Starbucks 2005 Annual Report Download - page 30

necessitate a more extensive support organization, relative to the current levels of revenue and operating
income, than in the United States.
International total net revenues increased 29% to $1.0 billion for the fiscal year ended 2005, compared to
$803 million for the 53-week period of fiscal 2004. Excluding the impact of the extra week in fiscal 2004,
International total net revenues increased 31%. International Company-operated retail revenues increased 30%
to $852 million for the fiscal year ended 2005, compared to $657 million for the 53-week period of fiscal 2004.
Excluding the impact of the extra week in fiscal 2004, International Company-operated revenues increased
32%, primarily due to the opening of 161 new Company-operated retail stores in the last 12 months,
comparable store sales growth of 6% for the 52-week period of fiscal 2005, and the weakening of the
U.S. dollar against both the Canadian dollar and British pound sterling. The increase in comparable store sales
resulted from a 4% increase in the number of customer transactions and a 2% increase in the average value per
transaction.
Total International specialty revenues increased 25% to $182 million for the fiscal year ended 2005, compared
to $146 million for the 53-week period of fiscal 2004. Excluding the impact of the extra week in fiscal 2004,
International specialty revenues increased 27%. International licensing revenues increased 23% to $158 million
for the fiscal year ended 2005, compared to $129 million in the 53-week period of fiscal 2004. Excluding the
impact of the extra week in 2004, International licensing revenues increased 25%, primarily due to higher
product sales and royalty revenues from opening 341 new licensed retail stores in the last 12 months, volume
driven growth in the Canadian grocery and warehouse club businesses, and, to a lesser extent, the launch of
new ready-to-drink coffee beverages in Japan and Taiwan. International foodservice and other revenues
increased 38% to $24 million for the fiscal year ended 2005, compared to $18 million in the 53-week period of
fiscal 2004. Excluding the impact of the extra week in 2004, international foodservice and other revenues
increased 41%, primarily due to growth in new and existing foodservice accounts.
International operating income increased to $86 million for the fiscal year ended 2005, compared to
$52 million in the 53-week period of fiscal 2004. Operating margin increased to 8.4% of related revenues from
6.4% in the 53-week period of fiscal 2004, primarily due to leverage gained on most fixed costs distributed over
an expanded revenue base.
Unallocated Corporate
Unallocated corporate expenses pertain to certain functions, such as executive management, accounting,
administration, tax, treasury and information technology infrastructure, that support but are not specifically
attributable to the Company's operating segments, and include related depreciation and amortization
expenses. Unallocated corporate expenses increased to $252 million for the fiscal year ended 2005, from
$208 million in the 53-week period of fiscal 2004, primarily due to increased charitable commitments as well
as higher payroll-related expenditures. Total unallocated corporate expenses as a percentage of total net
revenues remained unchanged at 3.9% for the fiscal year ended 2005 and the 53-week period of fiscal 2004.
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