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Segment Reporting | 12 Months Ended
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Oct. 02, 2016
Segment Reporting [Abstract] |
Segment Reporting | 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, CAP and EMEA segments also include certain foodservice accounts, primarily in Canada, Japan 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 | Oct 2, 2016 |  | Sep 27, 2015 |  | Sep 28, 2014
Beverage | $ | 12,383.4 |  |  | 58 | % |  | $ | 11,115.4 |  |  | 58 | % |  | $ | 9,458.4 |  |  | 58 | %
Food | 3,495.0 |  |  | 16 | % |  | 3,085.3 |  |  | 16 | % |  | 2,505.2 |  |  | 15 | %
Packaged and single-serve coffees and teas | 2,866.0 |  |  | 14 | % |  | 2,619.9 |  |  | 14 | % |  | 2,370.0 |  |  | 14 | %
Other(1) | 2,571.5 |  |  | 12 | % |  | 2,342.1 |  |  | 12 | % |  | 2,114.2 |  |  | 13 | %
Total | $ | 21,315.9 |  |  | 100 | % |  | $ | 19,162.7 |  |  | 100 | % |  | $ | 16,447.8 |  |  | 100 | %
(1) "Other" primarily consists of royalty and licensing revenues, beverage-related ingredients, serveware, and ready-to-drink beverages, among other items. Information by geographic area (in millions):
Fiscal Year Ended | Oct 2, 2016 |  | Sep 27, 2015 |  | Sep 28, 2014
Net revenues: |  |  |  |  |
United States | $ | 15,774.8 |  |  | $ | 14,123.7 |  |  | $ | 12,590.6 |
Other countries | 5,541.1 |  |  | 5,039.0 |  |  | 3,857.2 |
Total | $ | 21,315.9 |  |  | $ | 19,162.7 |  |  | $ | 16,447.8 |
Long-lived assets(1): |  |  |  |  |
United States | $ | 6,027.2 |  |  | $ | 5,805.4 |  |  | $ | 5,450.9 |
Other countries | 3,541.8 |  |  | 2,639.9 |  |  | 1,449.7 |
Total | $ | 9,569.0 |  |  | $ | 8,445.3 |  |  | $ | 6,900.6 |
(1) Long-lived assets as of September 27, 2015 and September 28, 2014 have been adjusted for the adoption of new accounting guidance related to the reclassification of deferred income taxes as discussed in Note 1, Summary of Significant Accounting Policies. No customer accounts for 10% or more of our revenues. Revenues are shown based on the geographic location of our customers. Revenues from countries other than the U.S. consist primarily of revenues from Japan, Canada, China and the U.K., which together account for approximately 77% of net revenues from other countries for fiscal 2016. Management evaluates the performance of its operating segments based on net revenues and operating income. The accounting policies of the operating segments are the same as those described in Note 1, Summary of Significant Accounting Policies. Operating income represents earnings before other income and expenses and income taxes. Management does not evaluate the performance of its operating segments using asset measures. The identifiable assets by segment disclosed in this note are those assets specifically identifiable within each segment and include cash and cash equivalents, net property, plant and equipment, equity and cost investments, goodwill, and other intangible assets. Assets not attributed to reportable operating segments below are corporate assets and are primarily comprised of cash and cash equivalents available for general corporate purposes, investments, assets of the corporate headquarters and roasting facilities, and inventory. The table below presents financial information for our reportable operating segments and All Other Segments for the years ended October 2, 2016, September 27, 2015 and September 28, 2014.
(in millions) | Americas |  | China / Asia Pacific |  | EMEA |  | Channel Development |  | All Other Segments |  | Segment Total
Fiscal 2016 |  |  |  |  |  |  |  |  |  |  |
Total net revenues | $ | 14,795.4 |  |  | $ | 2,938.8 |  |  | $ | 1,124.9 |  |  | $ | 1,932.5 |  |  | $ | 524.3 |  |  | $ | 21,315.9 |
Depreciation and amortization expenses | 590.1 |  |  | 180.6 |  |  | 40.8 |  |  | 2.8 |  |  | 13.3 |  |  | 827.6 |
Income from equity investees | — |  |  | 150.1 |  |  | 1.5 |  |  | 166.6 |  |  | — |  |  | 318.2 |
Operating income/(loss) | 3,742.0 |  |  | 631.6 |  |  | 151.6 |  |  | 807.3 |  |  | (38.4 | ) |  | 5,294.1 |
Total assets | 3,424.6 |  |  | 2,740.2 |  |  | 552.1 |  |  | 67.1 |  |  | 861.1 |  |  | 7,645.1 |
Fiscal 2015 |  |  |  |  |  |  |  |  |  |  |
Total net revenues | $ | 13,293.4 |  |  | $ | 2,395.9 |  |  | $ | 1,216.7 |  |  | $ | 1,730.9 |  |  | $ | 525.8 |  |  | $ | 19,162.7 |
Depreciation and amortization expenses | 522.3 |  |  | 150.7 |  |  | 52.0 |  |  | 2.7 |  |  | 16.3 |  |  | 744.0 |
Income from equity investees | — |  |  | 119.6 |  |  | 3.1 |  |  | 127.2 |  |  | — |  |  | 249.9 |
Operating income/(loss) | 3,223.3 |  |  | 500.5 |  |  | 168.2 |  |  | 653.9 |  |  | (24.8 | ) |  | 4,521.1 |
Total assets | 2,726.7 |  |  | 2,230.5 |  |  | 749.1 |  |  | 87.3 |  |  | 1,785.3 |  |  | 7,578.9 |
Fiscal 2014 |  |  |  |  |  |  |  |  |  |  |
Total net revenues | $ | 11,980.5 |  |  | $ | 1,129.6 |  |  | $ | 1,294.8 |  |  | $ | 1,546.0 |  |  | $ | 496.9 |  |  | $ | 16,447.8 |
Depreciation and amortization expenses | 469.5 |  |  | 46.1 |  |  | 59.4 |  |  | 1.8 |  |  | 15.2 |  |  | 592.0 |
Income from equity investees | — |  |  | 164.0 |  |  | 3.7 |  |  | 100.6 |  |  | — |  |  | 268.3 |
Operating income/(loss) | 2,809.0 |  |  | 372.5 |  |  | 119.2 |  |  | 557.2 |  |  | (26.8 | ) |  | 3,831.1 |
Total assets | 2,521.4 |  |  | 939.8 |  |  | 663.0 |  |  | 84.6 |  |  | 825.2 |  |  | 5,034.0 |
The following table reconciles total segment operating income in the table above to consolidated earnings before income taxes (in millions):
Fiscal Year Ended | Oct 2, 2016 |  | Sep 27, 2015 |  | Sep 28, 2014
Total segment operating income | $ | 5,294.1 |  |  | $ | 4,521.1 |  |  | $ | 3,831.1 |
Unallocated corporate operating expenses | (1,122.2 | ) |  | (920.1 | ) |  | (750.0 | )
Consolidated operating income | 4,171.9 |  |  | 3,601.0 |  |  | 3,081.1 |
Gain resulting from acquisition of joint venture | — |  |  | 390.6 |  |  | — |
Loss on extinguishment of debt | — |  |  | (61.1 | ) |  | — |
Interest income and other, net | 108.0 |  |  | 43.0 |  |  | 142.7 |
Interest expense | (81.3 | ) |  | (70.5 | ) |  | (64.1 | )
Earnings before income taxes | $ | 4,198.6 |  |  | $ | 3,903.0 |  |  | $ | 3,159.7 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
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