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Segment Reporting | 12 Months Ended
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Sep. 30, 2018
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting Segment information is prepared on the same basis that our ceo, who is our Chief Operating Decision Maker, manages the segments, evaluates financial results, and makes key operating decisions. On August 26, 2018, our Channel Development segment finalized licensing and distribution agreements with Nestlé to sell and market our consumer packaged goods and foodservice products. The scope of the arrangement converts the majority of our previously defined Channel Development segment operations, as well as certain smaller businesses previously reported in the Americas, EMEA and Corporate and Other (previously All Other Segments), from company-owned to licensed operations with Nestlé. As a result, we realigned our organizational and operating segment structures in support of this newly established Global Coffee Alliance, and our reportable segments were restated as if those smaller businesses were previously within our Channel Development segment. 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. 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 in various stages of development or undergoing transformations of their business models. Therefore, they may require a more extensive support organization, relative to their current levels of revenue and operating income, than our Americas operations. Channel Development revenues include packaged coffee sales, tea and ready-to-drink beverages to customers outside of our company-operated and licensed stores. Historically revenues have included domestic and international sales of our packaged coffee, tea and ready-to-drink products to grocery, warehouse club and specialty retail stores and through institutional foodservice companies which serviced businesses. In the fourth quarter of fiscal 2018, we licensed our consumer packaged goods and foodservice businesses to Nestlé. As a result, Channel Development revenues also include revenues from product sales to and royalty revenues from Nestlé. The collaborative business relationships for ready-to-drink products and the associated revenues remain unchanged due to the Global Coffee Alliance. Consolidated revenue mix by product type (in millions):
Fiscal Year Ended | Sep 30, 2018 |  | Oct 1, 2017 |  | Oct 2, 2016
Beverage | $ | 14,463.1 |  |  | 59 | % |  | $ | 12,915.0 |  |  | 58 | % |  | $ | 12,383.4 |  |  | 58 | %
Food | 4,397.7 |  |  | 18 | % |  | 3,832.1 |  |  | 17 | % |  | 3,495.0 |  |  | 16 | %
Packaged and single-serve coffees and teas | 2,797.5 |  |  | 11 | % |  | 2,883.6 |  |  | 13 | % |  | 2,866.0 |  |  | 14 | %
Other(1) | 3,061.2 |  |  | 12 | % |  | 2,756.1 |  |  | 12 | % |  | 2,571.5 |  |  | 12 | %
Total | $ | 24,719.5 |  |  | 100 | % |  | $ | 22,386.8 |  |  | 100 | % |  | $ | 21,315.9 |  |  | 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 | Sep 30, 2018 |  | Oct 1, 2017 |  | Oct 2, 2016
Net revenues: |  |  |  |  |
United States | $ | 17,409.4 |  |  | $ | 16,527.1 |  |  | $ | 15,774.8 |
Other countries | 7,310.1 |  |  | 5,859.7 |  |  | 5,541.1 |
Total | $ | 24,719.5 |  |  | $ | 22,386.8 |  |  | $ | 21,315.9 |
Long-lived assets: |  |  |  |  |
United States | $ | 5,635.9 |  |  | $ | 5,848.3 |  |  | $ | 6,012.8 |
Other countries | 6,026.3 |  |  | 3,234.0 |  |  | 3,541.8 |
Total | $ | 11,662.2 |  |  | $ | 9,082.3 |  |  | $ | 9,554.6 |
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 China, Japan, Canada and the U.K., which together account for approximately 81% of net revenues from other countries for fiscal 2018. 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 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 Corporate and Other segment for the years ended September 30, 2018, October 1, 2017 and October 2, 2016.
(in millions) | Americas |  | China / Asia Pacific |  | EMEA |  | Channel Development |  | Corporate and Other |  | Total
Fiscal 2018 |  |  |  |  |  |  |  |  |  |  |
Total net revenues | $ | 16,732.2 |  |  | $ | 4,473.6 |  |  | $ | 1,048.0 |  |  | $ | 2,297.3 |  |  | $ | 168.4 |  |  | $ | 24,719.5 |
Depreciation and amortization expenses | 638.3 |  |  | 412.1 |  |  | 31.7 |  |  | 1.3 |  |  | 163.6 |  |  | 1,247.0 |
Income from equity investees | — |  |  | 117.4 |  |  | — |  |  | 183.8 |  |  | — |  |  | 301.2 |
Operating income/(loss) | 3,614.4 |  |  | 867.4 |  |  | 61.5 |  |  | 927.1 |  |  | (1,587.1 | ) |  | 3,883.3 |
Total assets | 4,380.9 |  |  | 5,863.5 |  |  | 356.4 |  |  | 148.2 |  |  | 13,407.4 |  |  | 24,156.4 |
Fiscal 2017 |  |  |  |  |  |  |  |  |  |  |
Total net revenues | $ | 15,620.0 |  |  | $ | 3,240.2 |  |  | $ | 958.7 |  |  | $ | 2,256.6 |  |  | $ | 311.3 |  |  | $ | 22,386.8 |
Depreciation and amortization expenses | 614.9 |  |  | 202.2 |  |  | 30.6 |  |  | 3.0 |  |  | 160.7 |  |  | 1,011.4 |
Income from equity investees | — |  |  | 197.0 |  |  | — |  |  | 194.4 |  |  | — |  |  | 391.4 |
Operating income/(loss) | 3,653.6 |  |  | 765.0 |  |  | 94.5 |  |  | 967.0 |  |  | (1,345.4 | ) |  | 4,134.7 |
Total assets | 3,327.2 |  |  | 2,770.9 |  |  | 273.8 |  |  | 129.1 |  |  | 7,864.6 |  |  | 14,365.6 |
Fiscal 2016 |  |  |  |  |  |  |  |  |  |  |
Total net revenues | $ | 14,775.2 |  |  | $ | 2,938.8 |  |  | $ | 1,071.5 |  |  | $ | 2,195.1 |  |  | $ | 335.3 |  |  | $ | 21,315.9 |
Depreciation and amortization expenses | 590.0 |  |  | 180.6 |  |  | 39.9 |  |  | 3.9 |  |  | 166.4 |  |  | 980.8 |
Income from equity investees | — |  |  | 150.1 |  |  | 1.5 |  |  | 166.6 |  |  | — |  |  | 318.2 |
Operating income/(loss) | 3,738.5 |  |  | 631.6 |  |  | 131.0 |  |  | 877.3 |  |  | (1,206.5 | ) |  | 4,171.9 |
Total assets | 3,424.6 |  |  | 2,740.2 |  |  | 552.1 |  |  | 82.2 |  |  | 7,513.4 |  |  | 14,312.5 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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