Starbucks 2011 Annual Report Download - page 38

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International
Fiscal Year Ended
Oct 3,
2010
Sep 27,
2009
Oct 3,
2010
Sep 27,
2009
As a % of
International Total
Net Revenues
Total net revenues ......................................... $2,288.8 $1,914.3 100.0% 100.0%
Costofsalesincludingoccupancycosts ......................... $1,078.2 $ 961.3 47.1% 50.2%
Storeoperatingexpenses ..................................... 719.5 610.0 31.4% 31.9%
Otheroperatingexpenses..................................... 85.7 71.2 3.7% 3.7%
Depreciationandamortizationexpenses ......................... 108.6 102.2 4.7% 5.3%
Generalandadministrativeexpenses............................ 126.6 105.0 5.5% 5.5%
Restructuringcharges ....................................... 25.8 27.0 1.1% 1.4%
Totaloperatingexpenses ..................................... 2,144.4 1,876.7 93.7% 98.0%
Incomefromequityinvestees ................................. 80.8 53.6 3.5% 2.8%
Operating income ......................................... $ 225.2 $ 91.2 9.8% 4.8%
Supplemental ratios as a % of related revenues:
Storeoperatingexpenses ..................................... 37.2% 37.9%
International net revenues increased due to foreign currency translation resulting from the weakening of the US
dollar primarily in relation to the Canadian dollar (approximately $101 million), comparable store sales of 6%
(contributing approximately $99 million), the effect of consolidating our previous joint venture in France
(approximately $87 million), and the extra week in fiscal 2010 (approximately $45 million). The increase in
comparable store sales was due to a 5% increase in transactions (contributing approximately $78 million), and a 1%
increase in average value per transaction (contributing approximately $21 million).
Cost of sales including occupancy costs as a percentage of total revenues decreased by 310 basis points compared to
the prior year. The decrease was primarily driven by lower costs for food and beverage components resulting from
supply chain efficiencies (approximately 120 basis points). Also contributing to the decrease were lower occupancy
costs as a percentage of total net revenues (approximately 120 basis points) primarily due to sales leverage.
Store operating expenses as a percent of related retail revenues decreased 70 basis points primarily due to reduced
impairments in fiscal 2010 compared to fiscal 2009.
Restructuring charges include lease exit and related costs associated with the actions to rationalize our global store
portfolio. Restructuring charges in fiscal 2010 decreased slightly from 2009 due to the completion of our
restructuring efforts internationally by the end of fiscal 2010.
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