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36
Other Income and Expenses
Fiscal Year Ended
Oct 2,
2011
Oct 3,
2010
Oct 2,
2011
Oct 3,
2010
% of Total
Net Revenues
Operating income $ 1,728.5 $ 1,419.4 14.8% 13.3%
Interest income and other, net 115.9 50.3 1.0% 0.5%
Interest expense (33.3) (32.7) (0.3)% (0.3)%
Earnings before income taxes 1,811.1 1,437.0 15.5% 13.4%
Income taxes 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
—
—
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.
Segment Information
The following tables summarize our results of operations by segment for fiscal 2011 and 2010 (in millions).
Americas
Fiscal Year Ended
Oct 2,
2011
Oct 3,
2010
Oct 2,
2011
Oct 3,
2010
As a % of Americas Total
Net Revenues
Total net revenues $ 9,065.0 $ 8,488.5 100.0% 100.0%
Cost of sales including occupancy costs 3,512.7 3,258.5 38.8% 38.4%
Store operating expenses 3,184.2 3,083.3 35.1% 36.3%
Other operating expenses 75.8 63.1 0.8% 0.7%
Depreciation and amortization expenses 390.8 392.9 4.3% 4.6%
General and administrative expenses 60.8 56.4 0.7% 0.7%
Restructuring charges — 28.4
—
0.3%
Total operating expenses 7,224.3 6,882.6 79.7% 81.1%
Income from equity investees 1.6 0.9
—
—
Operating income $ 1,842.3 $ 1,606.8 20.3% 18.9%
Supplemental ratios as a % of related revenues:
Store operating expenses 38.1% 39.2%
%
%%
% %