Starbucks 2011 Annual Report Download - page 37

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fair value upon the acquisition of the controlling interest. Also contributing to the increase were favorable
fluctuations in unrealized holding gains on our trading securities portfolio of approximately $10 million. This
favorability was partially offset by unfavorable foreign currency fluctuations (approximately $11 million), which
related primarily to the revaluation of certain trade payables and receivables.
Income taxes for the fiscal year ended 2010 resulted in an effective tax rate of 34.0% compared to 30.1% for fiscal
2009. The lower rate in fiscal 2009 was primarily due to the benefits recognized for retroactive tax credits and an
audit settlement.
United States
Fiscal Year Ended
Oct 3,
2010
Sep 27,
2009
Oct 3,
2010
Sep 27,
2009
As a % of US Total
Net Revenues
Total net revenues ......................................... $7,560.4 $7,061.7 100.0% 100.0%
Costofsalesincludingoccupancycosts ......................... $2,906.1 $2,941.4 38.4% 41.7%
Storeoperatingexpenses ..................................... 2,831.9 2,815.1 37.5% 39.9%
Otheroperatingexpenses .................................... 55.6 66.6 0.7% 0.9%
Depreciationandamortizationexpenses ......................... 350.7 377.9 4.6% 5.4%
Generalandadministrativeexpenses............................ 97.8 84.8 1.3% 1.2%
Restructuringcharges ....................................... 27.2 246.3 0.4% 3.5%
Totaloperatingexpenses ..................................... 6,269.3 6,532.1 82.9% 92.5%
Incomefromequityinvestees ................................. 0.0 0.5 0.0% 0.0%
Operating income ......................................... $1,291.1 $ 530.1 17.1% 7.5%
Supplemental ratios as a % of related revenues:
Storeoperatingexpenses ..................................... 40.3% 42.8%
US net revenues increased primarily due to an increase in company-operated retail revenues of 7%. This increase is
primarily due to a 7% increase in comparable store sales (contributing approximately $452 million), comprised of a
3% increase in transactions (contributing approximately $222 million), and a 4% increase in average value per
transaction (contributing approximately $230 million). Also contributing to the increase in total net revenues was the
extra week in fiscal 2010 (approximately $143 million), partially offset by a net decrease of 57 company-operated
stores from fiscal 2009 (approximately $125 million).
Cost of sales including occupancy costs as a percentage of total revenues decreased by 330 basis points over the
prior year. The decrease was primarily driven by supply chain efficiencies which contributed to lower food costs
(approximately 90 basis points) and lower beverage and paper packaging product costs (approximately 60 basis
points). Also contributing to the decrease were lower occupancy costs as a percentage of total net revenues
(approximately 100 basis points) primarily due to sales leverage.
Store operating expenses as a percent of related retail revenues decreased 250 basis points primarily due to increased
sales leverage.
Restructuring charges include lease exit and related costs associated with the actions to rationalize our global store
portfolio. Restructuring charges in fiscal 2010 decreased $219 million from 2009 due to the completion of our
restructuring efforts in the US during fiscal 2010.
31