EX-99.2 3 sbux-9292019xexhibit992.htm EXHIBIT 99.2
Exhibit 99.2
Q4 2019 RE-SEGMENTATION AND STATEMENTS OF EARNINGS RECLASSIFICATIONS
In the fourth quarter of fiscal 2019, we realigned Starbucks operating segment reporting structure to better reflect the cumulative effect of our streamlining efforts. Specifically, our previous China/Asia Pacific ("CAP") segment and Europe, Middle East, and Africa ("EMEA") segment have been combined into one International segment. We will continue to provide supplemental information on our two lead growth markets, the U.S. and China, in our quarterly earnings news releases in accordance with our "Growth at Scale" agenda.
Concurrently, results of Siren Retail, a non-reportable operating segment consisting of Starbucks Reserve TM Roastery & Tasting Rooms, Starbucks Reserve brand and Princi operations, which was previously included within Corporate and Other, is now reported within the Americas and International segments based on the geographical location of the operations.
Further, to better support the review of our results, we have changed the classification of certain costs. The most significant change is the reclassification of company-operated store occupancy costs from cost of sales to store operating expenses. We have also made certain other immaterial changes. These reclassifications have been retrospectively applied.
There was no impact to consolidated net revenues, consolidated operating income, or net earnings per share as a result of these changes.
Concurrent with the change in reportable segments and reclassification of certain operating expenses noted above, we have revised our prior period financial information to be consistent with the current period presentation.
The tables below present our consolidated and reportable segment results, as recast, net of intersegment eliminations (unaudited, in millions):

| Quarter Ended |  | Fiscal Year Ended
Consolidated (GAAP) | Dec 31, 2017 |  | Apr 1, 2018 |  | Jul 1, 2018 |  | Sep 30, 2018 |  | Sep 30, 2018
Net revenues: |  |  |  |  |  |  |  |  |
Company-operated stores | $ | 4,741.8 |  |  | $ | 4,828.0 |  |  | $ | 5,060.4 |  |  | $ | 5,060.1 |  |  | $ | 19,690.3 |
Licensed stores | 682.4 |  |  | 625.6 |  |  | 660.6 |  |  | 683.6 |  |  | 2,652.2 |
Other | 649.5 |  |  | 578.2 |  |  | 589.3 |  |  | 559.9 |  |  | 2,377.0 |
Total net revenues | 6,073.7 |  |  | 6,031.8 |  |  | 6,310.3 |  |  | 6,303.6 |  |  | 24,719.5 |
Cost of sales | 1,988.7 |  |  | 1,947.8 |  |  | 1,975.4 |  |  | 2,018.7 |  |  | 7,930.7 |
Store operating expenses | 2,255.8 |  |  | 2,365.8 |  |  | 2,412.5 |  |  | 2,438.1 |  |  | 9,472.2 |
Other operating expenses | 132.9 |  |  | 124.9 |  |  | 135.9 |  |  | 161.2 |  |  | 554.9 |
Depreciation and amortization expenses | 258.8 |  |  | 331.6 |  |  | 330.0 |  |  | 326.6 |  |  | 1,247.0 |
General and administrative expenses | 383.2 |  |  | 407.2 |  |  | 472.8 |  |  | 444.9 |  |  | 1,708.2 |
Restructuring and impairments | 27.6 |  |  | 134.7 |  |  | 16.9 |  |  | 45.2 |  |  | 224.4 |
Total operating expenses | 5,047.0 |  |  | 5,312.0 |  |  | 5,343.5 |  |  | 5,434.7 |  |  | 21,137.4 |
Income from equity investees | 89.4 |  |  | 52.7 |  |  | 71.4 |  |  | 87.7 |  |  | 301.2 |
Operating income | $ | 1,116.1 |  |  | $ | 772.5 |  |  | $ | 1,038.2 |  |  | $ | 956.6 |  |  | $ | 3,883.3 |
Operating margin | 18.4 | % |  | 12.8 | % |  | 16.5 | % |  | 15.2 | % |  | 15.7 | %

