Starbucks 2015 Annual Report Download - page 91

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The following table reconciles total segment operating income in the table above to consolidated earnings/(loss) before income
taxes (in millions):
Fiscal Year Ended Sep 27, 2015 Sep 28, 2014 Sep 29, 2013
Total segment operating income $ 4,521.1 $ 3,831.1 $ 3,131.6
Unallocated corporate operating expenses(1) (920.1)(750.0)(3,457.0)
Consolidated operating income/(loss) 3,601.0 3,081.1 (325.4)
Gain resulting from acquisition of joint venture 390.6 — —
Loss on extinguishment of debt (61.1) — —
Interest income and other, net 43.0 142.7 123.6
Interest expense (70.5)(64.1)(28.1)
Earnings/(loss) before income taxes $ 3,903.0 $ 3,159.7 $ (229.9)
(1) Fiscal 2013 includes a pretax charge of $2,784.1 million resulting from the litigation charge we recorded associated with the
conclusion of our arbitration with Kraft.
Note 17: Selected Quarterly Financial Information (unaudited; in millions, except EPS)
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Full
Year
Fiscal 2015:
Net revenues $ 4,803.2 $ 4,563.5 $ 4,881.2 $ 4,914.8 $ 19,162.7
Operating income 915.5 777.5 938.6 969.4 3,601.0
Net earnings attributable to Starbucks 983.1 494.9 626.7 652.5 2,757.4
EPS — diluted(1) 0.65 0.33 0.41 0.43 1.82
Fiscal 2014:
Net revenues $ 4,239.6 $ 3,873.8 $ 4,153.7 $ 4,180.8 $ 16,447.8
Operating income 813.5 644.1 768.5 854.9 3,081.1
Net earnings attributable to Starbucks 540.7 427.0 512.6 587.9 2,068.1
EPS — diluted(1) 0.35 0.28 0.34 0.39 1.35
(1) As discussed in Note 1, Summary of Significant Accounting Policies, on April 9, 2015, we effected a two-for-one stock
split of our $0.001 par value common stock for shareholders of record as of March 30, 2015. All per-share data presented
in this note has been retroactively adjusted to reflect this stock split.
Note 18: Subsequent Events
Subsequent to our fiscal year end, the European Commission has concluded that decisions by the tax authorities in the
Netherlands with regards to the corporate income tax paid by one of our subsidiaries did not comply with European Union rules
on state aid. Based on this decision, which covers a 7-year period from fiscal 2008 to fiscal 2014, we estimate the amount of
assessed past taxes to be no more than €30 million, including interest, which equates to approximately $32 million with euro
converted into U.S. dollars at a reference conversion rate of 1.075 EUR to USD. The exposure amount is not material and we
are currently evaluating this decision, including any impact to our fiscal 2016 tax provisions.
Starbucks Corporation 2015 Form 10-K 87