Starbucks 2011 Annual Report Download - page 32

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Other Income and Expenses
Fiscal Year Ended
Oct 2,
2011
Oct 3,
2010
Oct 2,
2011
Oct 3,
2010
% of Total
Net Revenues
Operatingincome ............................................ $1,728.5 $1,419.4 14.8% 13.3%
Interestincomeandother,net................................... 115.9 50.3 1.0% 0.5%
Interestexpense ............................................. (33.3) (32.7) (0.3)% (0.3)%
Earningsbeforeincometaxes ................................... 1,811.1 1,437.0 15.5% 13.4%
Incometaxes................................................ 563.1 488.7 4.8% 4.6%
Net earnings including noncontrolling interests ..................... 1,248.0 948.3 10.7% 8.9%
Net earnings (loss) attributable to noncontrolling interests ............. 2.3 2.7 0.0% 0.0%
Net earnings attributable to Starbucks .......................... $1,245.7 $ 945.6 10.6% 8.8%
Effective tax rate including noncontrolling interests .................. 31.1% 34.0%
Net interest income and other increased $66 million over the prior year. The increase primarily resulted from the
gain recorded in the fourth quarter of fiscal 2011 related to our acquisition of the remaining ownership interest in our
joint venture operations in Switzerland and Austria (approximately $55 million).
Income taxes for the fiscal year ended 2011 resulted in an effective tax rate of 31.1% compared to 34.0% for fiscal
2010. The lower rate in fiscal 2011 was primarily due to a benefit from the Switzerland and Austria transaction and
to an increase in income in foreign jurisdictions having lower tax rates. The effective tax rate for fiscal 2012 is
expected to be approximately 33%.
Operating Segments
The following tables summarize our results of operations by segment for fiscal 2011 and 2010 (in millions).
United States
Fiscal Year Ended
Oct 2,
2011
Oct 3,
2010
Oct 2,
2011
Oct 3,
2010
As a % of US Total
Net Revenues
Total net revenues ........................................ $8,038.0 $7,560.4 100.0% 100.0%
Costofsalesincludingoccupancycosts ........................ $3,093.9 $2,906.1 38.5% 38.4%
Storeoperatingexpenses.................................... 2,891.3 2,831.9 36.0% 37.5%
Otheroperatingexpenses ................................... 62.7 55.6 0.8% 0.7%
Depreciationandamortizationexpenses ........................ 343.8 350.7 4.3% 4.6%
Generalandadministrativeexpenses .......................... 83.7 97.8 1.0% 1.3%
Restructuringcharges ...................................... 0.0 27.2 0.0% 0.4%
Totaloperatingexpenses.................................... 6,475.4 6,269.3 80.6% 82.9%
Operating income ........................................ $1,562.6 $1,291.1 19.4% 17.1%
Supplemental ratios as a % of related revenues:
Storeoperatingexpenses.................................... 38.8% 40.3%
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