Q4 2019 RE-SEGMENTATION AND STATEMENTS OF EARNINGS RECLASSIFICATIONS

| Quarter Ended |  | Fiscal Year Ended
Consolidated (Non-GAAP) | Dec 31, 2017 |  | Apr 1, 2018 |  | Jul 1, 2018 |  | Sep 30, 2018 |  | Sep 30, 2018
Net revenues: |  |  |  |  |  |  |  |  |
Company-operated stores | $ | 4,741.8 |  |  | $ | 4,828.0 |  |  | $ | 5,060.4 |  |  | $ | 5,060.1 |  |  | $ | 19,690.3 |
Licensed stores | 682.4 |  |  | 625.6 |  |  | 660.6 |  |  | 683.6 |  |  | 2,652.2 |
Other | 649.5 |  |  | 578.2 |  |  | 589.3 |  |  | 559.9 |  |  | 2,377.0 |
Total net revenues | 6,073.7 |  |  | 6,031.8 |  |  | 6,310.3 |  |  | 6,303.6 |  |  | 24,719.5 |
Cost of sales | 1,984.3 |  |  | 1,950.1 |  |  | 1,975.9 |  |  | 2,018.7 |  |  | 7,929.1 |
Store operating expenses | 2,254.3 |  |  | 2,363.8 |  |  | 2,411.1 |  |  | 2,431.6 |  |  | 9,460.9 |
Other operating expenses | 132.9 |  |  | 122.1 |  |  | 130.6 |  |  | 121.6 |  |  | 507.2 |
Depreciation and amortization expenses | 246.9 |  |  | 276.1 |  |  | 274.6 |  |  | 274.3 |  |  | 1,071.9 |
General and administrative expenses | 377.2 |  |  | 395.3 |  |  | 419.6 |  |  | 402.0 |  |  | 1,594.2 |
Restructuring and impairments | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total operating expenses | 4,995.6 |  |  | 5,107.4 |  |  | 5,211.8 |  |  | 5,248.2 |  |  | 20,563.3 |
Income from equity investees | 89.4 |  |  | 52.7 |  |  | 71.4 |  |  | 87.7 |  |  | 301.2 |
Operating income | $ | 1,167.5 |  |  | $ | 977.1 |  |  | $ | 1,169.9 |  |  | $ | 1,143.1 |  |  | $ | 4,457.4 |
Operating margin | 19.2 | % |  | 16.2 | % |  | 18.5 | % |  | 18.1 | % |  | 18.0 | %

Q4 2019 RE-SEGMENTATION AND STATEMENTS OF EARNINGS RECLASSIFICATIONS

| Quarter Ended |  | Fiscal Year Ended
Americas (GAAP) | Dec 31, 2017 |  | Apr 1, 2018 |  | Jul 1, 2018 |  | Sep 30, 2018 |  | Sep 30, 2018
Net revenues: |  |  |  |  |  |  |  |  |
Company-operated stores | $ | 3,790.0 |  |  | $ | 3,568.1 |  |  | $ | 3,773.0 |  |  | $ | 3,790.3 |  |  | $ | 14,921.5 |
Licensed stores | 466.7 |  |  | 429.3 |  |  | 452.0 |  |  | 466.1 |  |  | 1,814.0 |
Other | 3.9 |  |  | 2.2 |  |  | 3.5 |  |  | 3.5 |  |  | 13.1 |
Total net revenues | $ | 4,260.6 |  |  | $ | 3,999.6 |  |  | $ | 4,228.5 |  |  | $ | 4,259.9 |  |  | $ | 16,748.6 |
Cost of sales | 1,250.5 |  |  | 1,181.0 |  |  | 1,211.8 |  |  | 1,240.8 |  |  | 4,884.1 |
Store operating expenses | 1,796.3 |  |  | 1,777.9 |  |  | 1,827.2 |  |  | 1,847.2 |  |  | 7,248.6 |
Other operating expenses | 38.9 |  |  | 34.3 |  |  | 37.0 |  |  | 41.0 |  |  | 151.2 |
Depreciation and amortization expenses | 158.3 |  |  | 160.8 |  |  | 160.2 |  |  | 161.7 |  |  | 641.0 |
General and administrative expenses | 64.5 |  |  | 74.2 |  |  | 100.4 |  |  | 66.0 |  |  | 305.1 |
Restructuring and impairments | 1.6 |  |  | 0.9 |  |  | 18.4 |  |  | 12.4 |  |  | 33.4 |
Total operating expenses | 3,310.1 |  |  | 3,229.1 |  |  | 3,355.0 |  |  | 3,369.1 |  |  | 13,263.4 |
Operating income | $ | 950.5 |  |  | $ | 770.5 |  |  | $ | 873.5 |  |  | $ | 890.8 |  |  | $ | 3,485.2 |
Operating margin | 22.3 | % |  | 19.3 | % |  | 20.7 | % |  | 20.9 | % |  | 20.8 | %

