchandise primarily through company-operated stores. Other operations within the US include licensed stores.

International

International operations sell coffee and other beverages, complementary food, whole bean coffees, and a focused selection of merchandise through company-operated stores in Canada, the UK, and several other markets. Other operations in international markets primarily include retail store licensing operations in nearly 50 countries and foodservice accounts, primarily in the UK and Canada. Many of our international operations are in the early stages of development that require a more extensive support organization, relative to the current levels of revenue and operating income, than in the US.

Global Consumer Products Group

CPG operations sell a selection of whole bean and ground coffees as well as a selection of premium Tazo^® teas in US and international markets. CPG operations also produce and sell ready-to-drink beverages which include, among others, bottled Frappuccino^® beverages, Starbucks DoubleShot^® espresso drinks, and Discoveries^® chilled cup coffee. In addition, CPG operations produce and sell Starbucks VIA^® Ready Brew, as well as Starbucks^® super-premium ice creams through its marketing and distribution agreements and a joint venture. The US foodservice business sells coffee and other related products to institutional foodservice companies with the majority of its sales through national broadline distribution networks.

Other

Other includes Seattle's Best Coffee and Digital Ventures as well as expenses pertaining to corporate administrative functions that support the operating segments but are not specifically attributable to or managed by any segment, and are not included in the reported financial results of the operating segments.

Revenue mix by product type (in millions):


Fiscal Year Ended	Oct 2, 2011				Oct 3, 2010				Sep 27, 2009
Beverage	$	7,217.0	62	%	$	6,750.3	63	%	$	6,238.4	64	%
Food		2,008.0	17	%		1,878.7	18	%		1,680.2	17	%
Whole bean and soluble coffees		1,451.0	12	%		1,131.3	10	%		965.2	10	%
Other⁽¹⁾		1,024.4	9	%		947.1	9	%		890.8	9	%

Total	$	11,700.4	100	%	$	10,707.4	100	%	$	9,774.6	100	%

⁽¹⁾	Other includes royalty and licensing revenues, beverage-related accessories and equipment revenues.

Information by geographic area (in millions):


Fiscal Year Ended	Oct 2, 2011		Oct 3, 2010		Sep 27, 2009
Net revenues from external customers:
United States	$	8,966.9	$	8,335.4	$	7,787.7
Other countries		2,733.5		2,372.0		1,986.9

Total	$	11,700.4	$	10,707.4	$	9,774.6

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 US consist primarily of revenues from Canada, UK, and China, which together account for approximately 66% of net revenues from other countries for fiscal 2011.


	Oct 2, 2011		Oct 3, 2010		Sep 27, 2009
Long-lived assets:
United States	$	2,587.1	$	2,807.9	$	2,776.7
Other countries		978.4		821.6		764.3

Total	$	3,565.5	$	3,629.5	$	3,541.0

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 the summary of significant accounting policies in Note 1. Operating income represents earnings before net interest income and other, interest expense and income taxes. Management does not evaluate the performance of its operating segments using asset measures. The identifiable assets by segment disclosed in this note are those assets specifically identifiable within each segment and include net property, plant and equipment, equity and cost investments, goodwill, and other intangible assets. Corporate assets are primarily comprised of cash and investments, assets of the corporate headquarters and roasting facilities, and inventory.

The table below presents financial information for our reportable operating segments and Other for the fiscal years noted (in millions):


	United States		International		CPG		Other			Total
Fiscal 2011:
Total net revenues	$	8,038.0	$	2,626.1	$	860.5	$	175.8		$	11,700.4
Depreciation and amortization		343.8		118.5		2.4		58.6			523.3
Income from equity investees		0.0		100.5		75.6		(2.4	)		173.7
Operating income/(loss)		1,562.6		349.7		273.0		(456.8	)		1,728.5
Total assets		1,479.4		1,300.7		54.7		4,525.6			7,360.4
Fiscal 2010:
Total net revenues	$	7,560.4	$	2,288.8	$	707.4	$	150.8		$	10,707.4
Depreciation and amortization		350.7		108.6		3.7		47.4			510.4
Income from equity investees		0.0		80.8		70.6		(3.3	)		148.1
Operating income/(loss)		1,291.1		225.2		261.4		(358.3	)		1,419.4
Total assets		1,482.9		1,272.8		54.1		3,576.1			6,385.9
Fiscal 2009:
Total net revenues	$	7,061.7	$	1,914.3	$	674.4	$	124.2		$	9,774.6
Depreciation and amortization		377.9		102.2		4.8		49.8			534.7
Income from equity investees		0.5		53.6		67.8		0.0			121.9
Operating income/(loss)		530.1		91.2		281.8		(341.1	)		562.0
Total assets		1,640.8		1,071.3		71.1		2,793.6			5,576.8

The table below reconciles the total of the reportable segments' operating income and the operating income included in Other to consolidated earnings before income taxes (in millions):


Fiscal Year Ended	Oct 2, 2011			Oct 3, 2010			Sep 27, 2009
Operating income	$	1,728.5		$	1,419.4		$	562.0
Interest income and other, net		115.9			50.3			37.0
Interest expense		(33.3	)		(32.7	)		(39.1	)

Earnings before income taxes	$	1,811.1		$	1,437.0		$	559.9