Starbucks 2013 Annual Report Download - page 33

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25
Segment Information
The following tables summarize the results of operations by segment (in millions):
Americas
Fiscal Year Ended
Sep 29,
2013
Sep 30,
2012
Sep 29,
2013
Sep 30,
2012
As a % of Americas
Total Net Revenues
Total net revenues $ 11,000.8 $ 9,936.0 100.0% 100.0%
Cost of sales including occupancy costs 4,214.9 3,885.5 38.3 % 39.1 %
Store operating expenses 3,710.2 3,427.8 33.7 % 34.5 %
Other operating expenses 96.9 83.8 0.9 % 0.8 %
Depreciation and amortization expenses 429.3 392.4 3.9 % 3.9 %
General and administrative expenses 186.7 128.2 1.7 % 1.3 %
Total operating expenses 8,638.0 7,917.7 78.5 % 79.7 %
Income from equity investees 2.4 2.1 — % — %
Operating income $ 2,365.2 $ 2,020.4 21.5% 20.3%
Supplemental ratios as a % of related revenues:
Store operating expenses 37.0 % 37.8 %
Revenues
Americas total net revenues for fiscal 2013 increased $1.1 billion, or 11%, primarily due to increased revenues from company-
operated stores (contributing $961 million) and licensed stores (contributing $90 million).
The increase in company-operated store revenues was driven by an increase in comparable store sales (7%, or approximately
$676 million) and incremental revenues from 276 net new company-operated store openings over the past 12 months
(approximately $273 million). The increase in licensed stores revenue was due to higher product sales to and royalty revenues
from our licensees as a result of improved comparable store sales and the opening of 404 net new licensed stores over the past
12 months.
Operating Expenses
Cost of sales including occupancy costs as a percentage of total net revenues decreased 80 basis points, primarily due to store
initiatives to reduce waste (approximately 40 basis points) and lower commodity costs (approximately 30 basis points), driven
by a decrease in coffee costs.
Store operating expenses as a percentage of total net revenues (as well as a percentage of company-operated store revenues)
decreased 80 basis points, primarily driven by sales leverage (approximately 60 basis points).
General and administrative expenses as a percentage of total net revenues increased 40 basis points primarily due to the costs
related to our October Global Leadership Conference (approximately 20 basis points).
The combination of these changes resulted in an increase in operating margin of 120 basis points over fiscal 2012.
2013 10-K
Starbucks Corporation Form