| Quarter Ended |  | Fiscal Year Ended
Americas (Non-GAAP) | Dec 31, 2017 |  | Apr 1, 2018 |  | Jul 1, 2018 |  | Sep 30, 2018 |  | Sep 30, 2018
Net revenues: |  |  |  |  |  |  |  |  |
Company-operated stores | $ | 3,790.0 |  |  | $ | 3,568.1 |  |  | $ | 3,773.0 |  |  | $ | 3,790.3 |  |  | $ | 14,921.5 |
Licensed stores | 466.7 |  |  | 429.3 |  |  | 452.0 |  |  | 466.1 |  |  | 1,814.0 |
Other | 3.9 |  |  | 2.2 |  |  | 3.5 |  |  | 3.5 |  |  | 13.1 |
Total net revenues | 4,260.6 |  |  | 3,999.6 |  |  | 4,228.5 |  |  | 4,259.9 |  |  | 16,748.6 |
Cost of sales | 1,250.5 |  |  | 1,181.0 |  |  | 1,211.8 |  |  | 1,240.8 |  |  | 4,884.1 |
Store operating expenses | 1,796.3 |  |  | 1,777.4 |  |  | 1,827.2 |  |  | 1,847.5 |  |  | 7,248.3 |
Other operating expenses | 38.9 |  |  | 34.3 |  |  | 37.2 |  |  | 41.0 |  |  | 151.4 |
Depreciation and amortization expenses | 158.3 |  |  | 160.8 |  |  | 160.2 |  |  | 161.7 |  |  | 641.0 |
General and administrative expenses | 64.5 |  |  | 73.1 |  |  | 100.4 |  |  | 67.1 |  |  | 305.1 |
Restructuring and impairments | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total operating expenses | 3,308.5 |  |  | 3,226.6 |  |  | 3,336.8 |  |  | 3,358.1 |  |  | 13,229.9 |
Operating income | $ | 952.1 |  |  | $ | 773.0 |  |  | $ | 891.7 |  |  | $ | 901.8 |  |  | $ | 3,518.7 |
Operating margin | 22.3 | % |  | 19.3 | % |  | 21.1 | % |  | 21.2 | % |  | 21.0 | %

Q4 2019 RE-SEGMENTATION AND STATEMENTS OF EARNINGS RECLASSIFICATIONS

| Quarter Ended |  | Fiscal Year Ended
International (GAAP) | Dec 31, 2017 |  | Apr 1, 2018 |  | Jul 1, 2018 |  | Sep 30, 2018 |  | Sep 30, 2018
Net revenues: |  |  |  |  |  |  |  |  |
Company-operated stores | $ | 898.5 |  |  | $ | 1,246.5 |  |  | $ | 1,287.4 |  |  | $ | 1,269.8 |  |  | $ | 4,702.1 |
Licensed stores | 214.6 |  |  | 196.3 |  |  | 208.6 |  |  | 217.5 |  |  | 837.0 |
Other | 3.1 |  |  | 3.8 |  |  | 2.8 |  |  | 2.5 |  |  | 12.1 |
Total net revenues | 1,116.2 |  |  | 1,446.6 |  |  | 1,498.8 |  |  | 1,489.8 |  |  | 5,551.2 |
Cost of sales | 371.4 |  |  | 449.3 |  |  | 440.9 |  |  | 447.8 |  |  | 1,709.4 |
Store operating expenses | 427.7 |  |  | 579.1 |  |  | 584.9 |  |  | 590.6 |  |  | 2,182.3 |
Other operating expenses | 26.5 |  |  | 26.2 |  |  | 21.9 |  |  | 24.4 |  |  | 98.9 |
Depreciation and amortization expenses | 61.3 |  |  | 130.9 |  |  | 129.8 |  |  | 125.6 |  |  | 447.6 |
General and administrative expenses | 60.4 |  |  | 67.5 |  |  | 95.7 |  |  | 78.9 |  |  | 302.5 |
Restructuring and impairments | — |  |  | 28.5 |  |  | — |  |  | 26.6 |  |  | 55.1 |
Total operating expenses | 947.3 |  |  | 1,281.5 |  |  | 1,273.2 |  |  | 1,293.9 |  |  | 4,795.8 |
Income from equity investees | 50.7 |  |  | 16.7 |  |  | 23.5 |  |  | 26.5 |  |  | 117.4 |
Operating income | $ | 219.6 |  |  | $ | 181.8 |  |  | $ | 249.1 |  |  | $ | 222.4 |  |  | $ | 872.8 |
Operating margin | 19.7 | % |  | 12.6 | % |  | 16.6 | % |  | 14.9 | % |  | 15.7 | %

| Quarter Ended |  | Fiscal Year Ended
International (Non-GAAP) | Dec 31, 2017 |  | Apr 1, 2018 |  | Jul 1, 2018 |  | Sep 30, 2018 |  | Sep 30, 2018
Net revenues: |  |  |  |  |  |  |  |  |
Company-operated stores | $ | 898.5 |  |  | $ | 1,246.5 |  |  | $ | 1,287.4 |  |  | $ | 1,269.8 |  |  | $ | 4,702.1 |
Licensed stores | 214.6 |  |  | 196.3 |  |  | 208.6 |  |  | 217.5 |  |  | 837.0 |
Other | 3.1 |  |  | 3.8 |  |  | 2.8 |  |  | 2.5 |  |  | 12.1 |
Total net revenues | 1,116.2 |  |  | 1,446.6 |  |  | 1,498.8 |  |  | 1,489.8 |  |  | 5,551.2 |
Cost of sales | 371.4 |  |  | 449.3 |  |  | 440.9 |  |  | 447.8 |  |  | 1,709.4 |
Store operating expenses | 426.2 |  |  | 577.6 |  |  | 583.5 |  |  | 583.8 |  |  | 2,171.2 |
Other operating expenses | 26.5 |  |  | 23.4 |  |  | 22.1 |  |  | 24.4 |  |  | 96.3 |
Depreciation and amortization expenses | 49.4 |  |  | 75.4 |  |  | 74.4 |  |  | 73.3 |  |  | 272.5 |
General and administrative expenses | 58.9 |  |  | 60.6 |  |  | 73.0 |  |  | 73.8 |  |  | 266.3 |
Restructuring and impairments | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total operating expenses | 932.4 |  |  | 1,186.3 |  |  | 1,193.9 |  |  | 1,203.1 |  |  | 4,515.7 |
Income from equity investees | 50.7 |  |  | 16.7 |  |  | 23.5 |  |  | 26.5 |  |  | 117.4 |
Operating income | $ | 234.5 |  |  | $ | 277.0 |  |  | $ | 328.4 |  |  | $ | 313.2 |  |  | $ | 1,152.9 |
Operating margin | 21.0 | % |  | 19.1 | % |  | 21.9 | % |  | 21.0 | % |  | 20.8 | %

