Starbucks 2015 Annual Report Download - page 6

PART I
Item 1. Business
General
Starbucks is the premier roaster, marketer and retailer of specialty coffee in the world, operating in 68 countries. Formed in
1985, Starbucks Corporation’s common stock trades on the NASDAQ Global Select Market ("NASDAQ") under the symbol
"SBUX." We purchase and roast high-quality coffees that we sell, along with handcrafted coffee, tea and other beverages and a
variety of fresh food items, including snack offerings, through company-operated stores. We also sell a variety of coffee and tea
products and license our trademarks through other channels such as licensed stores, grocery and foodservice accounts. In
addition to our flagship Starbucks Coffee brand, we sell goods and services under the following brands: Teavana, Tazo,
Seattle’s Best Coffee, Evolution Fresh, La Boulange and Ethos.
Our objective is to maintain Starbucks standing as one of the most recognized and respected brands in the world. To achieve
this, we are continuing the disciplined expansion of our global store base, adding stores in both existing, developed markets
such as the U.S., and in newer, higher growth markets such as China, as well as optimizing the mix of company-operated and
licensed stores in each market. In addition, by leveraging the experience gained through our traditional store model, we
continue to offer consumers new coffee and other products in a variety of forms, across new categories, and through diverse
channels. We also believe our Starbucks Global Responsibility strategy, commitments related to ethically sourcing high-quality
coffee and contributing positively to the communities we do business in, and being an employer of choice are contributors to
our objective.
In this Annual Report on Form 10-K ("10-K" or "Report") for the fiscal year ended September 27, 2015 ("fiscal 2015"),
Starbucks Corporation (together with its subsidiaries) is referred to as "Starbucks," the "Company," "we," "us" or "our."
Segment Financial Information
We have four reportable operating segments: 1) Americas, which is inclusive of the U.S., Canada, and Latin America; 2) China/
Asia Pacific ("CAP"); 3) Europe, Middle East, and Africa ("EMEA") and 4) Channel Development. We also have several non-
reportable operating segments, including Teavana, Seattle's Best Coffee, Evolution Fresh, and our Digital Ventures business, as
well as certain developing businesses such as the Starbucks Reserve® Roastery & Tasting Room, which are combined and
referred to as All Other Segments. Revenues from our reportable segments and All Other Segments as a percentage of total net
revenues for fiscal 2015 were as follows: Americas (69%), CAP (13%), EMEA (6%), Channel Development (9%) and All
Other Segments (3%).
Our Americas, CAP, and EMEA segments include both company-operated and licensed stores. Our Americas segment is our
most mature business and has achieved significant scale. Certain markets within our CAP and EMEA operations are still in the
early stages of development and require a more extensive support organization, relative to their current levels of revenue and
operating income, than our Americas operations. In certain markets within CAP and EMEA, occupancy costs and store
operating expenses can be higher than in the Americas segment due to higher rents for prime store locations or costs of
compliance with country-specific regulatory requirements. The Americas and EMEA segments also include certain foodservice
accounts, primarily in Canada and the U.K.
Our Channel Development segment includes roasted whole bean and ground coffees, premium Tazo® teas, Starbucks- and
Tazo-branded single-serve products, a variety of ready-to-drink beverages, such as Frappuccino®, Starbucks Doubleshot® and
Starbucks Refreshers® beverages, and other branded products sold worldwide through channels such as grocery stores,
warehouse clubs, specialty retailers, convenience stores, and U.S. foodservice accounts.
Starbucks segment information is included in Note 16, Segment Reporting, to the consolidated financial statements included in
Item 8 of Part II of this 10-K.
2 Starbucks Corporation 2015 Form 10-K