Starbucks 2015 Annual Report Download - page 89

Download and view the complete annual report

Please find page 89 of the 2015 Starbucks annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

fourth quarter of fiscal 2013, $2,763.9 million was paid and the remainder was released as a litigation credit to reflect a
reduction to our estimated prejudgment interest payable as a result of paying our obligation earlier than anticipated.
Starbucks is party to various other legal proceedings arising in the ordinary course of business, including, at times, certain
employment litigation cases that have been certified as class or collective actions, but is not currently a party to any legal
proceeding that management believes could have a material adverse effect on our consolidated financial position, results of
operations or cash flows.
Note 16: Segment Reporting
Our chief executive officer and chief operating officer comprise the Company's Chief Operating Decision Maker function
("CODM"). Segment information is prepared on the same basis that our CODM manages the segments, evaluates financial
results, and makes key operating decisions.
We have four reportable operating segments: 1) Americas, 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.
Americas, CAP, and EMEA operations sell coffee and other beverages, complementary food, packaged coffees, single-serve
coffee products and a focused selection of merchandise through company-operated stores 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. The Americas and EMEA segments also include certain
foodservice accounts, primarily in Canada and the U.K.
Channel Development operations sell a selection of packaged coffees and single-serve products, as well as a selection of
premium Tazo® teas globally. Channel Development operations also produce and sell a variety of ready-to-drink beverages,
such as Frappuccino® coffee drinks, Starbucks Doubleshot® espresso drinks, Starbucks Refreshers® beverages and chilled
multi-serve beverages. The U.S. foodservice business, which is included in the Channel Development segment, sells coffee and
other related products to institutional foodservice companies.
Consolidated revenue mix by product type (in millions):
Fiscal Year Ended Sep 27, 2015 Sep 28, 2014 Sep 29, 2013
Beverage $ 11,115.4 58% $ 9,458.4 58% $ 8,674.7 58%
Food 3,085.3 16% 2,505.2 15% 2,189.8 15%
Packaged and single-serve coffees and teas 2,619.9 14% 2,370.0 14% 2,206.5 15%
Other(1) 2,342.1 12% 2,114.2 13% 1,795.8 12%
Total $ 19,162.7 100% $ 16,447.8 100% $ 14,866.8 100%
(1) "Other" primarily consists of royalty and licensing revenues, beverage-related ingredients, ready-to-drink beverages and
serveware, among other items.
In fiscal 2014, we moved ready-to-drink beverage revenues from the "Food" category to the "Other" category and combined
packaged and single-serve teas, which were previously included in the "Other" category, with packaged and single-serve
coffees, which are now categorized as "Packaged and single-serve coffees and teas." Additionally, we revised our discount
allocation methodology to more precisely allocate sales discounts to the various revenue product categories. None of these
changes had a material impact on the composition of our revenue mix by product type.
Starbucks Corporation 2015 Form 10-K 85