Q4 2019 RE-SEGMENTATION AND STATEMENTS OF EARNINGS RECLASSIFICATIONS

| Quarter Ended |  | Fiscal Year Ended
Channel Development (GAAP) | Dec 31, 2017 |  | Apr 1, 2018 |  | Jul 1, 2018 |  | Sep 30, 2018 |  | Sep 30, 2018
Total net revenues | $ | 628.0 |  |  | $ | 562.6 |  |  | $ | 567.4 |  |  | $ | 539.3 |  |  | $ | 2,297.3 |
Cost of sales | 330.7 |  |  | 302.8 |  |  | 304.6 |  |  | 314.3 |  |  | 1,252.3 |
Other operating expenses | 62.4 |  |  | 58.1 |  |  | 74.0 |  |  | 92.0 |  |  | 286.5 |
Depreciation and amortization expenses | 0.6 |  |  | 0.3 |  |  | 0.2 |  |  | 0.1 |  |  | 1.3 |
General and administrative expenses | 3.4 |  |  | 3.4 |  |  | 3.7 |  |  | 3.3 |  |  | 13.9 |
Total operating expenses | 397.1 |  |  | 364.6 |  |  | 382.5 |  |  | 409.7 |  |  | 1,554.0 |
Income from equity investees | 38.7 |  |  | 36.0 |  |  | 47.9 |  |  | 61.2 |  |  | 183.8 |
Operating income | $ | 269.6 |  |  | $ | 234.0 |  |  | $ | 232.8 |  |  | $ | 190.8 |  |  | $ | 927.1 |
Operating margin | 42.9 | % |  | 41.6 | % |  | 41.0 | % |  | 35.4 | % |  | 40.4 | %

| Quarter Ended |  | Fiscal Year Ended
Channel Development (Non-GAAP) | Dec 31, 2017 |  | Apr 1, 2018 |  | Jul 1, 2018 |  | Sep 30, 2018 |  | Sep 30, 2018
Total net revenues | $ | 628.0 |  |  | $ | 562.6 |  |  | $ | 567.4 |  |  | $ | 539.3 |  |  | $ | 2,297.3 |
Cost of sales | 330.7 |  |  | 302.8 |  |  | 304.6 |  |  | 314.3 |  |  | 1,252.3 |
Other operating expenses | 62.4 |  |  | 58.1 |  |  | 68.4 |  |  | 52.4 |  |  | 241.3 |
Depreciation and amortization expenses | 0.6 |  |  | 0.3 |  |  | 0.2 |  |  | 0.1 |  |  | 1.3 |
General and administrative expenses | 3.4 |  |  | 3.4 |  |  | 4.7 |  |  | 3.3 |  |  | 14.9 |
Restructuring and impairments | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total operating expenses | 397.1 |  |  | 364.6 |  |  | 377.9 |  |  | 370.1 |  |  | 1,509.8 |
Income from equity investees | 38.7 |  |  | 36.0 |  |  | 47.9 |  |  | 61.2 |  |  | 183.8 |
Operating income | $ | 269.6 |  |  | $ | 234.0 |  |  | $ | 237.4 |  |  | $ | 230.4 |  |  | $ | 971.3 |
Operating margin | 42.9 | % |  | 41.6 | % |  | 41.8 | % |  | 42.7 | % |  | 42.3 | %

