Starbucks 2005 Annual Report Download - page 75

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regulatory requirements that necessitate a more extensive support organization, relative to the current levels of
revenue and operating income, than in the United States.
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 ""Interest and other
income, net'' and ""Income taxes.'' Allocations of portions of corporate overhead, interest or income taxes to
the segments are not significant. Identifiable assets by segment are those assets used in the Company's
operations in each segment. Unallocated corporate assets include cash and investments, unallocated assets of
the corporate headquarters and roasting facilities, deferred taxes and certain other intangibles. Management
evaluates performance of segments based on net revenues and operating expenses.
73