Starbucks 2011 Annual Report Download - page 39

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Global Consumer Products Group
Fiscal Year Ended
Oct 3,
2010
Sep 27,
2009
Oct 3,
2010
Sep 27,
2009
As a % of CPG
Total Net Revenues
Total net revenues ......................................... $707.4 $674.4 100.0% 100.0%
Costofsalesincludingoccupancycosts ......................... $384.9 $350.5 54.4% 52.0%
Otheroperatingexpenses..................................... 117.0 95.3 16.5% 14.1%
Depreciationandamortizationexpenses ......................... 3.7 4.8 0.5% 0.7%
Generalandadministrativeexpenses............................ 11.0 8.8 1.6% 1.3%
Restructuringcharges ....................................... 0.0 1.0 0.0% 0.1%
Totaloperatingexpenses ..................................... 516.6 460.4 73.0% 68.3%
Incomefromequityinvestees ................................. 70.6 67.8 10.0% 10.1%
Operating income ......................................... $261.4 $281.8 37.0% 41.8%
CPG net revenues increased primarily due to the launch of Starbucks VIA®Ready Brew (approximately $22
million) and the extra week in fiscal 2010 (approximately $16 million).
Operating margin decreased 480 basis points over the prior year due primarily to increased Starbucks VIA®Ready
Brew launch expenses.
Other
Fiscal Year Ended
Oct 3,
2010
Sep 27,
2009
%
Change
Total net revenues .................................................. $ 150.8 $ 124.2 21.4%
Costofsales ....................................................... $ 89.4 $ 71.7 24.7%
Otheroperatingexpenses.............................................. 34.9 31.3 11.5%
Depreciationandamortizationexpenses .................................. 47.4 49.8 (4.8)%
Generalandadministrativeexpenses..................................... 334.1 254.4 31.3%
Restructuringcharges ................................................ 0.0 58.1 (100.0)%
Totaloperatingexpenses .............................................. 505.8 465.3 8.7%
Lossfromequityinvestee ............................................. (3.3) 0.0 nm
Operating loss ..................................................... $(358.3) $(341.1) 5.0%
Substantially all of net revenues in Other are generated from the Seattle’s Best Coffee operating segment. The
increase in revenues for Seattle’s Best Coffee was primarily due to sales to new national accounts (contributing
approximately $13 million).
Operating expenses included in Other relate to Seattle’s Best Coffee and Digital Ventures as well as expenses
pertaining to corporate administrative functions that support our operating segments but are not specifically
attributable to or managed by any segment and are not included in the reported financial results of the operating
segments. Total operating expenses increased $40.5 million primarily as a result of increased general and
administrative expenses ($80 million) primarily due to higher performance-based compensation in 2010. This
increase was partially offset by a decrease of $58 million in restructuring charges due to the completion of our
restructuring activities within the non-store support organization.
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