Q4 2019 RE-SEGMENTATION AND STATEMENTS OF EARNINGS RECLASSIFICATIONS

| Quarter Ended |  | Fiscal Year Ended
Corporate and Other (GAAP) | Dec 31, 2017 |  | Apr 1, 2018 |  | Jul 1, 2018 |  | Sep 30, 2018 |  | Sep 30, 2018
Net revenues: |  |  |  |  |  |  |  |  |
Company-operated stores | $ | 53.3 |  |  | $ | 13.4 |  |  | $ | — |  |  | $ | — |  |  | $ | 66.7 |
Licensed stores | 1.1 |  |  | — |  |  | — |  |  | — |  |  | 1.2 |
Other | 14.5 |  |  | 9.6 |  |  | 15.6 |  |  | 14.6 |  |  | 54.5 |
Total net revenues | 68.9 |  |  | 23.0 |  |  | 15.6 |  |  | 14.6 |  |  | 122.4 |
Cost of sales | 36.1 |  |  | 14.7 |  |  | 18.1 |  |  | 15.8 |  |  | 84.9 |
Store operating expenses | 31.8 |  |  | 8.8 |  |  | 0.4 |  |  | 0.3 |  |  | 41.3 |
Other operating expenses | 5.1 |  |  | 6.3 |  |  | 3.0 |  |  | 3.8 |  |  | 18.3 |
Depreciation and amortization expenses | 38.6 |  |  | 39.6 |  |  | 39.8 |  |  | 39.2 |  |  | 157.1 |
General and administrative expenses | 254.9 |  |  | 262.1 |  |  | 273.0 |  |  | 296.7 |  |  | 1,086.7 |
Restructuring and impairments | 26.0 |  |  | 105.3 |  |  | (1.5 | ) |  | 6.2 |  |  | 135.9 |
Total operating expenses | 392.5 |  |  | 436.8 |  |  | 332.8 |  |  | 362.0 |  |  | 1,524.2 |
Operating loss | $ | (323.6 | ) |  | $ | (413.8 | ) |  | $ | (317.2 | ) |  | $ | (347.4 | ) |  | $ | (1,401.8 | )

| Quarter Ended |  | Fiscal Year Ended
Corporate and Other (Non-GAAP) | Dec 31, 2017 |  | Apr 1, 2018 |  | Jul 1, 2018 |  | Sep 30, 2018 |  | Sep 30, 2018
Net revenues: |  |  |  |  |  |  |  |  |
Company-operated stores | $ | 53.3 |  |  | $ | 13.4 |  |  | $ | — |  |  | $ | — |  |  | $ | 66.7 |
Licensed stores | 1.1 |  |  | — |  |  | — |  |  | — |  |  | 1.2 |
Other | 14.5 |  |  | 9.6 |  |  | 15.6 |  |  | 14.6 |  |  | 54.5 |
Total net revenues | 68.9 |  |  | 23.0 |  |  | 15.6 |  |  | 14.6 |  |  | 122.4 |
Cost of sales | 31.7 |  |  | 17.0 |  |  | 18.6 |  |  | 15.8 |  |  | 83.3 |
Store operating expenses | 31.8 |  |  | 8.8 |  |  | 0.4 |  |  | 0.3 |  |  | 41.4 |
Other operating expenses | 5.1 |  |  | 6.3 |  |  | 2.9 |  |  | 3.8 |  |  | 18.2 |
Depreciation and amortization expenses | 38.6 |  |  | 39.6 |  |  | 39.8 |  |  | 39.2 |  |  | 157.1 |
General and administrative expenses | 250.4 |  |  | 258.2 |  |  | 241.5 |  |  | 257.8 |  |  | 1,007.9 |
Restructuring and impairments | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total operating expenses | 357.6 |  |  | 329.9 |  |  | 303.2 |  |  | 316.9 |  |  | 1,307.9 |
Operating loss | $ | (288.7 | ) |  | $ | (306.9 | ) |  | $ | (287.6 | ) |  | $ | (302.3 | ) |  | $ | (1,185.5 | )

Q4 2019 RE-SEGMENTATION AND STATEMENTS OF EARNINGS RECLASSIFICATIONS

| Quarter Ended
Consolidated (GAAP) | Dec 30, 2018 |  | Mar 31, 2019 |  | Jun 30, 2019
Net revenues: |  |  |  |  |
Company-operated stores | $ | 5,370.3 |  |  | $ | 5,159.0 |  |  | $ | 5,535.0 |
Licensed stores | 737.1 |  |  | 678.2 |  |  | 725.0 |
Other | 525.3 |  |  | 468.7 |  |  | 563.0 |
Total net revenues | 6,632.7 |  |  | 6,305.9 |  |  | 6,823.0 |
Cost of sales | 2,175.8 |  |  | 2,012.0 |  |  | 2,199.6 |
Store operating expenses | 2,586.8 |  |  | 2,554.1 |  |  | 2,643.2 |
Other operating expenses | 97.6 |  |  | 87.1 |  |  | 94.4 |
Depreciation and amortization expenses | 333.4 |  |  | 356.2 |  |  | 343.1 |
General and administrative expenses | 448.0 |  |  | 458.1 |  |  | 459.7 |
Restructuring and impairments | 43.2 |  |  | 43.0 |  |  | 37.7 |
Total operating expenses | 5,684.8 |  |  | 5,510.5 |  |  | 5,777.7 |
Income from equity investees | 67.8 |  |  | 62.3 |  |  | 76.0 |
Operating income | $ | 1,015.7 |  |  | $ | 857.7 |  |  | $ | 1,121.3 |
Operating margin | 15.3 | % |  | 13.6 | % |  | 16.4 | %

