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62
Reclassifications
Change in shared service allocations
Effective at the beginning of fiscal 2012, we implemented the previously announced strategic realignment of our
organizational structure designed to accelerate our global growth strategy. A president for each region, reporting
directly to our chief executive officer, now oversees the company-operated retail business working closely with
both the licensed and joint-venture business partners in each market. The regional presidents also work closely
with our Channel Development team to continue building out our brands and channels in each region.
In connection with the changes to our organizational structure and reporting, we have changed the accountability
for, and reporting of, certain indirect overhead costs. Certain indirect merchandising, manufacturing costs and
back-office shared service costs, which were previously allocated to segment level costs of sales and operating
expenses, are now managed at a corporate level and will be reported within unallocated corporate expenses. These
expenses have therefore been removed from the segment level financial results. In order to conform prior period
classifications with the new alignment, the historical consolidated financial statements have been recast with the
following adjustments to previously reported amounts (in millions):
Year Ended October 2, 2011
As Filed Reclass As Adjusted
Total net revenues $ 11,700.4 $
—
$ 11,700.4
Cost of sales including occupancy costs 4,949.3 (33.8) 4,915.5
Store operating expenses 3,665.1 (70.2) 3,594.9
Other operating expenses 402.0 (9.2) 392.8
Depreciation and amortization expenses 523.3
—
523.3
General and administrative expenses 636.1 113.2 749.3
Total operating expenses 10,175.8
—
10,175.8
Gain on sale of properties 30.2
—
30.2
Income from equity investees 173.7
—
173.7
Operating income $ 1,728.5 $
—
$ 1,728.5
Year Ended October 3, 2010
As Filed Reclass As Adjusted
Total net revenues $ 10,707.4 $
—
$ 10,707.4
Cost of sales including occupancy costs 4,458.6 (42.1) 4,416.5
Store operating expenses 3,551.4 (79.5) 3,471.9
Other operating expenses 293.2 (13.5) 279.7
Depreciation and amortization expenses 510.4
—
510.4
General and administrative expenses 569.5 135.1 704.6
Restructuring charges 53.0
—
53.0
Total operating expenses 9,436.1
—
9,436.1
Income from equity investees 148.1
—
148.1
Operating income $ 1,419.4 $
—
$ 1,419.4
There was no impact on consolidated net revenues, total operating expenses, operating income, or net earnings as
a result of this change. Additional discussion regarding the change in our organizational structure and segment
results is included at Note 17.