Starbucks 2013 Annual Report Download - page 39

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31
Segment Information
The following tables summarize the results of operations by segment (in millions):
Americas
Fiscal Year Ended
Sep 30,
2012
Oct 2,
2011
Sep 30,
2012
Oct 2,
2011
As a % of Americas Total
Net Revenues
Total net revenues $ 9,936.0 $ 9,065.0 100.0% 100.0%
Cost of sales including occupancy costs 3,885.5 3,512.7 39.1 % 38.8 %
Store operating expenses 3,427.8 3,184.2 34.5 % 35.1 %
Other operating expenses 83.8 75.8 0.8 % 0.8 %
Depreciation and amortization expenses 392.4 391.4 3.9 % 4.3 %
General and administrative expenses 128.2 127.3 1.3 % 1.4 %
Total operating expenses 7,917.7 7,291.4 79.7 % 80.4 %
Income from equity investees 2.1 1.6 — % — %
Operating income $ 2,020.4 $ 1,775.2 20.3% 19.6%
Supplemental ratios as a % of related revenues:
Store operating expenses 37.8 % 38.1 %
Revenues
Americas total net revenues for fiscal 2012 increased 10%, or $871 million, primarily due to increased revenues from
company-operated stores (contributing $712 million), driven by an increase in comparable store sales (approximately 8%, or
$626 million). Also contributing to the increase were incremental revenues from net new company-operated store openings
over the past 12 months (approximately $100 million).
Licensed store revenues also contributed to the increase in total net revenues with an increase of $149 million in fiscal 2012
over the prior year period, primarily due to higher product sales to and royalty revenues from our licensees, resulting from
improved comparable store sales and the opening of 270 net new licensed stores over the past 12 months.
Operating Expenses
Cost of sales including occupancy costs as a percentage of total net revenues increased 30 basis points, primarily driven by
higher commodity costs (approximately 110 basis points), mainly coffee, partially offset by increased sales leverage on
occupancy costs (approximately 70 basis points).
Store operating expenses as a percentage of total net revenues decreased 60 basis points. Increased licensed store revenues
contributed approximately 30 basis points of the decrease. Store operating expenses as a percentage of company-operated store
revenues decreased 30 basis points, primarily due to increased sales leverage (approximately 70 basis points), partially offset
by higher debit card transaction fees (approximately 20 basis points).
Other operating expenses as a percentage of total net revenues was flat over prior year. As a percentage of net revenues
excluding company-operated store revenues, other operating expenses decreased 100 basis points, primarily driven by
increased sales leverage.
The combination of these changes, along with increased sales leverage on depreciation and amortization expense
(approximately 40 basis points), resulted in an increase in operating margin of 70 basis points over fiscal 2011.
2013 10-K
Starbucks Corporation Form