| Quarter Ended
Consolidated (Non-GAAP) | Dec 30, 2018 |  | Mar 31, 2019 |  | Jun 30, 2019
Net revenues: |  |  |  |  |
Company-operated stores | $ | 5,370.3 |  |  | $ | 5,159.0 |  |  | $ | 5,535.0 |
Licensed stores | 737.1 |  |  | 678.2 |  |  | 725.0 |
Other | 525.3 |  |  | 468.7 |  |  | 563.0 |
Total net revenues | 6,632.7 |  |  | 6,305.9 |  |  | 6,823.0 |
Cost of sales | 2,176.0 |  |  | 2,012.0 |  |  | 2,199.6 |
Store operating expenses | 2,582.1 |  |  | 2,550.3 |  |  | 2,638.3 |
Other operating expenses | 92.6 |  |  | 82.8 |  |  | 90.6 |
Depreciation and amortization expenses | 281.0 |  |  | 302.2 |  |  | 289.5 |
General and administrative expenses | 415.1 |  |  | 421.8 |  |  | 434.4 |
Restructuring and impairments | — |  |  | — |  |  | — |
Total operating expenses | 5,546.8 |  |  | 5,369.1 |  |  | 5,652.4 |
Income from equity investees | 67.8 |  |  | 62.3 |  |  | 76.0 |
Operating income | $ | 1,153.7 |  |  | $ | 999.1 |  |  | $ | 1,246.6 |
Operating margin | 17.4 | % |  | 15.8 | % |  | 18.3 | %

Q4 2019 RE-SEGMENTATION AND STATEMENTS OF EARNINGS RECLASSIFICATIONS

| Quarter Ended
Americas (GAAP) | Dec 30, 2018 |  | Mar 31, 2019 |  | Jun 30, 2019
Net revenues: |  |  |  |  |
Company-operated stores | $ | 4,092.2 |  |  | $ | 3,849.6 |  |  | $ | 4,182.2 |
Licensed stores | 514.6 |  |  | 463.1 |  |  | 496.3 |
Other | 5.7 |  |  | 1.4 |  |  | 2.6 |
Total net revenues | 4,612.5 |  |  | 4,314.1 |  |  | 4,681.1 |
Cost of sales | 1,351.3 |  |  | 1,220.5 |  |  | 1,324.0 |
Store operating expenses | 1,983.1 |  |  | 1,935.7 |  |  | 2,034.0 |
Other operating expenses | 44.5 |  |  | 39.4 |  |  | 41.7 |
Depreciation and amortization expenses | 166.9 |  |  | 173.0 |  |  | 175.6 |
General and administrative expenses | 75.1 |  |  | 70.9 |  |  | 72.0 |
Restructuring and impairments | 22.9 |  |  | 18.2 |  |  | 15.1 |
Total operating expenses | 3,643.8 |  |  | 3,457.7 |  |  | 3,662.4 |
Operating income | $ | 968.7 |  |  | $ | 856.4 |  |  | $ | 1,018.7 |
Operating margin | 21.0 | % |  | 19.9 | % |  | 21.8 | %

| Quarter Ended
Americas (Non-GAAP) | Dec 30, 2018 |  | Mar 31, 2019 |  | Jun 30, 2019
Net revenues: |  |  |  |  |
Company-operated stores | $ | 4,092.2 |  |  | $ | 3,849.6 |  |  | $ | 4,182.2 |
Licensed stores | 514.6 |  |  | 463.1 |  |  | 496.3 |
Other | 5.7 |  |  | 1.4 |  |  | 2.6 |
Total net revenues | 4,612.5 |  |  | 4,314.1 |  |  | 4,681.1 |
Cost of sales | 1,351.3 |  |  | 1,220.5 |  |  | 1,324.0 |
Store operating expenses | 1,983.2 |  |  | 1,935.7 |  |  | 2,034.0 |
Other operating expenses | 44.7 |  |  | 39.2 |  |  | 41.7 |
Depreciation and amortization expenses | 166.9 |  |  | 173.0 |  |  | 175.6 |
General and administrative expenses | 75.7 |  |  | 70.9 |  |  | 72.4 |
Restructuring and impairments | — |  |  | — |  |  | — |
Total operating expenses | 3,621.8 |  |  | 3,439.3 |  |  | 3,647.7 |
Operating income | $ | 990.7 |  |  | $ | 874.8 |  |  | $ | 1,033.4 |
Operating margin | 21.5 | % |  | 20.3 | % |  | 22.1 | %

Q4 2019 RE-SEGMENTATION AND STATEMENTS OF EARNINGS RECLASSIFICATIONS

| Quarter Ended
International (GAAP) | Dec 30, 2018 |  | Mar 31, 2019 |  | Jun 30, 2019
Net revenues: |  |  |  |  |
Company-operated stores | $ | 1,278.1 |  |  | $ | 1,309.4 |  |  | $ | 1,352.8 |
Licensed stores | 222.5 |  |  | 215.1 |  |  | 228.7 |
Other | 3.4 |  |  | 4.9 |  |  | 3.8 |
Total net revenues | 1,504.0 |  |  | 1,529.4 |  |  | 1,585.3 |
Cost of sales | 462.7 |  |  | 470.2 |  |  | 476.1 |
Store operating expenses | 603.7 |  |  | 618.4 |  |  | 609.2 |
Other operating expenses | 31.3 |  |  | 26.3 |  |  | 26.7 |
Depreciation and amortization expenses | 127.0 |  |  | 130.4 |  |  | 127.7 |
General and administrative expenses | 69.3 |  |  | 80.2 |  |  | 86.0 |
Restructuring and impairments | 6.4 |  |  | 24.2 |  |  | 16.6 |
Total operating expenses | 1,300.4 |  |  | 1,349.7 |  |  | 1,342.3 |
Income from equity investees | 26.4 |  |  | 22.1 |  |  | 27.2 |
Operating income | $ | 230.0 |  |  | $ | 201.8 |  |  | $ | 270.2 |
Operating margin | 15.3 | % |  | 13.2 | % |  | 17.0 | %

| Quarter Ended
International (Non-GAAP) | Dec 30, 2018 |  | Mar 31, 2019 |  | Jun 30, 2019
Net revenues: |  |  |  |  |
Company-operated stores | $ | 1,278.1 |  |  | $ | 1,309.4 |  |  | $ | 1,352.8 |
Licensed stores | 222.5 |  |  | 215.1 |  |  | 228.7 |
Other | 3.4 |  |  | 4.9 |  |  | 3.8 |
Total net revenues | 1,504.0 |  |  | 1,529.4 |  |  | 1,585.3 |
Cost of sales | 462.7 |  |  | 470.2 |  |  | 476.1 |
Store operating expenses | 598.9 |  |  | 614.6 |  |  | 604.3 |
Other operating expenses | 31.4 |  |  | 26.2 |  |  | 24.4 |
Depreciation and amortization expenses | 74.6 |  |  | 76.4 |  |  | 74.1 |
General and administrative expenses | 66.3 |  |  | 69.1 |  |  | 74.2 |
Restructuring and impairments | — |  |  | — |  |  | — |
Total operating expenses | 1,233.9 |  |  | 1,256.5 |  |  | 1,253.1 |
Income from equity investees | 26.4 |  |  | 22.1 |  |  | 27.2 |
Operating income | $ | 296.5 |  |  | $ | 295.0 |  |  | $ | 359.4 |
Operating margin | 19.7 | % |  | 19.3 | % |  | 22.7 | %

Q4 2019 RE-SEGMENTATION AND STATEMENTS OF EARNINGS RECLASSIFICATIONS

| Quarter Ended
Channel Development (GAAP) | Dec 30, 2018 |  | Mar 31, 2019 |  | Jun 30, 2019
Total net revenues | $ | 504.6 |  |  | $ | 446.6 |  |  | $ | 533.3 |
Cost of sales | 348.4 |  |  | 305.4 |  |  | 377.1 |
Other operating expenses | 18.6 |  |  | 17.1 |  |  | 20.2 |
Depreciation and amortization expenses | — |  |  | 12.3 |  |  | 0.2 |
General and administrative expenses | 3.2 |  |  | 3.1 |  |  | 2.7 |
Total operating expenses | 370.2 |  |  | 337.9 |  |  | 400.2 |
Income from equity investees | 41.4 |  |  | 40.2 |  |  | 48.8 |
Operating income | $ | 175.8 |  |  | $ | 148.9 |  |  | $ | 181.9 |
Operating margin | 34.8 | % |  | 33.3 | % |  | 34.1 | %

| Quarter Ended
Channel Development (Non-GAAP) | Dec 30, 2018 |  | Mar 31, 2019 |  | Jun 30, 2019
Total net revenues | $ | 504.6 |  |  | $ | 446.6 |  |  | $ | 533.3 |
Cost of sales | 348.4 |  |  | 305.4 |  |  | 377.1 |
Other operating expenses | 13.3 |  |  | 13.1 |  |  | 18.7 |
Depreciation and amortization expenses | — |  |  | 12.3 |  |  | 0.2 |
General and administrative expenses | 3.2 |  |  | 3.1 |  |  | 2.7 |
Total operating expenses | 364.9 |  |  | 333.9 |  |  | 398.7 |
Income from equity investees | 41.4 |  |  | 40.2 |  |  | 48.8 |
Operating income | $ | 181.1 |  |  | $ | 152.9 |  |  | $ | 183.4 |
Operating margin | 35.9 | % |  | 34.2 | % |  | 34.4 | %

Q4 2019 RE-SEGMENTATION AND STATEMENTS OF EARNINGS RECLASSIFICATIONS

| Quarter Ended
Corporate and Other (GAAP) | Dec 30, 2018 |  | Mar 31, 2019 |  | Jun 30, 2019
Total net revenues | $ | 11.6 |  |  | $ | 15.8 |  |  | $ | 23.3 |
Cost of sales | 13.4 |  |  | 15.9 |  |  | 22.4 |
Store operating expenses | — |  |  | — |  |  | — |
Other operating expenses | 3.2 |  |  | 4.3 |  |  | 5.8 |
Depreciation and amortization expenses | 39.5 |  |  | 40.5 |  |  | 39.6 |
General and administrative expenses | 300.4 |  |  | 303.9 |  |  | 299.0 |
Restructuring and impairments | 13.9 |  |  | 0.6 |  |  | 6.0 |
Total operating expenses | 370.4 |  |  | 365.2 |  |  | 372.8 |
Operating loss | $ | (358.8 | ) |  | $ | (349.4 | ) |  | $ | (349.5 | )

| Quarter Ended
Corporate and Other (Non-GAAP) | Dec 30, 2018 |  | Mar 31, 2019 |  | Jun 30, 2019
Total net revenues | $ | 11.6 |  |  | $ | 15.8 |  |  | $ | 23.3 |
Cost of sales | 13.6 |  |  | 15.9 |  |  | 22.4 |
Store operating expenses | — |  |  | — |  |  | — |
Other operating expenses | 3.2 |  |  | 4.3 |  |  | 5.8 |
Depreciation and amortization expenses | 39.5 |  |  | 40.5 |  |  | 39.6 |
General and administrative expenses | 269.9 |  |  | 278.7 |  |  | 285.1 |
Restructuring and impairments | — |  |  | — |  |  | — |
Total operating expenses | 326.2 |  |  | 339.4 |  |  | 352.9 |
Operating loss | $ | (314.6 | ) |  | $ | (323.6 | ) |  | $ | (329.6 | )

Q4 2019 RE-SEGMENTATION AND STATEMENTS OF EARNINGS RECLASSIFICATIONS
Certain metrics have been updated to reflect our new segment reporting structure, including the International segment's comparable store sales. Comparable store sales include Starbucks® company-operated stores open 13 months or longer. Comparable store sales do not reflect the effect of fluctuations in foreign currency exchange rates and results from global Siren Retail operations.

| Quarter Ended |  | Fiscal Year Ended
International | Dec 31, 2017 |  | Apr 1, 2018 |  | Jul 1, 2018 |  | Sep 30, 2018 |  | Sep 30, 2018
Comparable Store Sales Growth | — | % |  | 2 | % |  | (1 | )% |  | 1 | % |  | 1 | %
Change in Transactions | — | % |  | (1 | )% |  | (3 | )% |  | (1 | )% |  | (1 | )%
Change in Ticket | 1 | % |  | 3 | % |  | 2 | % |  | 2 | % |  | 2 | %

| Quarter Ended
International | Dec 30, 2018 |  | Mar 31, 2019 |  | Jun 30, 2019
Comparable Store Sales Growth | 2 | % |  | 2 | % |  | 5 | %
Change in Transactions | 1 | % |  | — | % |  | 1 | %
Change in Ticket | 1 | % |  | 2 | % |  | 3 | %

Q4 2019 RE-SEGMENTATION AND STATEMENTS OF EARNINGS RECLASSIFICATIONS
Under our new segment reporting structure, U.S. and China revenue and store count now include the results of Siren Retail operations. The new structure did not result in any change to previously reported comparable store sales growth, which continues to only include Starbucks® company-operated stores open 13 months or longer and does not reflect the effect of fluctuations in foreign currency exchange rates.

| Quarter Ended
U.S. Supplemental Data | Dec 30, 2018 |  | Mar 31, 2019 |  | Jun 30, 2019
Revenue | $ | 4,216.0 |  |  | $ | 3,955.3 |  |  | $ | 4,288.1 |
Comparable Store Sales Growth(1) | 4 | % |  | 4 | % |  | 7 | %
Change in Transactions | — | % |  | — | % |  | 3 | %
Change in Ticket | 4 | % |  | 4 | % |  | 3 | %
Store Count | 14,767 |  |  | 14,787 |  |  | 14,883 |

(1) Includes only Starbucks® company-operated stores open 13 months or longer. The results from Siren Retail operations are not reflected in comparable store sales.

| Quarter Ended
China Supplemental Data | Dec 30, 2018 |  | Mar 31, 2019 |  | Jun 30, 2019
Revenue | $ | 657.7 |  |  | $ | 708.6 |  |  | $ | 735.2 |
Comparable Store Sales Growth(2) | — | % |  | 2 | % |  | 6 | %
Change in Transactions | (2 | )% |  | (1 | )% |  | 2 | %
Change in Ticket | 2 | % |  | 3 | % |  | 4 | %
Store Count | 3,685 |  |  | 3,791 |  |  | 3,924 |

(2) Includes only Starbucks® company-operated stores open 13 months or longer. The effect of fluctuations in foreign currency exchange rates and results from Siren Retail operations are not reflected in comparable store sales.